11 LICENCE IN ACCOUNTING CONTROL AUDIT

ACADEMY OF FINANCE

UNIVERSITY OF TOULON

PRACTICAL TRAINING REPORT
DEGREE: LICENCE IN ACCOUNTING - CONTROL - AUDIT

Student:

Le Van Giap

Class:

K111

School year:

2020-2023

Company/Bank: DELTA Sports Equipment Joint Stock Company
Time: 30/6/2021 to 30/7/2021

Ha Noi - 2021


TABLE OF CONTENTS
TABLE OF CONTENTS...................................................................................i
LIST OF ABBREVIATIONS...........................................................................iii
LIST OF TABLES............................................................................................iv
FOREWORD....................................................................................................1
PART 1: LEARN ABOUT DELTA SPORTS EQUIPMENT JOINT STOCK

COMPANY AND FINANCIAL INSTITUTIONS...........................................2
1.1. General introduction of DELTA Sports Equipment Joint Stock Company............2
1.1.1. The process of formation and development....................................................2
1.1.2. Characteristics of business activities of DELTA Sports Equipment Joint
Stock Company.................................................................................................7
1.1.3. Size and financial structure of the business............................................9
1.1.4. Size of the company's personnel.............................................................9
1.1.5. Business performance of DELTA Sports Equipment Joint Stock
Company.........................................................................................................10
PART 2: LEARN ABOUT THE MARKET AND DEVELOPMENT
ORIENTATION OF ENTERPRISE................................................................12
2.1 Situation of the market at DELTA . Sports Equipment Joint Stock
Company.........................................................................................................12
2.1.1. Business capital situation and business capital of DELTA Sports
Equipment Joint Stock Company....................................................................12
2.1.2. Status of capital sources of Delta Sports Equipment Joint Stock
Company.........................................................................................................17
2.2. Effects of macro policies on DELTA Sports Equipment Joint Stock
Company.........................................................................................................28
2.3. Influences of DELTA Sports Equipment Joint Stock Company...............29
PART 3: STUDENT COMMENTS AND PRACTICE...................................31
3.1. Advantages and disadvantages of enterprises in the current conditions.. 31

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3.1.1. Socio-economic context........................................................................31
3.1.2. Advantages and disadvantages of business...........................................33

3.2. Overall assessment of the business results of Delta Sports Equipment
Joint Stock Company in the past time.............................................................34
3.2.1. These achievements...............................................................................34
3.2.2. Limitations and reasons.........................................................................36
3.3. Recommendations:...................................................................................37
3.4. Main solutions to strengthen business capital management at DELTA
Sports Equipment Joint Stock Company.........................................................38
3.4.1. Strengthen governance and use of capital in cash.................................38
3.4.2. Strengthen the management of accounts receivable.............................40
3.4.3. Strengthen inventory management........................................................41
3.4.4. Enterprises use the appropriate method of determining working capital
needs................................................................................................................42
3.4.5. Strengthen fixed capital management...................................................43
CONCLUDE...................................................................................................48
LIST OF REFERENCES................................................................................49

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LIST OF ABBREVIATIONS
DN : Enterprise
HTK: Inventory
LN : Profit
NPT : Liabilities
NVDH: Long-term capital
NVNH: Short-term capital
NWC : Regular working capital
CIT: Corporate income

TLSX : Material of production
TSDH : Long-term assets
Assets: Short-term assets
Fixed assets: Fixed assets
Working assets: Current assets
Labor : Labor power
Production and business: Production and business
Capital : Fixed capital
Equity : Equity
VKD : Business capital
Working capital: Working capital
VLDTX: Regular working capital

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LIST OF TABLES
Table 2.2: Business results of the company in 2019-2020..............................10
Table 2.3: Changes in business capital in 2020...............................................12
Table 2.4: Changes in business capital in 2020...............................................14
Table 2.5: Structure and movements of working capital at the end of 2020...17
Table 2.6: Structure and movement of capital in cash at the end of 2020.......20
Table 2.7: Solvency ratios at the end of 2019-2020........................................21
Table 2.8: Structure and movement of short-term receivables in 2020...........24
Table 2.9: Indicators reflecting the effectiveness of the year's receivables
management 2019-2020..................................................................................25
Table 2.11: Structure and movement of long-term assets in 2020..................28

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LIST OF CHARTS RED
Figure 2.1: Working capital structure chart:....................................................18
Figure 2.2: Solvency chart..............................................................................22

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FOREWORD
1. Overview.
In the context of the current economy, every activity in the economy
seems to be associated with the journey of capital. Capital is the leading
factor, very important for every business, every company in all industries and
fields because capital is both the basis and means for the production and
business process of enterprises. , without capital, enterprises cannot conduct
production and business. The goal of businesses is to maximize profits, which
requires businesses to use capital effectively in fiercely competitive market
conditions.
Therefore, the requirement for businesses is to increase the mobilization
of internal and external capital and use and manage capital in the most
effective way. This is considered an important task in the current economic
and financial management system of enterprises, helping businesses to fully,
accurately and timely implement and ensure the correct implementation of the
regime and the law. regulated by the State.

Through the practice of working at DELTA Sports Equipment Joint
Stock Company, with the enthusiastic help of the company's staff of the
finance-accounting department, I have gradually become familiar with reality,
applying theory. and company practices. Because I was aware of the meaning
and importance of the problem, I studied deeply and completed the exercise.
2. Structure of ants.
The main content of the exercise is divided into 3 parts:
Part 1: Learn about DELTA Sports Equipment Joint Stock Company
and financial institutions
Part 2: Understanding the market and development orientation at DELTA
Sports Equipment Joint Stock Company
Part 3: Students' comments and suggestions
After studying and researching at the Institute of Finance - University of
Toulon and practicing at DELTA Sports Equipment Joint Stock Company and
below, the dedicated and thoughtful help from the Specific Equipment Joint
Stock Company In DELTA sports, I have completed my homework. Although
we have tried to understand and analyze, but due to limitations of
qualifications and time, errors cannot be avoided. I look forward to receiving
suggestions and guidance to improve my essay.
Thank you sincerely!

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PART 1: LEARN ABOUT DELTA SPORTS EQUIPMENT JOINT
STOCK COMPANY AND FINANCIAL INSTITUTIONS
1.1. General introduction of DELTA Sports Equipment Joint Stock
Company.

1.1.1. The process of formation and development.
 The process of formation and development of the company
Delta Sports Equipment Joint Stock Company was established under the
Business License No: 2800702548 issued by the Department of Planning and
Investment of Thanh Hoa province for the first time on August 5, 2002, and
changed for the 15th time on December 31. /2019 With the initial charter
capital of: 2,250,000,000 VND, up to now the Company has raised its charter
capital to: 324,000,000,000 VND. The birth of Delta Company marked the
efforts and determination of Mr. Nguyen Trong Tham and the founders. The
founders bought the entire Delta brand, technology, and production lines from
Hungary to bring back to Vietnam for investment and development.
Currently, Delta Company is the leading enterprise with 100% domestic
capital in Thanh Hoa province in the field of manufacturing sports equipment
and apparel, ranked as one of the prestigious domestic and international
enterprises.
- 2002. The founders decided to buy the entire Delta brand, equipment
and technology from Hungary. On August 5, 2002, Delta Sports Equipment
Company was officially established with a charter capital of VND
2,250,000,000 and 35 employees;
- 2004. Continue to improve technology, improve product quality in
order to orient the Company's products towards export;
- 2006. Stable production line, personnel & technology. Expand the
export business strategy and have the first export shipment for customers Voit

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of Mexico and Bigma of Sweden. Marking an important milestone in the

international market for sports products of Delta Sports Equipment Company;
- 2007. Invest in and upgrade the factory system, invest in research on
technology for producing artificial leather balls; opened a production branch
in Thuong Xuan district, Hau Loc district (Thanh Hoa province);
Representative office in Ho Chi Minh City. In particular, the development of
the textile and garment business in Ho Chi Minh City has created a
foundation for the company's sustainable development and international
integration in the coming years. 2007, It is also a year marking the growth
when the Company's products are accepted and cooperated by many partners
such as: Cambuci; Erima, Eria, Challenger.. and exported to major markets
such as: Braxzil; Virtue; Italia; America......
- 2008. Start testing technology to produce sports balls from artificial
leather, completely replacing real cowhide. Maintain and develop existing
customers and cooperate with big customers such as: UHL Sport, Nordic...
- 2009. The project "Investment in construction and expansion of Delta
Sports Equipment Company" was officially started. With a synchronous
investment on an area of 2.1 hectares, the company built 02 production
enterprises, which are sports balls and garment factories. All are equipped
with modern machinery and equipment according to international standards,
creating a spacious and airy workplace for 1,600 workers to work on site.
Transforming the form of textile cooperation into direct production of
garment products. Since then, Delta Sports Equipment Company marked an
important turning point in production and business activities, and at the same
time carved its name into the general picture of Thanh Hoa province's textile
industry.
- 2011. Officially cooperated with Intochu Corporation (Japan). This is
one of the three largest textile corporations in Japan. Converting business

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registration to Joint Stock Company and raising charter capital to 120 billion
dong;
- In 2012. On August 5, 2012, Delta Company started the project "Delta
Production and Welfare Complex" on an area of 120,000m2; investment
capital is nearly 2,700 billion VND. Key works in this project include: Delta
textile production area; Housing area for workers with 250 apartments, a
kindergarten of 30 classes/800 children and Delta Ecological General
Hospital. At the same time, Delta Sports Equipment Joint Stock Company
obtained ISO 9001: 2008 Quality Management System Certification and SA
8000: 2008 Social Responsibility Standard, which is one of the Company's
breakthrough certifications. Delta in an integrated and developed economy.
Won Silver Award, National Quality Award; received the Certificate of Merit
from the Prime Minister;
- 2013. The project "Delta Welfare and Production Complex" basically
completed the infrastructure, and at the same time put into use 13,000m2 of
textile and garment factory, attracting more than 1,000 employees. The
company's export turnover reached nearly 30 million USD, the revenue
reached more than 260 billion VND. Thesis "Research on production
technology solutions to improve the quality and design to improve the
competitiveness of sports ball products on the market". This topic won the
Second Prize at the 12th National Technical Innovation Contest (Vifotec),
2012-2013, with the Creative Labor Certificate of the Vietnam General
Confederation of Labor, the typical product of Thanh Hoa province in the
year. 2013...The company won the Gold Award, National Quality Award,
Third Class Labor Medal & Certificate of Merit from the Prime Minister;
- 2014. Raised the Company's charter capital to VND 240 billion.
Continue to build and complete each work item in the project "Delta Welfare

and Production Complex". Continuing to maintain ISO 9001: 2008, SA 8000:

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2008 standards and achieve rigorous evaluations of Walmark customers; Sear;
TCP... The total number of employees is 2,100 people, the revenue is more
than 300 billion VND, the import-export turnover is more than 35 million
USD; average income is 4,000,000 VND/person/month.
- 2015. To complete textile and garment factories to put them into full
use in early 2016, continue to build welfare works including workers' houses,
kindergartens... to January 1. 2017 put into operation. Continue to improve
the quality of products and services. The revenue in 2015 reached 420 billion
VND, the total number of employees reached 2,500 people, the income level
reached 4,300,000 VND/person/month. In particular, complete the dossier for
consideration and submission to the Department of Science and Technology
of Thanh Hoa province for recognition as a Science and Technology
Enterprise.
- In 2016, the Board of Directors decided to change the company's
organizational structure. Thereby, the company currently has 06 branches
operating

under;

complete

housing

items

for

low-income

people,

kindergartens for children of officials and employees. Especially in the field
of Science & Technology, the Company is recognized as a Science &
Technology Enterprise; Approved by the Ministry of Science and Technology
01 National Science & Technology Project started in 2017.
- In 2017-2018, the company has 06 branches operating under;
Inaugurated & put into use Workers' housing; Kindergarten according to two
national and international standards Delta Company. Implement the Science
& Technology project approved by the Science & Technology father from
September 2017. Continue to expand Hau Loc branches and other projects at
Delta Company to meet the increasingly strong development needs of the
unit.

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- In 2019, the company merged with 02 other units, An Phat Architecture
and Construction Investment Co., Ltd and Hoang Long Sports Equipment
Co., Ltd. Since then, raising the total charter capital to VND 324 billion and
receiving all production technology, production and business situation of the
two merged units.

- In 2020, due to the complicated situation of the Covid epidemic, many
exported goods were affected, leading to a decrease in the price of goods The
company's development did not proceed as planned.
Current organizational structure chart of the company

 Company profile
- Company name: DELTA Sports Equipment Joint Stock Company
- International transaction name: DELTA SPORT JOINT STOCK
COMPANY

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- Abbreviated name: DELTA Company.
- Address: But Son town, Hoang Hoa district, Thanh Hoa province.
- Phone: 037.3643.725 Fax: 037.3643.724.
- Tax code: 2800702548.
- Email:
- Website: www.deltasport.com.vn
- Established on August 5, 2002.
- Business Registration License No. 2800.702,548, Department of
Planning and Investment of Thanh Hoa province, issued for the 15th time,
dated December 31, 2019
- Charter capital: 324 billion VND.
- Full name of business owner: Mr. Nguyen Trong Tham.
- Manufacturing and trading lines: Producing and trading all kinds of
sports equipment; football of all kinds; sports clothing; labor protection and
fashion.

- Certificate of Science and Technology Enterprise No. 356/DNKHCN,
issued by the Department of Science and Technology of Thanh Hoa province
on May 12, 2016.
1.1.2. Characteristics of business activities of DELTA Sports
Equipment Joint Stock Company
a. Functions and duties of DELTA Sports Equipment Joint Stock
Company
-Function.
Delta Sports Equipment Joint Stock Company has the main functions of:
manufacturing and trading sports balls; production and trading of garments,
fashion, labor protection; manufacturing and trading all kinds of packaging
and printing products. The Company's products are exported to 32 countries
around the world. Through production, business, import and export activities

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to promote economic development, ensure increased revenue, increase
contribution to the state budget, and at the same time contribute to the
construction of new rural areas.
-Mission.
To build and develop an efficient operation, production, business and
market management apparatus; preserve and develop capital sources and
bring businesses to sustainable development.
Building, investing in the development of modern infrastructure and
facilities, applying scientific and technological advances to production in
order to improve productivity and product quality.
Taking care of the material and spiritual life of employees in order to

ensure a stable, harmonious and progressive relationship in the enterprise.
Comply with and strictly comply with the guidelines and guidelines of
the Party, policies and laws of the State. Strictly comply with the Enterprise
Law, Tax Law, Labor Law, Insurance... Strictly comply with financial
reporting and auditing regimes according to regulations of the Ministry of
Finance, the tax sector....
b. Main features of DELTA Sports Equipment Joint Stock Company
Delta Sports Equipment Joint Stock Company is located right near But
Son town, Hoang Hoa district, so all natural and social conditions are
favorable for the sustainable economic development of the Enterprise.
About natural conditions: Hoang Hoa is a coastal plain district of Thanh
Hoa province, belonging to 19.46 degrees to 19.54 degrees north latitude and
105.45 degrees to 105.58 degrees east longitude. The North borders Hau Loc
district; The West borders Thieu Hoa, Yen Dinh and Vinh Loc districts; In the
South, it borders Quang Xuong and Dong Son districts and Thanh Hoa city;
East is bordered by the sea. In which, according to the latest planning, Delta

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Company is located between 03 industrial clusters: Thang Thai CCN; Bac
Hoang Hoa Industrial Park & Hoang Phu Industrial Park.
Regarding social conditions: The total population in Hoang Hoa district
is 226,931 people (as of September 2016), of which the population of working
age accounts for about 60%, this is an advantage in terms of labor resources
for employees. businesses located in the district.
1.1.3. Size and financial structure of the business
Total capital of the enterprise618 billion dong; working capital: 301.875

billion dong; fixed capital: 316,167 billion
1.1.4. Size of the company's personnel
Regarding the organizational structure of the unit: Currently, the
company has 06 operating branches; 03 specialized committees. This
organizational chart is a solid foundation for the independent activities of
specialized units until the vision of 2025 after the units have developed stably
& strongly.
About human resources: Currently, the total number of employees in the
enterprise is 2000 employees. Inside:
- Officers with college and university degrees: 200 people
- Officers with intermediate qualifications: 30 people
- Technical workers: 250 people.
- The rest: more than 1,520 skilled workers in manufacturing sports balls
and garments have been trained at the company
About mass organizations: Currently, the company has a branch of Delta
Sports Equipment Joint Stock Company under Hoang Hoa District Party
Committee established in 2012, with 28 party members so far; The grassroots
trade union of the company under the Hoang Hoa District Labor Union was
established in 2010. The Youth Union of the company under the Hoang Hoa
District Union was established in 2009.

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1.1.5. Business performance of DELTA Sports Equipment Joint Stock
Company
Table 2.2: Business results of the company in 2019-2020
Unit: VND

1. Doanh thu bán hàng và cung
cấp dịch vụ

(138,195,230,
219,053,836,624
357,249,067,039
415)
157,6
86,889,1
(86,731,
2. Các khoản giảm trừ doanh thu
36
39
503)
3. Doanh thu thuần về bán hàng
219,053,678,9
357,162,177,9
(138,108,498,
và cung cấp dịch vụ
88
00
912)
(135,018,753,
4. Giá vốn hàng bán
149,923,171,412
284,941,924,414
002)
5. Lợi nhuận gộp về bán hàng và
69,130,507,5
72,220,253,4

(3,089,745,
cung cấp dịch vụ
76
86
910)
4,900,689,5
6. Doanh thu hoạt động tài chính
6,174,821,102
1,274,131,596
06
15,210,533,0
7. Chi phí tài chính
27,843,969,485
12,633,436,466
19
15,801,332,8
- Trong đó: Chi phí lãi vay
27,073,011,238
11,271,678,351
87
(837,556,
7. Chi phí bán hàng
32,446,472,761
33,284,029,262
501)
(4,235,464,
8. Chi phí quản lý doanh nghiệp
15,486,560,429
19,722,024,682
253)

9. Lợi nhuận thuần từ hoạt động
(471,673,99
7,854,894,6
(8,326,568,
kinh doanh
7)
72
669)
1,534,833,6
10. Thu nhập khác
2,192,256,828
657,423,222
06
110,779,1
(224,361,
11. Chi phí khác
63
335,140,206
043)
2,081,477,6
322,283,0
1,759,194,6
12. Lợi nhuận khác
65
16
49
13. Tổng lợi nhuận kế tốn trước
1,609,803,6
8,177,177,6
(6,567,374,

thuế
68
88
020)
(1,345,892,
14. Chi phí thuế TNDN
453,814,566
1,799,706,673
107)
15. Lợi nhuận sau thuế thu nhập
1,155,989,1
6,377,471,0
(5,221,481,
doanh nghiệp
02
15
913)

-39%

-39%
-47%
-4%
385%
120%
140%
-3%
-21%
-106%
233%

-67%

-80%

-82%

(Source from the financial statements for the year 2019-2020 of DELTA
Sports Equipment Joint Stock Company)
Through the above analysis, we can see that the company's operations
are on a downward trend in the current difficult economic conditions. Profit

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after CIT in 2020 is more than 1,155 million VND, down from 2019 is more
than 5,221 million VND, corresponding to a decrease of -82%
In 2020, net profit from business activities reached more than VND
471,673 million, down more than VND 8,326 million compared to 2019,
corresponding to a decrease of -106%
Cost of goods sold in 2020 decreased by about VND 135,018 million
compared to 2019, corresponding to a decrease of -47%. The decrease in cost
of goods sold is larger than the decrease in net revenue from sales, causing the
gross profit on sales to decrease from 72,220 million dong in 2019 to 69,130
million dong in 2020, an additional decrease of 3,089 million VND,
corresponding to a decrease of -4%
Financial revenue contributed the most in total revenue, in 2019 was
1,274 million VND, increased to 6,174 million VND in 2020, equivalent to
385%

Financial expenses in 2020 are VND 27,843 million, an increase of more
than VND 15 million compared to 2019 respectively, an increase of 120%.
Selling expenses dropped sharply from VND 33,284 million to VND 32,446
million, down -3%. Business administration expenses in 2020 compared to
2019 decreased by 4,235 million VND, corresponding to a decrease of -21%.
All kinds of expenses dropped sharply in 2020.
Other profit in 2020 compared to 2019 has decreased by nearly (1,759)
million dong. Other profits also affected the total pre-tax accounting profit of
the enterprise
From the table we can see that in 2020, businesses need to have
appropriate policies and management methods to promote and increase net
profits for businesses, thereby making great strides in business activities.
business, bringing in great revenue.

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PART 2: LEARN ABOUT THE MARKET AND DEVELOPMENT
ORIENTATION OF ENTERPRISE
2.1 Situation of the market at DELTA . Sports Equipment Joint
Stock Company
2.1.1. Business capital situation and business capital of DELTA Sports
Equipment Joint Stock Company.
2.1.1.1. Asset situation and asset structure at DELTA Sports Equipment
Joint Stock Company.
Table 2.3: Changes in business capital in 2020
(Unit: million VND)

(Source: Summary of financial statements for 2019 and 2020 – Delta
Sports Equipment Joint Stock Company)
From the table above, it can be seen that the company's assets fluctuate
as follows:
The purpose of the study and assessment of the asset structure, the
proportion of investment in each part of the Company's assets is the basis for
assessing the rationality in the use of capital, from which it is possible to

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propose measures to improve efficiency. capital use through the management
of investment structure. The structure of the Company's assets is shown in
Table 2.3
Stemming from the characteristics of the real estate business and the
production and sale of sports equipment in general, in the asset structure of
Delta Sports Equipment Joint Stock Company, long-term assets always
account for a large proportion of the total assets. total assets. From the data, in
2018 long-term assets accounted for 71% of total assets, in 2019 accounted
for 51% and in 2020 this proportion increased slightly to 57%. Although in
the past 3 years, there has been a fluctuation in the proportion of long-term
assets, decreasing and then increasing, it can be seen that the proportion of
long-term assets in total assets of the company over the years has been at a
relatively reasonable level. showing the characteristics of the real estate
industry, the production and sale of sports equipment is a long-term asset that
accounts for a large proportion compared to short-term assets in the total
assets of the Company.
Considering the Company's short-term assets, if in 2018 it accounted for

4%, it would increase to 7% in 2019 and decrease to 4% in the total asset
structure in 2020. In the structure of short-term assets, receivables tend to
decrease, from 2% in 2018 to 6% in 2019 and down to 1% in 2020; This
shows that the company has made great efforts in debt collection, but it also
reflects the fact that the company has difficulty in selling.
Table 2.3 shows that in the years 2018 - 2020, the Company was also
interested in investing in fixed assets to increase production capacity,
specifically in 2018 fixed assets were VND 467,465 million, in 2019 it was
VND 173,787 million. VND and especially in 2020, fixed assets will increase
to VND 337,721 million.

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In terms of short-term assets, there are also certain fluctuations,
specifically as follows: If in 2018 short-term assets were only VND 270,674
million, in 2019 it decreased slightly to VND 263,381 million and in 2020
increased to VND 325,399 million. The proportion is also increasing in the
company's asset structure, from 29% in 2018 to 49% in 2019 and decreasing
to 435 in 2020.
2.1.1.2. Business capital situation
Table 2.4: Changes in business capital in 2020

(Source: Summary of financial statements for 2019 and 2020 – Delta
Sports Equipment Joint Stock Company)
Table 2.4 shows that the Company's capital is formed from two basic
sources: liabilities and owners' equity. In which, liabilities accounted for a
small proportion of the Company's total capital in the past 3 years.

Specifically, liabilities in 2018 were VND 567,409 million, accounting for
61% of total capital, VND 268,227 million in 2019 with this proportion of
50% and in 2020 the Company's liabilities were VND 429,027 million with a
ratio of VND 429,027 million. the corresponding weight is 57%. It can be
seen that in 2018, the increase in liabilities was mainly due to an increase in
loans and short-term debt. When considering the correlation between the
increase in the value of short-term assets with the increase in short-term loans,
it shows that the Company has used this capital to invest to make long-term

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assets increase, this also comes from the common characteristics of
companies operating in the real estate industry, manufacturing and
distributing sports equipment. In addition, the Company needs to consider
how the increase in loans and long-term debt while the size of the capital
source in 2018 will increase will affect the implementation of investment
projects that the Company is implementing or not. there is no decision to use
appropriate capital mobilization methods to meet capital needs for production
and business activities in the coming years.
From Table 2.4, we also see a continuous increase in equity, increasing
from VND 358,563 million in 2018 to VND 270,377 million in 2019 and
VND 325,156 million in 2020.
In which, the Company's profit after tax increased over the past 3 years
due to the efficient production and business activities of the Company,
bringing high profit levels, which contributed significantly to supplementing
capital for the owners and the fund. investment in development to invest in
expanding production scale. At the same time, other funds were also added to

improve the material and spiritual life of employees in the Company, make
employees feel secure and work enthusiastically to improve labor
productivity.
2.1.1.3. Corporate sponsorship model
To evaluate whether the policy of raising capital to finance the
company's assets is reasonable or not, we analyze the structure and
fluctuations of capital over time of capital mobilization and use of the
company through:
* Structure and change of capital over time in 2020

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Unit: million dong

(Source: Summary of financial statements for 2019 and 2020)
We can see that both the beginning and the end of the year the company's
natural resources have a clear change. If at the beginning of the year, NWC >
0, ie the formation of short-term assets is compensated by short-term capital
and long-term capital, then at the end of the year NWC < 0, which means that
the source of long-term asset formation is partially compensated by capital.
long-term. Using this financing model, the company uses a lot of capital
regularly, making the cost of capital higher, the use of capital will become less
flexible. However, this reflects the true meaning of a real estate business,
manufacturing and distributing sports equipment when long-term assets
always account for a large proportion and are all offset by long-term capital.
We see that at the end of the year, short-term capital is used to finance all
short-term assets and a part to finance long-term assets; while long-term

capital is used entirely to finance TSDH. The entire teaching assets are used
to finance the teaching assets, while the majority of the current assets are
financed by the banks. Besides that:

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Regular working capital at the beginning of 2020 = Short-term assets at
the beginning of the year - Short-term capital at the beginning of the year =
VND 41,520 million.
Regular working capital at the end of 2020 = Short-term assets at the end
of the year - Short-term capital at the end of the year = (9,424) million VND.
Thus, at the end of the year, the Company's NVLDTX is negative.
Small-town laborers create a level of insecurity for businesses in business,
making the company's financial status uncertain. Therefore, the company
needs a financial plan from 2021 to overcome this situation.
2.1.2. Status of capital sources of Delta Sports Equipment Joint Stock
Company
a. Working capital structure
To assess the situation of working capital management at the company,
first of all, we need to have an overview of the labor allocation structure.
The structure of VOL is shown in the following table:
Table 2.5: Structure and movements of working capital at the end of
2020
Unit: million VND

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(Source: Summary of financial statements for 2020 – Delta Sports
Equipment Joint Stock Company)
Figure 2.1: Working capital structure chart:

At the end of 2020, the total working capital was VND 325,399 million,
accounting for 43% of total assets, in 2018 it was VND 270,674 million,
accounting for 29% and in 2019 it was VND 263,381 million, accounting for
49%. The proportion of working capital has changed but not much and
accounts for a relatively high proportion in the structure of total assets. This is
also understandable because for a real estate business and manufacturing and
distributing sports equipment, the proportion of fixed assets must always
account for a larger proportion.
The above table clearly shows the structure of working assets - working
capital of the company at the beginning and the end of 2020. In the structure
of short-term assets, inventory accounts for a higher proportion, followed by
short-term receivables, cash and cash equivalents, short-term receivables,
other short-term assets. Until then, let's analyze the indicators in the shortterm assets section:

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- Cash and cash equivalents: If in 2018 it was 6,185 million VND, in
2019 it increased to 6,313 million and in 2020 it increased strongly to 2,666
million VND, Although cash and cash equivalents increased strongly, the rate
The weight of cash and cash equivalents in total assets still accounts for a

small proportion.
- Short-term financial investments: not incurred
- Short-term receivables: there is a strong fluctuation. If in 2018, it was
58,574 million VND, accounting for 6%, by 2019 it was 89,211 million VND,
accounting for 17% and in 2020 it was 61,569 million VND, accounting for
8%.
- Inventories account for a large proportion because this company trades
sports equipment: from VND 126,064 million in 2018 to VND 151,272
million in 2019 and VND 250,267 million in 2020.
- Other short-term assets: decreased from VND 79,851 million in 2018
to VND 10,897 million in 2020.
b. Cash management situation (VBT)
Currently, the company is maintaining the VBT management policy as
follows:
- Regarding the determination of the required cash reserve: the company
has not applied a specific method to determine the target cash balance. How
much cash to reserve is decided by the Board of Directors with the advice of
the chief accountant based on management experience and a clear
understanding of the company's cash spending needs over the years, on
projects future business plans. The fact shows that despite reducing the size of
reserve money, during 2020, the company rarely falls into a shortage of
money to pay for arising needs. This partly shows the ingenuity in money
management of the management.
- Regarding the management of cash receipts and payments: the
company has taken measures to manage revenue and expenditure such as
separating the work of the accountant and the treasurer; all the money spent

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