Báo cáo thực tập tiếng anh INTERNSHIP COMPANYINSTITUTION MAO KHE COAL COMPANY VINACOMIN

VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: MAO KHE COAL COMPANY - VINACOMIN

Address: Dan Chu - Mao Khe – Đong Trieu district – Quang Ninh province

Supervisor: PhD Pham Duc Cuong
Student’s full name: Do Thi Thuy Quyen
Student’s ID: 11071559
Major: International business
Class: IB2012B

Ha Noi, …………………………………………………………


LETTER OF THANK
To: Teachers in International School- Vietnam national university, Ha Noi!
Director and all of Staffs of Accounting Department in Vinacomin-Mao Khe
Coal Company in Quang Ninh!
Internship period is one of the most important events of senior year students and the
most difficult challenge of senior year students. We are students who lack of not
only experience but also knowledge and skills. Therefore, this graduate internship
report cannot finish without the help from everybody.
Firstly, I would like to express my deepest gratitude to teachers, friends and family’s
care in the past four years. I am grateful to you for your help and transfer of
precious experience, which will prepare us for knowledge to have ability of facing

to difficulty in the future life.
Secondly, I would like to say thank you to Accounting Department in Mao Khe
Coal Company - Vinacomin in Quang Ninh especially to Mrs. Cao Thi Thu Dung –
Deputy of Accounting Department for their dedicated guidance and heartedly
training, which contributed a lot to my working experience and learning progress.
Last but at most, I would like to send my greatest thankfulness for PhD. Pham Duc
Cuong- my supervisor who teaches and supports me a lot during my internship.
With his kind helps and knowledge, I may have chances to overcome difficulties
and contributed to Mao Khe Coal Company. Thank you a lot, PhD. Pham Duc
Cuong.
I wish my teachers have health and success in the life. At the same wish of staffs at
Accounting department - Mao Khe Coal Company a good health and achieved great
success in their work.
Sincerely
Do Thi Thuy Quyen


List of table
Table 1.1: Statistic of assets in 2013 – 2015 of Mao Khe Coal Company
Table 2.1: Capital structure
Table 2.2: Report of fixed capital of Mao Khe Coal Company
Table 2.3: Report of inventory Working capital of Mao Khe Coal Company
Table 2.4: Investment structure in current assets of Mao Khe Coal
Table 2.5: Fixed assets
Table 2.6: The effectiveness of using fixed capital in the Company
Table 2.7: Some account balances at the end of the year

TABLE CONTENT

PART 1: OVERVIEW OF VINACOMIN– MAO KHE COAL COMPANY
1.1 General information:

Name: Vinacomin- Maokhe Coal Company
International transaction name abbreviations: VMKC
Headquarter: Dân Chủ - Mạo Khê – Đông Triều – Quảng Ninh
Legal form: State owned enterprise
Phone number: 033 3871 240 Fax: 0333871375
Website: thanmaokhe.vn
Representative: Director Pham Van Minh
1.2 History and development
Mao Khe Coal Company belonged to the Vietnam National Coal-Mineral Industry
Holding Corporation Limited (Vinacomin), located in the Dong Trieu district,
Quang Ninh Province. Previous month 8-1945 it was called Mao Khe Mine. After
the peace was restored, it called Mao Khe Coal Mine.
November 15, 1954 Mao Khe Coal Mine was founded (as a member of the Uong Bi
Coal Company)
In 1996, Mao Khe Coal Mine was founded as a State enterprise (Decision No.
2605 / QD-TCCB dated 09/17/1996 of the Minister of Industry)
From October, 2001 renamed to Mao Khe Coal One Member Limited Liability
Company (Decision No. 405 / QD-BOD BOD dated 01/10/2001 of Vietnam Coal
Corporation)
From December, 2005 renamed to Mao Khe Coal One Member Limited Liability
Company - TKV (Decision No. 2461 / QD-Board dated 08/11/2006 of the Board
with TKV)


From May, 8, 2010 (implementing Decision of the Board of Directors of Vietnam
National Coal-Mineral Industry Holding Corporation Limited) renamed to Mao Khe
Coal One Member Limited Liability Company - Vinacomin.

From August, 01, 2013 founded branch of Vietnam National Coal-Mineral Industry
Holding Corporation Limited - Mao Khe coal Company – TKV (called the Mao
Khe coal company - TKV)
Mao Khe Coal Company is an affiliated member of Vietnam National Coal-Mineral
Industry Holding Corporation Limited, has a history of over 174 years of mining.
Compared to the current mines, Mao Khe Coal Company has large reserves and
large-scale production. The company is a complete production line from the stage to
the stage of capital construction of transport operators, sorting and sale of products.
Undergoing 62 years of rehabilitation and development (1954-2016) nowadays, the
company has a staff of 10,768 employees who are in charge of manufacturing and
trading of coal. By the effort, the spirit of self-reliance combined with the
appropriate direction, manager and employees of the company had found his own
direction to promote the development of production and business.
1.3 Vision and mission
•

Core values is to take quality of human resources is central to development;
quality of products and services is the business principle; image and prestige
are invaluable assets; the satisfaction of customers, partners is business
objectives; harmonious combination between: economic interests - political -

cultural - social
• Vision:
 To ensure production and business efficiency and safety with high economic
value
 Becoming rich and powerful corporations and diversified development of
products, goods and services
• Mission: Maintaining stable development, mining of coal and minerals must
be associated with environmental protection. Corporations balance available

resources to invest a reasonable technological innovation, not spread, while
still ensuring the modernization goals of technology ensure safety in
production, strict governance and save resources.
1.4 Products and Service
Mao Khe Coal Company is a large enterprise and a subsidiary of Vietnam national
coal-mineral industry holding corporation limited, independent accounting. Current
mining production of raw coal is more than 1,680,000 tons / year. These products of
the Company appropriately provide to the industrial production sector and civil
service.
Mao Khe Coal Company coal production line has a relatively complete from their
exploitation, transport and sorting to the step of loading the product consumption
assurance standards prescribed by the State.
Currently in production lines of the company has been mechanized most of the
sewing, stitching own furnace coal mining craft fair is also associated with drilling
and blasting.
Company annual investment, expand production and application of scientific and
technical advances and new technologies at minus 80 and expanded investment at
minus 150.
* Business activities of the company include
- Mining and processing of coal consumption.
- Construction of the mine
- Manufacturing and trading of construction materials.
- Repair of mining equipment, transport and manufacturing mechanical products.
- Organizing fun activities, entertainment, culture and sports.


- Petrol station
- Production and business Non Dong mineral water
- Mining, business water

* Market and potential customers
Product: Coal
•
•

Main market: domestic market Quang Ninh, foreign market China
Potential customers: Mao Khe, Cam Pha thermal power plans

Services: Organizing fun activities, entertainment, culture and sports; services of
water, petrol station
•
•

Main market: domestic market Dong Trieu area and vicinities
Potential customers: local people

Services: Repair of mining equipment, transport and manufacturing mechanical
products
•
•

Main market: domestic market Quang Ninh and some provinces vicinities
Potential customers: Dong Bac Coal Company, Tan Viet Bac Limited

Liability Company
1.5 Organizational structure
1.5.1. The organizational structure of the management
The company operates follow to model of parent company and subsidiary, in which
the parent company is the Vietnam National Coal-Mineral Industry Holding
Corporation Limited.

Due to the characteristics of company's activities in the field of exploration,
exploitation and processing of minerals; wide operating areas, dispersed, many
clues, managerial model of companies is the model of council members and
supervisors.


Supervisors and Director are appointed and dismissed by council members of
Vinacomin.
Supporting to Director has deputy directions, chief accountant and specialized
departments.
1.5.2 Organizational Chart and descriptions of function and mission of
some departments
KCM Department
•
•

Function: manage technology of mining
Mission:
 Planning of technology prepare for mining
 Collecting data to establish mining record
 Managing technical norms and criteria

TGM Department
•

Functions: give advice to the Manager in the work of ventilation, mine
gas controlling; drainage and anti-water platform in the mine to ensure

safety, efficiency production.
• Mission:

 Planning of ventilation, mine gas controlling; drainage and antiwater platform
 Organization, implementation of the control, management gas and
drainage in the mines
design,

 Organizational

appraisal

wind

network

diagrams,

ventilation and drainage
 Checking the related works: ventilation, mine gas controlling;
drainage and anti-water platform
KCM Department
•
•

Function: manage technology of mining
Mission:
 Planning of technology prepare for mining
 Collecting data to establish mining record


 Managing technical norms and criteria

TGM Department
•

Functions: give advice to the Manager in the work of ventilation, mine gas
controlling; drainage and anti-water platform in the mine to ensure safety,

efficiency production.
• Mission:
 Planning of ventilation, mine gas controlling; drainage and antiwater platform
 Organization, implementation of the control, management gas and
drainage in the mines
 Organizational design,

appraisal

wind

network

diagrams,

ventilation and drainage
 Checking the related works: ventilation, mine gas controlling;

drainage and anti-water platform
Surveying & Geology Department
•

Functions: to advise the Manager about the work of surveying, geology and

•

drainage outside the mines
Mission:
 Organizing and preparing plans, methods, document about
surveying and geology serving mining and manufacturing
 Forecasting about reserves and quality of coal
 Organization management of geodetic surveying, mapping

resource boundaries, mining maps, cadastral maps
 Perform tasks in surveying underground and ground;
measurement of the volume of product in storage
 Giving measures to prevent violations of hydrogeology,
construction, water cracks, air ejector ... Analysis of trouble
finding the causes subjective and objective to propose
corrective solutions
Investment & Environment Department


•
•
•

Managing investment in working basic construction and environment
Planning about methods of investment and performing to invest
Building, fixing, improving the infrastructure to serve production and
business activities

Office
•

Function: Managing the work of the interior, synthetic administrative,

receptionist, cultural and sports ...
• Mission:
 Performing the work of the interior, synthetic administrative,
clerical, store…
 Establishing working rules and guiding and directing the
departments in the company to follow
 Holding the meeting
 Managing cars and other transportations of the company
 Fixing and buying supplies for offices in the company

Human resource management
•
•

Function: organizing, training, developing human resource
Mission:
 Organizing the structure of the company
 Management staff and employees, building regulations
decentralized management, functions, duties and powers of
staff positions, clearly defining roles and responsibilities of
each level of employees in Public company. Reviews, reviews
staff annually.
 Construction plans for the planning, training employees in the

Company uses in accordance with the Regulation on
Management of the Company CB.
Accounting department

•

Function: implementation of statistics, accounting, finance to ensure
the capital for production and business activities of the Company
under the provisions of the Law on Accounting, manual mode of the


State

and Vietnam National

Coal-Mineral Industry

Holding

Corporation Limited
• Mission:
 Planning of production and business for the company about financial,






accounting fields, cost, benefit and capital
Planning to manage and use the capital effectively
Prepare the statistics, financial, accounting reports
collecting, controlling documents
inspection and supervision of transactions in the company
evaluate accounting information and data to give the solutions serving

managing, making decision of Director

DIRECTOR
DEPUTY DIRECTION
(Technical) Investment, Environment)
SUPERVISOR
KCM Department
DEPUTY DIRECTION
(Cost, Labor, Salary, Life, Health)
DEPUTY DIRECTION (Production, Consumption, Security)
CHIEF ACCOUNTANT
DEPUTY DIRECTION (Electrical, Mechanical, Transport, Training)
DEPUTY DIRECTION (Safety, labor insurance)
TGM Department

Surveying & Geology Department


Investment & Environment Department

Gieng Day Board of management

Planning Department

Purchasing Department

Human resource management

KTP Department

Medical stations

DK Department

Security & Observing Department

KCS – Consumption Department

Accounting Department

CV Department


Office of company

Safety & Labor insurance Department

Organizational Chart


1.6 Production result over periods of time
The first period of 5 years from 1954 to 1959, the quantity of coal had exploited just
only 280,000 tones / year.
In 1960, the output of Mao Khe coal mines reached 200,000 tons / year.
From 1970 to 1980, the average yield of the mine reached 500,000 tons / year.
In 2001, Mao Khe Coal Mine reached capacity 1 million tons / year.
In 2014, 1.95 million tons raw coal was produced, reaching 103% of the plan; 1.64
million tons of consumption, turnover reached 2,000 billion, 104% of the plan.
In 2015, produced nearly 1.84 million tons of raw coal, consumed 1.55 million tons,
turnover reached 1.900 billion

Table 1.1: Statistic of assets in 2013 – 2015 of Mao Khe Coal Company
Unit: VND
Target

2013

2014

2015

1. Fixed assets

717,092,000,000

933,122,000,000

636,728,000,000

2. Current assets

313,930,000,000

371,040,000,000

427,984,000,000

1,031,020,000,000

1,304,160,000,000

1,064,710,000,000

3. Total assets


PART 2: REPORT OVER COMPANY
2.1. Overview of production and business activities
2.1.1 Business results of the company in 2015 and plan for 2016
In 2015, the collective of officials and employees of the Mao Khe Coal Company Vinacomin has constantly striving efforts to implement production, basically
exceeded the planned targets of business collaboration with Industry Corporation
Vietnam coal Mining.
Production and business results in 2015 the company achieved and plan for 2016
Title
1.
2.
3.
4.
5.

Coal virgin total
Coal consumption
Total revenues
Profit:
Average income

2015
2016 (plan)
1.718 million tons
1.850 million tons

1,481,347 tones
1.557 million tons
1,775,635 million VND
1,901.821 million VND
25 billion VND
27 billion VND
8,528,360 VND / person / 11.3 million VND
month
person / month

/

2.1.3. Overview of production and business activities
Production activities
A total of 21 factories of producing, including 13 coal mining factories, 4 digging
tunnel factories, 03 transportation factories and 01 Emergency &Ventilation factory.
Basically the factories made good tunneling meters youth academy plans to ensure
sufficient production area meet for exploitation.
Logistics
In 2015, transport factory were operating transportation to meet production
requirements.
Units: Mechanical, Electricity and Water, Construction and Life-Services in 2015
has made great efforts in the management of production and finished workload
allocation plan.


+ Mechanical: The total value of the implementation in 2015 of 50 billion / 40
billion to reach 125% accountability contract year.
+ Construction: The total value of implementation is 26 billion in 2012/24 billion
reached 108% responsibility contract year.

+ Electric and Water: perform operational tasks power supply system in and out of
the oven.
+ Life-Services: Organization serving the diet ensures qualitative and food safety,
the general implementation of the 2015 value of 56 billion / 50 billion to reach
112% accountability contract
Consumption
In 2015, the company has plan in flexible working coal consumption.
Results coal consumption: 1,481,347 tons / 1,395,000 tons reach 106% of the plan.
Due to the Group's overall consumption to decrease coal export plan so the
company has actively organized separating coal from raw coal 5 in vacuum
furnaces to meet customers for consumption in Pha Lai. During the year the
Company has actively organized the screening 7a coal inventories last year to mix
with bran 6a, satisfy consumer requirements for Mao Khe thermal power plants,
coal inventories fell. The rate fell bran 6a 3.43% implementation of the plan
assigned group, bran Ratio rose to 5.86% 6b implementation of the plan assigned
group.
Finance and accounting
- In 2015 the situation of coal inventory increased, the average is 117 billion, at that
time it rise up to 181 billion have caused stagnation billion in working capital, affect
the rotation of short-term capital.


- The company has close relations with the credit institutions to arrange sufficient
funds for the needs of business, construction, and payments to the state, superiors,
customers and employees. Total capital disbursed in 2015 is 209.582 billion.
- Score capital preservation in 2015 is guaranteed.
- Score liabilities on equity are lower than specified.
- The company has fully utilize the rotation of capital is not to overdue cases, strict
implementation of the terms of payment have been signed with partners.
Managing costs

Timely deployment documents and measures to concretize plans produced through
a ceremony to launch the first competition and contracting responsibilities between
the director and the head of the unit.
- To coordinate the technical building blocks allocation plan 4 quarter production
plan consistent allocation proportional output as Group guidelines to reduce
pressure production for the fourth quarter to prepare for next year production area .
- Has timely decisions issued contracting costs in 2012 for the department heads
and the professional technical workshops to fulfill the work of planning, cost
management
2.2 Reality of capital management activity in Mao Khe Coal Company, 2013

-2015
2.2.1 Fixed capital


Table 2.1: Capital structure
Unit: VND
Targets

2013

2014

2015

1. Fixed assets

717,092,000,000

933,122,000,000 636,728,000,000

2. Current assets

313,930,000,000

371,040,000,000 427,984,000,000

3. Total assets

1,031,020,000,000

1,304,160,000,000

1,064,710,000,000

4. Fixed assets / Total assets

69.6

71.5

59.8

5. Current assets / Total
assets

30.4

28.5

40.2

Look at the table 2.1; the proportion of fixed assets / Total assets has a fluctuation
when increasing from 2013 to 2014 and decreasing from 2014 to 2015. In 2013 is
69.6%, 2014 is 71.5 %, 2015 is 59.8%. Investment in fixed assets in the period of
time from 2013 to 2015 is higher than investment in current assets that means fixed
assets play a important role in production and business processes of Mao Khe Coal
Company. The investment gap between fixed assets and Current assets in 2014 is
large, investment in fixed assets takes 71.5% but this gap in 2015 this gap has
narrowed significantly when the investment rate is 59.8% for fixed assets and
40.2% for current assets.


Table 2.2: Report of fixed capital of Mao Khe Coal Company
Unit: VND

Targets

Original price of
Fixed assets (VND)

Depreciation
(VND)

Residual value
(VND)

2013

1,113,770,000,000

421,130,000,000

692,634,000,000

2014

1,423,440,000,000

525,480,000,000

897,995,000,000

2015

1,265,120.000,000

663,540,000,000

601,575,000,000

Year

Table 2.2 shows the fluctuation of fixed assets. From 2013 to 2014, Original price
of Fixed assets increases by 309,670,000,000 VND (from 1,113,770,000,000 VND
to 1,423,440,000,000 VND). In 2013, Original price of fixed assets decreases to
1,265,120.000,000 VND.
Depreciation of fixed assets is to decrease the use value and value or decrease the
value of fixed assets. In the course of engaging in production and business
activities, are most affected by many different causes that fixed assets were

eventually wear out. There are 2 types of fixed assets ‘depreciation: tangible and
intangible depreciation.
2.2.2

Working capital
Table 2.3: Report of inventory Working capital of Mao Khe Coal
Company
Units: billion VNĐ
Year

Working capital

2013

313,930

2014

371,040

2015

427,984


(Source: Balance Sheet in 2013, 2014, 2015)
Table 2.3 shows the situations of Working capital of Mao Khe Coal Company
increase continuously. Compared with 2013, working capital in 2014 rises by
57,110,000,000 VND; 2015 rises by 56,994,000,000 VND.

Table 2.4: Investment structure in current assets of Mao Khe Coal
2012

2013

2014

201
5

Items
bil.
VND

%

bil.
VND

%

bil.
VND

%

bil.
VND

%

1. Cash

68,13

41,3

20,59

6,6

5,64

1,5

68,96

16,1

2. Account
receivable

38,17

23,2

242,15

77,1

257,28

69,3

250,29

58,5

3. Inventory

56,45

34,2

50,75

16,2

105,59

28,5

96,46

22,5

4. Other current
assets

2,19

1,3

0,44

0,1

2,53

0,7

12,27

2,9

164,94

100

313,93

100

371,04

100

427,98

100

Total
current
assets

Table 2.4 shows the structure of investment in the current assets of the company.
Cash: Includes cash in safes, cash in transit, bank deposits and other cash
equivalents. Money reflects the solvency of the enterprise, reflected a part on the
work of mobilization and using of corporate funds. In 2012, cash takes the biggest
proportion in the structure of current asset 41.3%. However it reduces strongly over
the year 2013, 2014, 2015 in low level is 6.6%, 1.5%, and 16.1% respectively. 2011


was the year in which the share of cash in the structure of current assets at very low
levels and the lowest in recent 4 years.
Account receivable: includes account receivable from the customer, prepaid for
sellers and other charges. Value of account receivable shows the situation of
production and business capital that being held by customers and others. Accounts
receivable hold the large proportion in current assets from 2013 to 2015, but having
diminutive trend, respectively 77.1%, 69.3%, 58.5% and lowest in 2012 is 23.25%.
Always occupy high proportion in structure of current assets; accounts receivable is
one of the causes of the decline in using capital efficiency and reduces the
profitability of the company.
Inventories: These are items accounted for a proportion of the total current assets
relative of Mao Khe Coal Company. The period of time between 2012 and 2015,
inventories respectively account for 34.2%; 16.2%; 28.5% and 22.5%. This is
suitable with the characteristics of the production and business of the company,
there are always huge reserves, but it caused significant disadvantage for the
company's operations because it makes capital accumulation, not spin, causing
waste cost of capital.

On average in recent years, current assets tend to rise. However, accounts receivable
and inventory is accounted for too great proportion. These are factors that cause
financial difficulties for the company. Initially, the company should take steps to
withdraw capital to supplement the business capital, improve production efficiency.
2.2.3 Reality
2.2.3.1 For fixed capital management
About depreciation of fixed assets
Company performs the regime of deducting and using the depreciation according to
the current regulations of the Ministry of Finance (Decision 166/1999 / QD-BTC
dated


30/12/1999 of the Ministry of Finance and be replaced by Decision 206/2003 / QDBTC dated 12/12/2003), ensuring sufficient to offset the depreciation of tangible
and amortization of intangible assets.
For assets are invested with the medium and long term loans, in the repayment
period, the company may be registered with the financial authorities to reduce the
time depreciation for repayment accordance with loan agreements and to ensure no
loss of business results.
The total of accumulated depreciation of fixed assets has been used to proceed of
reinvestment, renew assets; development of production, debt repayment and
investment outside. However, accumulated depreciation of the Company may also
be mobilized by Group to serve the focusing investment needs of the Group except
for the depreciation of assets belong to loans that has not paid yet. The deposit will
be made in the form of internal loan interest payments and it is not higher than the
charges for use of State capital at the same time.
Like the Group, and other members, when the company uses the basic depreciation
capital, types of capital and fund to invest in basic construction, the Company must
comply with the regulations of the State of investment management and
construction.
When the damage happen such as loss of supplies and capital, breaking or reducing

the value of assets, reducing intangible value, both the members and the Group need
to set up a council to determine the cause, extent of the loss and treatment plans to
report to the Board of directors for approval, will handle the level prescribed by the
State and the corporation.


Table 2.5: Fixed assets
Unit: billion VND
number

Title

I

Tangible fixed assets

1

Original price

2

3

II

III

2013

2014

2015

Beginning of the year

752.17

836.86

1066.10

Increase

84.69

229.24

174.95

Ending of the year

836.86

1066.10

1241.05

Beginning of the year

339.73

420.94

525.2

Increase

81.21

104.26

138.1

Ending of the year

420.94

525.2

663.3

Beginning of the year

412.44

415.92

540.9

Ending of the year

415.92

540.9

577.75

Accumulated depreciation

Residual value

Fixed assets of financial
leasing
Original price

0

0

0

Accumulated depreciation

0

0

0

Intangible fixed assets
Original price

0.22

0.22

1.09

Accumulated depreciation

0.19

0.22

0.24

Residual value

415.95

540.9

578.6

Original price

837.08

1066.32

1242.14


Through the table of fixed assets we see that the Mao Khe Coal Company has
focused on investment in innovative equipment and technology to boost production
and business. In 2013 the investment in capital construction completed and handed
over to increase their cost of fixed assets is 84.69 billion VND. To 31.12.2013 the
remaining value of the fixed assets on table summarizes the Company's assets is
415.95 billion VND and by 49.7% of the fixed price. Cost up to 31.12.2014 was
1066.10 billion VND, an increase of 229 billion compared to 2013. The remaining
value at the time of 31.12.2014 was 540.9 billion, and by 50.7% at cost. To
31.12.2015, the original price of fixed assets is 1242 billion, an increase of 176
billion compared with 2014; the Residual value is remaining 578.6 billion, equal to
46.6% of the original price.
The table above shows that the investment in asset purchases by the Company has
focused on procurement of machinery and equipment to increase mining capacity
and the capacity of other industries, to meet the needs of production process and
improve competitiveness in the process of integration and development. We can see
the company has been very focused on investment, purchase of fixed assets, the
implementation of large projects that has great significance for the company's
business in recent years such as first-line project of coal conveyor belt factory from
port 56 to Ben Can port, operated from 8/2011, coal supply system project for Mao
Khe Thermal power plant and project of mining at depth below the negative 150
meter to negative 400 meter. For better and effective exploitation of resources, the
Company needs to further strengthen the investment in capital construction,
focusing on financial leasing forms of investment in machinery and equipment,
vehicles, production lines modern technology, make use of financial leasing capital,
improve efficiency of fixed capital.
With the basic construction investment increased sharply in recent years, speed

large investment focus in 2013, 2014, the remaining depreciation have not kept pace


with the bank payment, leading to the total payment is larger than the depreciation.
According to the development trend and investment in the coming years still
maintained at this situation that could lead to financial imbalance. To remedy this
situation, companies need to increase level of depreciation of fixed assets
corresponding to loans had to repay. Currently, the company has been initially
implemented to curb this situation. The level of depreciation of fixed assets of the
Group in recent years has been improving steadily; the average depreciation rate of
the company has increased from 12.1% in 2013to 12.8% in 2014.
•

About the lease, pledge, mortgage, sale or liquidation of fixed assets

For fixed assets, the company has the right to lease, pledge, mortgage assets under
the management of the company to re-invest, innovate technology assets excluding
leased, borrowed, kept or mortgagee. With the rental property, go ditch if the lessor,
lender may agree Company sublease on the principles of efficiency, conservation
and development of the capital.
For the fixed assets over a long period of use, old and outdated poorly, companies
should actively liquidating assets to recover capital, enabling reproducible resources
fixed assets, serving production and business.
For those properties that the original price of 5 billion, the company wants to be
liquidated, should report to the Corporation to conduct the appraisal, inspection and
liquidation. Meanwhile, the Council of the Corporation liquidated checks, and
general director of the liquidation decision.
For those assets have not recovered enough capital, the general director is
determined to liquidate assets residual values below 60% and the remaining value to
1 billion. The assets residual value of 60% and the remaining value tren1 billion, the

General Director reports to the Board of Management decided.
Assets upon liquidation and sale of up to liquidated Council to determine the
technical condition and value, widely reported on the sale of assets and held a