ACADEMY OF FINANCE

FACULTY OF CORPORATE FINANCE

DEPARTMENT OF CORPORATE FINANCE

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Credit Class:………………………. Class:……………………….
Ordinal number: ………………… Exam Room ID:…………...
Examination Date:……………… Time: ………………………

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Exam form: Case study Report

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Year 2021
 OPENING SECTION
NamViet is gradually building a socialist-oriented market
economy. The more the market economy develops, the more diverse and complex
the credit relationships become. It can besaid that debt is inevitable in
production and business activities of enterprises. Reaeized debt is the property
of the enterprise, the fact that the capital of the enterprise is misappropriated. More or
less remable debt, long or short appropriationtime on the one hand affects the
business capital turnover, on the other hand affects the payment situation and
profitability of thebusiness. Remables instricable without strict management and
control measures may result in prolonged capital appropriation, overdue payments or
bad debts causing great damage and losses to enterprises. In many cases, increased
debt losses impair the competitiveness of businesses, even leading to the risk of
bankruptcy
Therefore, today I would like to choose the topic "
Rea remly collection at Song Hong Garment Joint Stock Company" to clarify the
importance and essentiality of the revenue in the enterprise.

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 PART 1: GENERAL REASONING ISSUES ABOUT CORPORATE
RESLIABILITY MANAGEMENT

1.1 General reasoning issues about re-revenue debts of enterprises:

1.1.1 Concept and contents of remance debts of enterprises:
Reaeized debt is the amount of assets of the enterprise but is appropriated by
other organizations, groups or individuals that the enterprise must recover. These
assets are in developments in the business activities of the enterprise.
As one of the important capital components, accounting for a high proportion
of the working capital of the enterprise, remly collection ins matters in the payment
process (also known as capital in payment). Normally, the proportion of remorbilities
accounts for between 15% and 20% of the total assets of the enterprise. The
recircliaciation debts of the enterprise include many items: customer remance, up
payment to the seller, deductible VAT, internal remables and other remables. In
particular, customer remly collection usually accounts for the majority of remly
collection.
 Customer rea charge
Rea collectors are remables in cash or equivalents that the enterprise will
collect from the provision of goods and services to customers.
Reaables of enterprises are mainly remables from customers, expressing the
amount of money owed by customers in the process of selling goods and services in
the form of post-payment prepaid sales.
Reaeized debt is classified according to various criteria. Depending on the
characteristics of business activities, each business categorises its reliabilables
according to one or more of the following criteria:
- According to debt age: Debt in term, overdue debt.
- In the form of guarantee: guaranteed debt and no guarantee.
- According to the nature of the debtor: remorbility debts of long-term
customers and new customer reliability debts.

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 - According to recoverability: recoverable debt and i non-recoverable debt.
- According to each type of product provided...
 Prepaid to the seller
Uppaying to the seller is a prepaid business payment to the seller for the
purpose of ensuring that the goods are received in case the market is scarce or the
supplier has too many people who want to buy or to receive a discount from the
supplier. The enterprise will recover this advance in the form of receiving goods
provided directly or indirectly from the debt collector.
 Deductible VAT
The input VAT is refundable but the state budget has not been refunded.
Usually businesses buy raw materials of goods including input VAT, these are
deducted from the output VAT payable. If the output VAT > input VAT, the
enterprise must return that difference to the state budget. If the output VAT < input
VAT, the enterprise will receive this difference from the state budget. If in the
business period, the enterprise has not been refunded that deductible tax amount by
the State Budget, such amount will be recorded in the state budget recircliability debt.
 Internal reath back
This is an amount that usually arises in enterprises with decentralized business,
management and accounting work. It includes granted capital, expenses paid between
superiors and subordinates and others.
 Other rem remlyths
Remables are not part of the above remables. It includes indemnity, provisional
revenues, disposal of lost assets...
1.1.2 Factors affecting the size of re owed debts of enterprises:
The size of remable debts is determined based on the average sales revenue per
day and the average debt recovery period.

Rea collector's Sales turnover is Average

*
debt in the averaged 1 day print debt
period the period recovery
period

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 The re-bearable sales depend on the volume of products, goods and services
sold to customers, the selling price subject to the product and the period of sale.
These factors depend on the sales policy or credit policy of each business. Depending
on the actual conditions and business situation, each enterprise has its own credit
policy and commercial credit process suitable for their business. The credit policy of
the enterprise is controlled through 4 factors: (1) credit standard; (2) credit term; (3)
payment discount policy and (4) debt recovery policy.
1.2.3 Criteria for assessing the efficiency of remance debt management of
enterprises
Financial administrators must regularly monitor remances, assess the speed of
debt recovery to determine their situation and evaluate the effectiveness of corporate
collection policies. :
+ Number of res rem charge turnover:
The turnover of remables reflects the speed at which remables are converted
into cash.
Sales revenue in the period
Res res charge =
rotation Average balance of KPT in the
period
The higher the re-revoicing turnover index shows that the faster the rate of debt
recovery of the enterprise and the less capital of the enterprise is occupied.
+ Average collection period:
Reflect the length of the time of collection of sales of enterprises from the time
of delivery to the collection of money.

Average balance of KPT in the

Collection period period
=
average Average revenue per day

In contrast to the index of reflux turnover, the smaller the average collection
period index, the faster the rate of recovery of reflux debts of enterprises.
+ Bad remor collection ratio:

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 This is also an objective that reflects the efficiency of management of re-
revenue debts of enterprises. It shows that the ability of the enterprise to recover
debts is high or low.
The amount ofBad received
Bad remor = debt
collection ratio Remorm remor overdue
Balance
The lower this index is, it can be concluded that the higher the efficiency of
managing re-revenue of the enterprise and vice versa.
PART 2: SITUATION OF REMORBED DEBT MANAGEMENT OF SONG
HONG GARMENT JOINT STOCK COMPANY
2.1 The process of formation and development of Song Hong Garment Joint
Stock Company:
2.1.1 Formation and development process:
Song Hong Joint Stock Company is one of the leading garment and bedding
factories in Vietnam. With more than 20 factories built and managed centrally within
Nam Dinh province, with the advantage of geographical location near airports,
seaports, human resources trained with competitive costs, the management apparatus
is Vietnamese, combining the recruitment of leading international experts in the
industry. , the company has become a reliable partner of many famous fashion brands
around the world.
Address: 105 Nguyen Duc Thuan Street, Nam Dinh Ward, Nam Dinh
Province
Tax code: 0600333307
Representative: Mr. Bui Duc Thinh
Charter capital: VND 500,094,000,000
Listed share volume: 50,009,400 shares
Volume of shares in circulation: 50,009,400 shares
Business:
 Producing and trading garments and supplies and equipment for industrial
production and textiles.

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  Trading industrial sp for people.
Trading cigarettes, alcohol and cosmetics.
The process of formation and development
 1988: On July 1, 1988, the company was established as Garment Factory 1/7,
which is a state-owned enterprise with a scale of 100 people.
 1993: Renamed Song Hong Garment Company
 1997: The regenerated Cotton Enterprise was merged into Song Hong Garment
Company, becoming The Red River II area, the whole company has 3
garment factories with 1000 people.
 2001: Red River Bedding brand was born
 2002: The head office moved to 105 Nguyen Duc Thuan, Nam Dinh city, with
a scale of 3 garment factories with 1500 people.
 2004: The company was pized, became Song Hong Garment Joint Stock
Company
 2006: Further development of Red River III area at National Highway 10,
Nam Dinh City, the whole company up to 3600 people with 6 garment
factories, 1 laundry workshop, 1 bedding workshop, 1 cotton workshop and
quilted cotton
 2007: Established Song Hong Garment Co., Ltd., with representative branch
located in Hong Kong
 2008: Further development of Red River IV area in Xuan Truong district, Nam
Dinh province with the scale of 4 garment factories, 6000 people.
 2010: Implemented the project of building Red River area in Hai Hau district,
Nam Dinh province with the scale of 4 garment factories. It is expected that
by 2011, the whole company has 8000 people with 14 garment factories, 2
laundry workshops, 1 bedding workshop, 1 cotton workshop and quilted
cotton
 2013: Established Song Hong 8 production area - specializing in producing
high-end bedding and cotton without chemicals in Vietnam.

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  In 2016, Nghia Hung production area came into operation after one year of
construction.
 The company listed its shares on HOSE on November 28, 2018 with the stock
code MSH. Song Hong Garment Joint Stock Company is currently
considered as one of the leading enterprises in the production and trading of
bedding products in Vietnam market. Garments of Song Hong Garment Joint
Stock Company include processed goods and exports (FOB) in which FOB
goods currently account for a major proportion in the revenue and profit
structure of the company. Many world famous apparel brands are produced in
large quantities in the Red River such as GAP, Old Navy, Timberlands,
JCPenny, Diesel, Spyder, Champion
2.2 Situation of rea collector's debt management of Song Hong Garment
Company
2.2.1 Calculation of indicators
In order to deeply assess the situation of re owed debts of the Company, it is
necessary to go into a specific analysis of the volatility as well as the structure of
remables of the Company:
2.2.1. Size and proportion of remance of the Company:
Table 1 Size and proportion of remance of the Company:
Items Unit 2019 2020
1. Receivable Milion 523,340 430,253
at the
beginning
2. Receivable Milion 430,253 410,938
at the end
3. Average of Milion 476,796.5 420,595.5
receivable
4. Net sales Milion 488,138 405,095
5. Receivable Times 19.16 13.97
turnover
6. DSO Days 19.05 26.11

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8
Figure 2.1: Situation of res remables fluctuations compared to total assets in the
last 2 years
Unit: Million

3,000,000

2,491,911 2,553,020
2,500,000

2,000,000

1,500,000

1,000,000

500,000 430,253 410,938

0
2019 2020

Nợ phải thu Tổng tài sản

Through the 2.1 chart, we can see that the size of the Company's remables has
tended to decrease in the last 2 years. From 430,253 vnd in 2019, realiabilities have
decreased at a rate of approximately 4.5% corresponding to a decrease of 19,315 vnd
in 2020 to only 410,938 vnd. Meanwhile, total assets have increased in the last 2
years: from 2,491,911 vnd in 2019, total assets to 2020 increased by 61,109 vnd
(2.45% ) and reached 2,553,020 VND. From these figures it can be concluded that in
the last 2 years, the company's re-revenue tissue is a fairly small proportion and is
trending down at a higher rate of volatility than the rate of change in the Company's
total assets. On the other hand, the proportion of remables in total assets is also
decreasing and the proportion is gradually decreasing in the last 2 years: specifically,
in 2019, this rate is 17% to 16% by 2020. Thus, it can be concluded that the
Company's capital is not quite a backlog in remables and the Company is in good
control of the remable debt issue.

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 Going into a detailed analysis of remables will help us to be more aware of the
fluctuations of items such as customer remables, up payment to sellers, other reliabils
and provision for short-term remables.
Table 2.2: Structure of short-term res recourse in the last 2 years
Unit: Million
quota 31/12/2009 31/12/2010 Increase and
decrease
Amount Ttr % Amount Ttr % Amount Ttr %
Short-term resises 419,191 100 399,876 100 (19,315) (4.61)
Customer rea charge (29.35
547,548 130.62 386,866 96.75 (160,682)
)
Prepaid to the seller 24,045 5.74 43,460 10.87 19,415 80.74
Other rem remlyths (12.35
10,000 2.39 8,765 2.19 (1,235)
)
Hard-to-collect (181,717 (89.05
(43.35) (19,90) (4.98) 161,817
backups ) )

From table 2.2, we can clearly see the fluctuations of each item in the overall
remables of the Company:
+ Customer rea charge:
2015 Customer Rea remth back20 has decreased compared to 202019.
Specifically, in 2010 this amount was reduced 160,682đ correspond 29,35%
compared to 2019; where the number amount of debt related to the item apparel is
mainly. Amount size phCustomer turnover in 2 years is quite high, the majority of
which are remables from domestic customers. In addition, the proportion of customer
rem remesthees in the company's total remlys for both years is very high, but it is
trending down: in 2020 be 130.62% and 2019 be 96.75%. The high size of customer
rea charge in recent years is due to the following reasons: one is, the commercial
characteristic of the domestic market is that it is generally acceptable to defer
customers for a certain period of time and treat this as a condition for building long-
term relationships; secondly, the domestic as well as international economic situation
is still difficult because it has not escaped the crisis, causing the number of customers
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late to pay significantly increased; thirdly, the Company's credit policy is lacking
strictly so it is quite easy for the Company to accept debts to customers. Thus, it can
be concluded that the large scale of customer reaach is due to both objective and
subjective reasons.
+ Prepaid to the seller:
The up payment to the seller last year increased sharply, thereby increasing the
proportion of this item. Specifically, in 2020, the amount of money the Company
advance to customers has increased by 233.96% corresponding to 19,415 vnd
compared to 2019. This major change is due to the scarcity of domestic market
supply, so the Company had to pre-order domestic suppliers to ensure sufficient
inputs for business activities.
+ Other remlymly remlymthly:
Other remth backs in 2020 also decreased slightly compared to 2009 at a rate
of 12.35 % corresponding to 1,235 vnd, and the proportion of other remth backs in
short-term remth into 2020 decreased compared to 2019 to only 2.19% of the total
proportion.
+ Rea collector's debt reserve:
The company's reserve level of resliabilities in 2020 has changed markedly
compared to 2019, specifically decreasing by 89.05% corresponding to 161,817 vnd.
The increased level of reserves can conclude that the amount of overdue debt of the
Company in the past year decreased, which also means that the amount of credit at
risk of loss of the Company has decreased more.
The efficiency of debt management is clearly shown through the index of the
rate of increase and decrease of remembrance debt compared to net revenue, the rate
of remable turnover.

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  The rate of increase and decrease of remembrative debt compared to
net revenue:
Figure 2.2: Situation of increase and decrease in remembr back debt compared
to net revenue
Unit: Million

Chart Title
5,000,000
4,411,871
4,500,000
4,000,000 3,817,925

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
430,253 410,938
500,000
0
2019 2020

Nợ phải thu Doanh thu thuần

From figure 2.2 it can be concluded that last year the Company's
remembrable debt was consistently fluctuations with net revenue, when re-
revenue debt tended to decrease over the years, net revenue also tended to
decrease. However, it can be seen that the pace of change in remembrable debt is
greater than the variable rate of net revenue, in 2019 while net revenue decreased
by about 13.46%, remembr back debt also decreased by 4.49%. Therefore, the
ratio of remembrable debt to net revenue of the Company is always quite low
and is trending downward (in 2019 is about 1/10 and in 2020 is about 1/9). The
reason for such consistent fluctuations and decreasing speeds is that since the
beginning of 2019 the world economy has not been greatly affected by the
Covid-19 pandemic, but by 2020, due to the complicated developments of the
pandemic, the whole world has been affected, making the company's production
more or less affected. On the other hand, the liquidity situation of the
Vietnamese market due to good anti-epidemic work should make customers'.
Thus, through the above indicators, it can be concluded that rea collector's debt
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 is decreasing and the Company is still in good control as well as the debt
recovery is improving.
Rea res rem charge rotation rate:
The rate of re-collection transfer is shown in 2 indicators of remable turnover
and average collection period.
Figure 2.3: Turnover of resliabils of the Company in the last 2 years
Unit: Time
9.3
9.25
9.25

9.2

9.15

9.1 9.08

9.05

8.95
2019 2020

Vòng quay khoản phải thu

Figure 2.4: Average collection period of the Company in the last 2 years
Unit: Day
40.4
40.21
40.2

40

39.8

39.6
39.44
39.4

39.2

39
2019 2020

Kỳ thu tiền bình quân

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 Through graphs 2.3 and 2.4, it can be seen that the rate of turnover of
reliabilables of the Company in the last 2 years has changed but not greatly.
Specifically, in 2019, this index reached 9.25 rounds / year to 2020, the number
of rotations decreased by 0.17 rounds to 9.08 rounds / year. The low reper
charge turnover entails the company's long collection period. In fact, in 2019, the
Company took an average of about 39 days, more than 1 month to recover all
debts, by 2020 this figure has increased slightly to approximately 40.2 days that
have been able to recover all debts, this change takes place in no significant way
to prove that the company manages very well the handling of its remables. These
parameters show that the realiability turnover is constantly increasing and the
collection period is gradually being significantly long. Compared to the credit
term that the Company is applying is 30-90 days, it is clear that the average
collection period is at a short level. This result is due to the company's
increasingly good management of reliabilables, the Company has its own debt
management department to manage debts from the time they arise until the
overdue so the urging of customers to repay debts on time has not been paid due
attention. Through the above indicators, it can be concluded that the
management of re-revenue debt of the Company still exists inadequate but there
are positive signs that can be seen from the efficiency of remable debt
management better and better.
2.2.2: Reviews and reviews
Firstly, the Company has developed a strict remorable debt management
regulation and has a clear allocation.
The company's remable debt management has been coordinated between
many departments with a regulation that clearly stipulates the responsibilities
and competence of each individual as well as the organization in theCompany.
This is the premedion to help the company's debt management run smoothly and
smoothly.

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 - Secondly, the Company has had a certain interest in the management of
reaeized debts.
In recent years, the Company has focused a lot of resources and resources
to develop a flexible and effective credit policy that goes hand in hand with the
scientific and rigorous commercial credit process. Specifically, the Company has
set up a separate debt department independent of the accounting department and
finance department, applying the debt management model to specialize in debt
monitoring and recovery. In addition, debt reconciliation and debt classification
are also carried out regularly; many hard-to-claim remables that have been dealt
with for many years have been dealt with definitively. This reasonable
investment has brought the Company very positive results expressed through the
ratio of overdue and bad debts is decreasing, and the ability of credit officers to
recover debts is markedly improved.
PART 3: SOME RECOMMENDATIONS FOR BUSINESSES
3.1 Some recommendations to improve the efficiency of remance debt
management of Song Hong Garment Joint Stock Company.
Fostering and improving professional qualifications and skills of
remorized debt management team

+ The company should organize classes or create conditions for credit

officers to participate in classes taught by experts in order to improve their
professional qualifications and skills. Appraisers need to improve their ability to
analyze the financial situation and repayment capacity of customers so that they
can determine the level of customer trust more accurately. Employees of the debt
department should be trained in telephone communication skills, the ability to
persuade customers to pay or commit to payment, how to handle difficult
situations, proficient use of supporting software.
Khip stops improving the economic legal knowledge of the remorable
debt management team to apply to the process of negotiating and signing
contracts with customers. In contract negotiation, it is advisable to include

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 security constraints (usually material guarantees such as bets, deposits,
deposits ...) to enhance the responsibilities of each subject in fulfilling the
obligations committed to each other in the contract, while preventing the
situation of ignoring obligations in the performance of contracts, i.e.
preventing the recurrence of overdue debts in the enterprise.
CONCLUDE
Improving the efficiency of re-collection debt management is no longer a
new problem for businesses, but it is always a matter of survival for each
business, ensuring businesses achieve their goals. Therefore, the topic has
focused on analyzing and clarifying the following basic contents:
First:General presentation of general theory of re-revenue debt at the
turnover.
Second: Through surveying the picture of re-collection debt management
at Song Hong Garment Joint Stock Company, the topic has studied, reviewed
specifically and evaluated in detail thesituation of remable debt management at
the Company in the past. Since then, there have been important evaluations of
the company's remored debt management. This is the practical basis for
completing the company's remable debt management in the near future.
Third: Based on the analysis on the situation of remable debt management
of Song Hong Garment Joint Stock Company, the topic has proposed solutions
for the completion of remable debt management thereby contributing to
improving the efficiency of thecompany's remable debt management in the
future.

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 REFERENCES
1. Corporate Finance Textbook,Finance Publishing House, Editor
2. Financial statements of Song Hong Garment Joint Stock Company in the
period of 2019-2020.
3. www.stockbiz.com , www.s.cafef.vn

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