INTRODUCTION PAGE 22 INTRODUCTION Due to necessary requirements to apply theory to practice and then after completing the theories of accounting major, various universities have let students to make e[.]
OVERVIEW OF HOANG HA JOINT STOCK COMPANY
Establishment and Development of Hoang Ha Joint Stock Company
1.1.1 Background information of the company
Hoang Ha JSC was established according to Decision No 1767/2001 / QD - UB
25 September 2001 People's Committee of Thaibinh.
Hoang Ha SJC is an independent enterprise under the Department of Transportation of Thai Binh province, primarily responsible for passenger transportation by car The company also engages in the sale of car accessories, materials, and gasoline Following organizational restructuring, its headquarters is now located at No 368 Ly Bon, Thai Binh City, covering 10,377m² with offices, workshops, and a parking area Due to Thailand Binh's high population density and lack of rail traffic, road transport plays a crucial role in the province’s economic and political landscape.
Thai Binh is primarily an agricultural province whose economic development has lagged behind neighboring areas such as Nam Dinh, Hai Phong, and Hai Duong However, recent open-door policies promoted by the government have provided significant incentives for both domestic and international enterprises to invest in the region This strategic move has led to the establishment of numerous industrial and sub-industrial zones within Thai Binh city and its districts, fostering economic growth and industrialization.
Hoang Ha Transports has invested in new types of vehicles over its 13 years of establishment to meet all transportation needs, demonstrating continuous growth and adaptation The company boasts a highly professional team of employees who prioritize passengers' comfort and safety, always considering them as "King," which leaves a positive impression on travelers both inside and outside the province With a significant market share on the Thái Bình - Hà Nội route, Hoang Ha Transports dominates in passenger transportation and holds tremendous growth potential This strong market presence and reputation serve as a vital foundation for the company's plans to expand and develop services to other provinces.
- Company Name: Hoang Ha Joint Stock Company
- Business name: Hoang Ha Joint Stock Company
- Chief Executive Officer and Director: Luu Huy Ha
- Head office: 368 Ly Bon Street, Thaibinh City
- Website: http://www.hoanghaco.com.vn
- Account: 4711.000.000.2586 at the Bank for Investment and Development of Vietnam Thaibinh subsidiary.
- Director is the legal representative for the company.
The company may establish subsidiaries and representative offices to achieve its operational objectives, in accordance with Board of Directors' resolutions and applicable legal regulations.
- Subsidiary of Hoang Ha in the Hung Yen city, Hung Yen province
Address: Hung Yen’s coach station, Hung Yen City, Hung Yen province.
- Subsidiary of Hoang Ha in Hanoi
Address: No 30 Vong Street, Hoang Mai precinct, Dong Da District, Hanoi.
- Subsidiary of Hoang Ha in Quang Ninh.
Address: Cua Ong coach station, group 18, zone 2, Cua Ong Ward, Cam Pha town, Quang Ninh Province.
1.1.2 Some achievements of the company
Since 2001, the company has continuously developed to seize the opportunity to create company own brand, this efforts has achieved a encouraging achievements are as follows:
- Excellent Emulation Flag of the Ministry of Transport.
- Merit of Labor Federation of Thai Binh
- Merit of People's Committee of Thai Binh
- Awards for youth employment by the Committee for International Cooperation in Vietnam and the National Committee for Youth Vietnam awarded.
- Labor federation rewarded merit no 19 on 12/20/2005
- Vietnam Gold Star award which was organized by the International Committee in collaboration with the Central Committee of the Young Entrepreneurs Association of Vietnam awarded.
The People's Committee of Thai Binh recognized outstanding leadership by awarding a merit to the company's director for exceptional performance in promoting socio-economic development within the non-state sector during 2005 and 2006 This recognition highlights the director's significant contributions to fostering economic growth and development in the region Such awards underscore the company's pivotal role in supporting local development initiatives and strengthening the non-state sector's impact on Thailand Binh’s economy.
- Chamber of Commerce and Industry of Vietnam awarded a merit for the director and the Chairman as the typical entrepreneur local business sector in 2007
- People's Committee of Thai Binh awarded the top 10 typical enterprises in 2007
- The Ministry of Transport awarded certificate of merit for Hoang Ha JSC for achievements in developing the movement of local transportation 2007.
- Merit was awarded by Insurance Corporation of Vietnam because of achievements in” Implementing the policy of social insurance in 2007"
- Director of the company received a medal "For the development of the business community in Vietnam" awarded by the Chairman of the Chamber of Commerce and Industry of Vietnam.
- People's Committee of Thai Binh awarded certificates of merit for Hoang Ha JSC which had outstanding achievements in business in 2007 (No 12 / QD / UB 9/1/2008)
- Gold Star Cup of Red River Delta Region in 2008
- Vietnam Gold Star Cup in 2008
- Vietnam Quality was awarded by the Center of Quality Standards - Ministry of Science and Technology of Vietnam.
- People's Committee of Thai Binh awarded a merit to company because of reaching the Top 10 outstanding enterprises in 2008.
- People's Committee of Thai Binh awarded certificate of merit for the company for outstanding achievements in production and business, contributing to the economic development of the local society in 2009
- Chamber of Commerce and Industry of Vietnam awarded certificate of merit for director Mr Luu Hoang Ha who was a typical entrepreneur local business sector in 2009.
- The company was recorded as one of the 500 fastest growing companies in Vietnam in 2010
- President of the Socialist Republic of Viet Nam awarded the third labor medal.
1.1.3 Relationship between the company and related parties
Banks : Company has being traded in banks such as the loan is secured by mortgaging part of fixed assets as a means of transport of the borrower Banks are:
- Joint Stock Commercial Bank for Foreign Trade of Vietnam – Thai Binh subsidiary
- Joint Stock Commercial Bank for Investment and Development of Vietnam – Thai Binh subsidiary
- Dong A Bank - Thai Binh subsidiary
Department of Taxation: The company pays the tax in the Tax Department of Thai Binh 1.1.4 Market shares of the Company
To examine this issue, the author considers three main types of services of the company :
- For the type of bus, the company is now the unique firm that the Department of Transport Thai Binh licensed, so the company’s market share accounts for 100 %.
Thai Binh province hosts numerous taxi companies, including Hoang Ha Taxi (covering Hoang Ha and Thai Binh Taxis), Mai Linh, Thien Binh, and Phiet Hoc Among these, Hoang Ha Taxi, established in 2004, is the earliest and has the longest-standing presence in the province, demonstrating extensive industry experience Thien Binh Taxi has been operating since 2008, while Mai Linh entered the Thai Binh market in 2009 The market share of these taxi companies in Thai Binh can be visualized in a bar chart, reflecting the competitive landscape of transportation providers in the region.
Chart : Market shares of taxi company operating in the province
The bar chart reveals that Hoang Ha Taxi holds nearly 50% of the taxi market share in the province, dominating the industry Mai Linh Taxi ranks second with a 15% market share, followed by Thien Binh and Phiet Hoc Taxis, which hold 15% and 11% respectively.
Several intercity bus service providers operate in Thai Binh, with more than 10 companies offering taxi and passenger transport services Key competitors include prominent operators such as Hoang Long, Vietbus, Thai Binh Passenger Car JSC, Transerco, and Hai Au These companies collectively provide extensive transportation options, ensuring reliable connectivity within Thai Binh and to neighboring regions Their presence enhances the local transportation infrastructure, making intercity travel more accessible and convenient for passengers.
Chart : Market share of passenger cars operating in the province
Despite numerous competitors in the market, the company maintains a dominant market share, surpassing others significantly The market share analysis reveals that Hoang Long JSC is the primary competitor of Hoang Ha, with a noticeable gap in their respective market positions This competitive advantage underscores Hoang Ha's strong position in the industry, driven by its strategic initiatives and reliable market presence.
Ha JSC and other companies in the industry share similar characteristics, highlighting the need for Hoang Ha JSC to develop detailed future strategies To increase market share and outpace competitors, Hoang Ha JSC must focus on comprehensive planning and innovative growth initiatives Effective future planning is essential for Hoang Ha JSC to strengthen its position and achieve sustainable success in a competitive market landscape.
Hoang Ha JSC primarily targets the Thai Binh province, serving local residents with transportation services including buses, taxis, and passenger cars for daily commuting Additionally, the company expands its passenger car services to other key provinces such as Hanoi, Quang Ninh, Nam Dinh, and Ha Nam, aiming to meet the transportation needs across northern Vietnam.
The company's primary customers in the province include workers in industrial zones and students, who rely on bus services to reach factories and schools located far from their homes These clients often have low or no income For passenger car services, the main customers are students living away from home and professionals commuting to other provinces.
The transportation industry is primarily driven by automotive manufacturing companies and supply chain providers that deliver car parts and materials These companies specialize in supplying essential components for vehicle assembly and maintenance Additionally, they collaborate with consulting firms, auto repair centers, ASC providers, and distributors like VietParts to enhance service quality and supply chain efficiency, ensuring a comprehensive solution for automotive parts and maintenance needs.
Characteristics of the Business Operation of Hoang Ha JSC
The responsibilities of the company are not only enhancing technical construction but also gradually modernizing the service approach, building a team of staffs, who have highly qualified professionals in order to meet the development needs of enterprises.
In addition, the company also expanded relations, market development, ensuring balance budget, and completing company’s obligations to the Government, improving the living of workers
However, to carry out functions above, the Company has to perform the following responsibilities
Construction and implementation of business plan under the current regulations in order to fully implement the functions and duties which is set by the company ;
Compliance with State law on the issue of safety when transporting passengers ,goods and fulfilling the obligation to pay tax for government
Management and effective use of funds to perform the task and ensuring profitability ;
Make the commitment of economic contracts, purchase contracts and foreign trade contracts , and other obligations relating to the business activities
1.2.2 Features of the Business Operation
Hoang Ha JSC is a leading transportation company in Thai Binh province and its surrounding areas, specializing in passenger and goods transport services As a prominent player in the logistics and logistics industry, the company focuses on reliable and efficient transportation solutions to meet the diverse needs of its clients With a strong reputation in the region, Hoang Ha JSC continues to expand its operations, ensuring high-quality service delivery in the competitive transport sector.
With a vision of development, the company has gradually expanded its field of activities , including many different types of business , such as:
- Business on passenger transport field on fixed routes and tour contractual
- Carriage passengers by taxi and bus
- Repairing and maintaining of automobiles, vehicles
- Business on hotel and catering services
- Purchase and sale of lubricants
- Agents to purchase cars (old and new ones).
The company's diverse business operations are driven by the characteristics of the service sector, particularly transport services, encompassing activities such as passenger and goods transportation Additionally, the company partners with service industry organizations like restaurants and hotels, ensuring a steady stream of visitors that boosts service revenue By consistently meeting client needs and establishing a strong market position both locally and beyond, the company strengthens its presence and growth in the industry.
1.2.2.2 Characteristics of products and services
Hoang Ha JSC has implemented a strategic diversification of its business operations to strengthen its competitive advantages The company's core activities revolve around transporting passengers and goods, with primary services including taxi and bus transportation, as well as car rental and travel services These diverse transportation solutions enable Hoang Ha to meet a wide range of customer needs, enhancing its market presence and service versatility.
Hoang Ha offers a wide range of services including office rental, hotel accommodations, restaurant operations, and auto parts repair and replacement This diverse and comprehensive portfolio demonstrates the company's ability to meet the varied needs of customers both within and outside the province.
Thai Binh's challenging terrain limits rail and air transport options, making road transportation the dominant mode, which benefits the company by leveraging its road logistics expertise To enhance competitive advantage, the company actively conducts research to implement diversified strategies across its services Currently, the company operates a range of transportation services, including inter-provincial passenger car routes, buses, taxis, contractual and travel cars, express delivery, and vehicle workshops, establishing a comprehensive transportation network tailored to local needs.
Chart : Operating activities of the Company
The diagram clearly illustrates the company's core operating activities, which are segmented into three main divisions: taxi operating division, bus operating division, and car route operating division Each division is further subdivided to facilitate direct management of different vehicle types, ensuring more efficient oversight and streamlined operational control.
The company specializes primarily in the transportation sector, leveraging its strengths through diversified business activities Its main focus includes providing passenger car services, taxi operations, and car rental solutions These core business processes highlight the company's expertise and commitment to delivering comprehensive transportation services, ensuring customer satisfaction and market competitiveness.
Operating room of the whole company
Passenger- car route operating division
Thai Binh taxi team Bus routes
Passenger- car route Hoang Ha taxi team
Chart : The process of providing passenger – car and bus services
Step 1: When a passenger enters car, assistant driver will ask for the location where the passenger would like to go, then inform her/hem about the price ( depending on the route , age ).
Step 2: Arranging seat for passengers, and following the rule first - come, first - serve, giving priorities for the elderly, pregnant women and children,
Step 3: The passenger pays money for an assistant driver, and give ticket back.
Step 4: Performing transport passengers to the location requested
Step 5: Get passenger’s opinions on the quality of service ( comment on a given paper )
Chart : The procedures for car rental service
Give price of service for passengers
Arrange seat for passenger Payment and sending ticket to passenger
Order type of cars and notice price Signing contract, to pay a deposit Printing receipt, sending to customer
Payment the of rest of fee Receive passenger’s opinion
Step 1 : Customer conducts reference of vehicles , number of seats , on the company's website and then contacting by phone or email, Yahoo Chat in order to require appropriate service and price of service.
- When the representative of client and the company agree with type of car, prices and details of services, operating department will send contract through the mail to customers
- After agreeing about the content of the contract via Email / Fax , the two parties will formally sign the contract and pay a deposit.
- The minimum of deposit that customer has to pay account for 70% of total money of that service, this amount of money is paid immediately after signing the contract.
Step 3 : After that, the client will receive the deposit receipt by email or Fax Scan which is affixed company’s seal to this receipt.
Step 4 : Performing contract and following time and place agreed
Step 5 : The remaining amount of money (30%) can be paid for customers within 3-5 days after ending the rental car service.
Step 6: Get passenger’s opinions on the quality of service ( comment on a given paper )
Organizational Structure of Hoang Ha Joint Stock Company
1.3.1 Overview of labor situation in the company
Table : Summary of the labor situation
From 2011 to 2013, the company's workforce steadily increased, surpassing 800 employees by 2013, representing a growth of over 50 staff members compared to 2011 The majority of employees in recent years are male, primarily due to the company's reliance on male workers such as drivers, assistant drivers, and technical staff Most employees are young, under 45 years old, and possess low levels of formal education, with over 75% requiring only a junior high or high school diploma For roles like drivers, basic health, at least two years of experience, and good attitude are sufficient Despite this, the company should focus on developing a workforce with higher education and specialized skills, particularly in areas like repair, administration, and management.
Figure : Model of organizational structure
Hoang Ha JSC's organizational structure is based on centralized management, with the Shareholders’ Meeting serving as the top authority The company's hierarchy continues with the Board of Directors and Supervisory Board, followed by the management boards, departments, and subsidiaries This centralized model ensures clear authority, efficient decision-making, and effective corporate governance.
1.3.3 Functions and responsibilities of departments inside the company
The shareholders’ meeting is the highest decision-making body of the company, responsible for overseeing the operations of the board of directors and supervisory board It plays a key role in approving the company's annual dividends, amending corporate rules, reviewing and approving the annual financial statements, and setting strategic directions for the company’s future development.
Administr ative – office departme nt
Shareholders’ meetingBoard of Directors
The Board of Directors holds the highest authority within the company, comprising seven members including the Chief Executive Officer, a vice president, and five board members This body is responsible for making key strategic decisions related to the company's development, investment plans, market expansion, and organizational structure Additionally, the Board has the authority to appoint and dismiss executives such as directors and chief accountants, as well as make vital decisions regarding staff salaries and benefits.
Supervisory Board : Supervisory Board has the following functions :
- Check accounting book, asset, the summary financial year of the company and request the Board of Directors to hold Shareholders' Meeting if necessary
Ask employees in companies to offer situation, the amounts and disclosures relating to the business operations of the company.
Board of Directors : Board of Directors includes: 1 director and 1 deputy director.
In particular, the Board of Director is responsible for:
- Managing organization and effective use of company’s capital and assets to achieve the objectives of Board of Directors set out.
- Based on the development by the shareholders’ meeting placed, building long- term plans
- Operational management of the daily business of the company, having the right to arrange the production and business of the company, defining salary level for staffs.
In addition, the vice president has the right to advise the director problems of their professional
Departments : The company consists of 4 departments and 2 boards : administrative - office department, financial – accounting department, Business and Marketing Department and technical department, service board and monitoring board.
Administrative – office department has responsibility for following functions and duties :
- Recommending to all rules, regulations and performing every policies and regimes of the Party and Government for employees
- Recording management and settlement procedures and, managing social security fund salary and bonus.
- Managing administration, transaction, forwarding and storing documents, stamps, office equipment storage, examination and treatment organizations buy health insurance for employees.
- Planning to implement plan about maintenance and repair vehicles
- Organizing and implementing plans about investment in new vehicles, liquidation and technical equipment.
- Subscribing permit of the vehicle, vehicle insurance and settling traffic accidents.
- Printing ticket and tables for management of the company.
Financial Accounting Department has various functions and duties:
The Financial Department ensures the preservation of capital by accurately accounting for revenues and expenditures, conducting functional testing, and controlling expenses in accordance with financial ordinances They provide timely and precise reports to the Board of Directors regarding fluctuations in capital and capital assets Additionally, the department meticulously calculates the costs associated with transactions, including ticket prices, freight, profits, and losses, to support transparent financial management.
The marketing business department evaluates the company's current situation and develops new strategic plans for the future It is composed of two switchboards, Thai Binh and Hoang Ha Taxi, which are responsible for maintaining communication with clients and the company's transportation units These switchboards also serve as channels for issuing directives from the operations department to ensure effective management and coordination.
The board is responsible for monitoring the operational status of various types of vehicles and ensuring the effective implementation of the business plan It regularly reviews performance data, identifies any issues, and reports the current situation, plans, and problems to the director This oversight ensures that the business remains on track, optimizing vehicle operations and addressing challenges promptly for sustained success.
The board performs management functions of business exchange services such as maintenance, repair, upgrade and overhaul, business berth operators, oil and gas business, catering, hotels.
Car services are primarily designed to transport passengers efficiently and safely To ensure a high-quality experience, they must follow accurate bus routes, allocate the correct berth, and provide timely, well-maintained vehicles Additionally, many car services offer rental car options, providing flexibility and convenience for travelers seeking private transportation solutions.
Hoang Ha JSC operates three subsidiaries across different provinces, enabling efficient management and control of passenger car routes These subsidiaries are responsible for notifying departure times and dates, as well as tracking passenger numbers to ensure smooth operations This strategic structure enhances the company's ability to provide reliable transportation services and improve overall customer satisfaction.
When the departments in solving problems relates to the field of other departments, that department also actively coordinate related departments For example:
The Department of Finance and Accounting must collaborate with the Administration Department to accurately manage employee declarations, insurance, and attendance tracking This integrated approach ensures precise financial and payroll accounting, facilitates insurance deductions, and simplifies personal income tax payments By working together, these departments help ensure employee rewards are processed in accordance with regulations and deadlines, promoting compliance and efficiency.
Bus and taxi operators responsible for operating fixed routes should regularly coordinate with the technical department to conduct periodic vehicle inspections This collaboration ensures the maintenance of high-quality and safe transportation services for passengers.
- When in company departments lack the staff, this department will coordinate withDepartment for administration to recruit new employees.
Subsidiaries located in different geographical regions should maintain regular and close communication with other company departments to ensure timely and accurate information exchange This consistent engagement helps overcome challenges posed by distance and fosters effective collaboration across the organization.
Financial Position and Operational Results of the Hoang Ha Joint Stock Company
1.4.1 Financial Position in recent years
To gain a clearer understanding of the company's financial position and operational performance in recent years, the author analyzed the balance sheet and income statements from 2011 to 2013 The balance sheet provides a detailed snapshot of the company's assets and capital structure at a specific point in time, while the income statement offers an overview of the company’s revenues, expenses, and overall profitability during each period These financial reports serve as reliable resources for stakeholders and partners to assess the company’s stability and operational results, forming a solid basis for informed cooperation Based on the analysis of these documents from 2011 to 2013, the author has compiled the following tables to present key financial data.
Comparison 2012/2011 Amount of money Amount of money Amount of money
10 Net profit from operating expense -699 -10,524 -2,715 9825 93.36 -7,809 -287.62
15 Present corporate income tax expense 0 0 0 0 0 0 0
Bảng 1: Đánh giá kết quả hoạt động sản xuất kinh doanh của Công ty
It can be seen from the table that the result of the Company's business was not good from 2011 to 2012,but this had a positive change than in 2012-2013.
* Business results in 2012 compared to 2011:
Compared with 2011, there is an decreased in the business results of the company in 2012, although Gross sale revenue increased.
In 2012, the company’s passenger transportation business on fixed routes became a key strength, with luxury, courteous, safe, and stable vehicles preferred by passengers traveling between Hanoi, Quang Ninh, Saigon, Thai Binh, and other locations This led to increased fleet sizes and trips, meeting growing travel demands and earning passenger trust, reflected in an 8,663 million VND (approximately 5.94%) rise in gross sales revenue Since the company had no deduction revenues, net sales closely matched gross sales However, rising costs of goods sold resulted in an 11.66% decrease in gross profit Net profit from operating activities fell dramatically by 287.62%, affected by a 70% drop in financial revenue, a 53% increase in financial expenses, and a 30.18% reduction in managing expenses—all insufficient to boost net operating profit The decline in operating and other expenses, along with decreased other profits, caused total profit before tax to drop by 255% Without corporate income tax expenses, net income equaled total profit before tax, decreasing by 7.485 million VND in 2012.
In 2012, the company's business results declined compared to 2011, with sales experiencing an increase while profits decreased Despite higher sales, the company struggled to control fixed costs effectively, impacting overall profitability.
Business results of the company in 2013 had better movement in particular:
In 2013, the company's gross sale revenue increased by 3,985 million (2.58%) compared to 2012, driven mainly by growth in business catering and hotel services, with net sales remaining steady alongside gross sales Despite a rise in the cost of goods sold, gross profit improved by 11.11%, as the company efficiently managed fixed costs and increased financial activity revenues As a result, net profit from operating expenses grew significantly by 9.825 million, while other incomes and profits also rose, leading to a total profit before tax increasing by 12.395 million in 2013.
In recent years, the company's operational performance has steadily improved, reflecting positive growth To further enhance profitability, the company should implement cost-reduction strategies, particularly targeting the cost of goods sold to increase gross profit Reducing overall costs will lead to higher net income, boosting investor confidence and strengthening the company's reputation with financial institutions.
Table 1.4 : Analysis of the position of capital and assets of the Company
( Figure in : million VND ) ( Source : The Balance Sheet) Different between 2012 Different between 2013
The company's ability to mobilize assets has shown a slight decline over the past three years, with total assets decreasing by 5,122 million VND (1.75%) in 2012 and a further 0.24% decline in 2013 compared to 2012 This decline was primarily due to a significant decrease of 10,419 million VND in equity in 2012, which outweighed the modest increase of 5,297 million VND in liabilities that year In 2013, the reduction in liabilities by 2,617 million VND exceeded the slight rise of 1,976 million VND in equity, leading to a continued fall in total assets Overall, the company's recent years indicate a weak capacity to mobilize assets effectively.
In term of profitability : The author generalizes profitability through two indicators according to the following table
Table 1.7 : Two indicators to generalize profitability
(Figure in: Million VND) ( Source : Income statement )
It can be seen that, two indicators : ROA, ROE which are used to reflect profitability of the company during 3 years is quite not good, especially in the period 2011-2012 From
Between 2011 and 2012, ROA and ROE were both below zero, declining sharply by 260% and 282%, respectively, due to significant decreases in Net Income, Total Assets, and Equity However, in 2013, both indicators saw a remarkable improvement, increasing by 0.043 and 0.1 compared to 2012, indicating a positive trend in the company's profitability, although these figures still did not reach record levels.
* Passenger car service with high quality
The company operates in the following route:
• Pacific - Cua Ong (Quang Ninh)
• Pacific - Comments Pha (Quang Ninh)
Table 3 : The number of passenger cars on two routes HN -line TB and TB- QN
Year Total passenger cars TB-HN TB-QN
( Source: Administrative – office department) Note: TB: Thai Binh
The total number of passenger cars traveling between Thai Binh and Hanoi, Quang Ninh has steadily increased over the years, highlighting growth in regional transportation Specifically, from 2011 to 2013, there was an addition of 45 passenger cars on these routes, reflecting expanded capacity The Thai Binh - Hanoi route continues to dominate in vehicle volume compared to the Thai Binh - Quang Ninh route, emphasizing its importance As new routes are introduced, the transportation company focuses on increasing the number of vehicles and prioritizing the development of high-quality, innovative routes to enhance service efficiency and passenger experience.
Thai Binh Taxi and Hoang Ha Taxi are our two trusted brands offering reliable taxi services Our company utilizes advanced call management software to efficiently track passenger routes and accurately manage customer information, ensuring a seamless and customer-centric transportation experience.
The company has two kinds of taxis serving customers: affordable and luxury taxi From
2011 to 2013, the number increased to 40 taxis, which increases mainly the number of luxury taxis.
* Service Bus: So far, the company operates five bus:
1.Route 01: Thai Binh city - Tien Hai Industrial Zone.
2 Route 02: Thai Binh city - The town of Diem Dien, Thai Thuy district.
3 Route 03: Thai Binh city – Trieu Duong Bridge (Hung Yen)
4 Route 04: Thai Binh city - Ben Hiep, Quynh Phu district
5 Route 05: Thai Binh city - Thai Ninh, Thai Thuy
Total bus operations: 270 turns / day
The total number of buses on the 5 routes: 90 vehicles
Over the past three years, the number of new buses has remained relatively stable, with minimal growth SAMCO vehicles have been in use for many years, highlighting their longstanding presence in the fleet Despite an increase in bus operation frequency, there has been little to no improvement in the overall quality and performance of the buses.
ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM AT HOANG
Accounting Department of the Hoang Ha Joint Stock Company
2.1.1 Organizational structure & staffing in the Accounting Department
Chart 2 : The organizational model in the accounting department
Hoang Ha JSC's Accounting Department operates within a centralized organizational structure, with decision-making authority primarily held by the chief accountant The department comprises 14 accountants, each responsible for specialized tasks assigned directly by the chief accountant, ensuring efficient financial management aligned with the company's organizational framework.
2.1.2 Functions & responsibilities of each accountants in the Accounting Department Chief Accountant:
Cashier Accountant in Hungyen subsidiary
Accountan t in Quang subsidiary Ninh
- Check and monitor the financial revenues and expenditures of the Company in accordance with financial regime of the Government and of the Company.
- Assign directly in the Accounting Department to ensure strict implementation of the provisions of the Government and the Company.
- Make financial planning proposals and make adjustments to suit the reality of companies and markets.
- Guide other accountants performing accounting profession and obeying regulations of the State.
- Check the completion of the assignment, and be responsible before the Director about the truthfulness of the data reported.
The Deputy Accountant is responsible for revenue accounting, ensuring accurate recording and management of income They handle direct payments to owners and drivers, facilitating smooth financial transactions Additionally, they monitor accounting charges related to debt management to maintain financial accuracy In the absence of the Chief Accountant, the Deputy Accountant takes on their responsibilities, ensuring continuous oversight of financial operations.
- Monitor the situation about increasing or decreasing the company's fixed assets, make depreciation allocated table
Perform daily checks of accounting balances to ensure consistency between detailed data and summarized reports, while verifying that ending balances align reasonably with detailed accounts Regularly detect and correct errors within the accounting system to maintain accuracy and financial integrity.
- Check the recording of transactions.
- Support department in which acquire daily sales;
- Support Chief Accountant in working with audit, tax authorities; examine the reasonableness of the data and accounting records of the Company;
Bank accounting involves posting bank deposits, transferring funds to clients, and monitoring the settlement of accounts payable It also entails tightly controlling liabilities and ensuring timely payments to customers for purchases such as raw materials and vehicles This department plays a crucial role in maintaining accurate financial records and managing cash flow efficiently.
The fixed assets accountants are responsible for managing and monitoring all company assets, including vehicles and machinery, by opening and maintaining detailed account cards for each asset category They calculate depreciation monthly to track asset value changes accurately Additionally, they prepare reports on monthly increases or decreases in asset value, assess the residual value of each asset, and provide essential data for company liquidation and sale decisions.
Payroll Accounting (2 people): have responsibility for implementation of salary reduction list (social insurance, health insurance, trade union contributions) and paying cash in case of sickness, accident, maternity,
Cashier (1 people): is responsible for preserving cash, collecting and paying for the objects in the approved documents.
Accounting subsidiary in Hanoi, Hung Yen, Quang Ninh (3):
- Charge, examine the accounting books of the branch
- Check invoices, vouchers before revenue - expenses in subsidiary
- Preparation of monthly tax reports
2.1.3 The position of accounting labors of the company
The number of accountants in the company showed a slight increase over three years, with a rise of five individuals in 2013 compared to 2011 The data indicates that female accountants outnumbered their male counterparts, with 10 females and only 4 males working in the accounting department in 2013 Regarding qualifications, the number of employees graduating from university gradually increased, although overall figures remained small Additionally, higher numbers of staff had completed college or vocational school, with 8 and 6 graduates respectively in 2013, highlighting the diverse educational backgrounds within the accounting team.
Accounting System Applied at the Hoang Ha Joint Stock Company
2.2.1 The Main Accounting Policies Adopted
The Company applies the Vietnam accounting regime issued under Decision No. 15/2006 / QD-BTC of March 20, 2006, Circular No 244/2009 / TT-BTC of December
31, 2009 of the Ministry of Finance and accounting standards issued by the Ministry of Finance Vietnam issued and amendments and supplements, guiding attached.
The Company applies general journal form.
* The currency used in accounting
The monetary unit used in accounting records as Vietnam Dong (VND).
The Company's fiscal year begins on January 01 and 01 and end on December 31 of each year.
* Accounting for inventory: the weighted average method
Inventories are posted in the accounts using the perpetual inventory method.
* Depreciation and amortization of tangible assets, intangible assets, amortization of financial leasing
Fixed assets are depreciated using the straight-line method over their estimated useful lives.
Accounting documents serve as the fundamental basis for recording financial transactions and provide the legal validity for accounting information To ensure accuracy and compliance, these documents must be valid vouchers that meet established criteria The company's voucher system aligns with current accounting regulations, including Decision No 15/2006/QD-BTC, which sets specific standards for voucher validity Implementing a proper voucher system is essential for maintaining reliable accounting records and ensuring legal compliance.
- The payment of wages (Form 02- LĐTL)
- A list of salary reduction (Form 10- LĐTL)
- The allocation of wages and social insurance (Form 11- LĐTL)
- Request for advance (Form 03- TT)
- Advance payment certificate (Form 04- TT)
- Request for payment (Form No 05)
- A list of payment (Form 09-TT)
- The list of the fund (Form No 08)
- Records of the delivery of fixed assets (fixed assets Form 01)
- Records of the liquidation of fixed assets (Form 02- and amortization)
- Records of fixed asset inventory (Form 05- and amortization)
- Spreadsheet and allocate depreciation (Form 06)
- Warehouse receipt (Form No 01 VT)
- Inventory recordsof materials, tools, products, goods (Form 05- VT)
All accounting vouchers, whether created internally or received externally, must be submitted to the Finance and Accounting Department for centralized processing The department is responsible for inspecting, verifying the legitimacy and validity of each document, and recording financial transactions accurately Once verified, these documents will be securely stored, and after the designated retention period, they will be properly disposed of in accordance with company policies.
The order of rotation of the accounting documents include the following steps:
Step 1: Prepare, reception and processing of accounting documents;
Step 2: The accountant, chief accountant checked and signed vouchers or the Director approves;
Step 3: Sort, organize accounting records, accounts and the accounting records;
Step 4: Storage and preservation of accounting documents.
The company adopted its account accounting system in accordance with Decision No 15/2006/QD-BTC dated March 20, 2006, issued by the Minister of Finance To ensure quick and accurate accounting work, the company maintains detailed accounts tailored to its organizational management and the specific nature of its production and business activities Most accounts are classified as detailed account type 2, with some even being detailed at type 3 to reflect the specific content of each account For instance, the deposit account is detailed for each bank account opened, with further specifications for each customer and supplier Additionally, the company's revenue is reflected in Account 511, which serves as a key indicator of income.
" service sales" and 51 "goods sales"
Chart 3 : Accounting in the form of general journal
Print books , report end of month, end of year
Every day, transactions are recorded in the general journal based on examined documents, forming the first step in the accounting process These entries are then posted to the appropriate accounts in the general ledger, ensuring accurate categorization Simultaneously, related accounting cards are updated to maintain detailed records After verifying data consistency, the information from the detailed ledger and accounting cards is used to prepare financial statements, providing a comprehensive overview of the company's financial position This systematic process ensures accurate and reliable financial reporting in accordance with accounting standards and SEO best practices.
Purposes of accounting is fast and accurate; therefor companies use accounting software of Viet A company, which is designed on the principle of journal form with the following procedures:
Detailed card and book General journal
Nominal and detailed ledger Trial balance
Figure 4 : Diagram of accounting in the form of computerized accounting
Print books , report end of month, end of year
Accountants rely daily on tested accounting documents and summaries to input data into accounting software, specifying debit and credit accounts This information is automatically recorded into the general ledger and related detailed records, ensuring data accuracy and integrity At month-end, accountants perform closing procedures and prepare financial reports by comparing synthetic and detailed data automatically The final step involves printing, stapling, and legally validating the general ledger and detailed accounting books, adhering to statutory requirements.
The Main Accounting Cycles Applied by the Hoang Ha Joint Stock Company
Summary table of the same documents
Documents that is used when sales and providing services of the company includes VAT invoice, contract economics, payment vouchers (receipts, notices of Bank )
When sales and providing services of the company, company’s accounts are 511, 513 – service sales and goods sales This account is structured as follows:
Debt : The net revenue transfer to Account 911 "Evaluation of business results"
Debit side: Account 511, 513 of the Company has no deductions revenue (Commercial discounts, sales discounts, sales return) because the Company do not use and do not incur this.
Credit: Service sale and goods sales implemented in the accounting period.
This has no account balance.
The accounting book of service sale and goods sales include:
- Detailed accounting books about sales, services
- Synthetic and detailed book about sales, services
2.3.2 Posting about services sales and goods sales
Accounting in the form of journal of services sales and goods sales
Account for Fixed assets
Documents of fixed assets that the company uses include: Records of fixed assets, records of revaluation of fixed assets, fixed assets card Also the company also uses
Detailed card and book General journal
Nominal and detailed ledger Trial balance
513, some other documents such as purchase invoice, shipping charges invoice, registration fees,
Account for fixed assets, the company uses account 211: Tangible fixed assets This account is structured as follows:
Debit : Cost of tangible fixed assets increase because the company issued or participated in joint venture and due to construction, retrofit, or renovating, upgrading or re-evaluation
Credit : Cost of fixed assets reduce due to sales, contributed as capital, re- evaluation
The balance of the debit: Cost of tangible fixed assets is in the company b Account 213: Intangible fixed assets
Debit : Cost of intangible assets increase during accounting period
Credit : Cost intangible assets decrease during the accounting period
The balance of the debit: Cost of intangible assets exists at the company. c Account 214: Depreciation of fixed assets
Debit : Reflecting these transactions reduced depreciation and amortization (due to liquidation or sale, )
Credit: Reflecting the increase in operational depreciation and amortization (due to depreciation, increase in re-evaluation )
The balance of the credit: depreciation and amortization is.
Also in the posting process, the company also uses other accounts, such as 331, 111.112,
- Detailed book of fixed- assets: This book dedicate to each unit, as a basis for increasing or decreasing in asset records
Posting about fixed-assets
Chart 3 : Accounting in the form of journal of fixed-assets
Print books , report end of month, end of year
Every day, fixed asset accountant receive original documents such as records of the delivery of fixed assets, liquidation records of fixed assets, fixed-assets cards
Then, Accountants record in journal and detailed accounting books: accounts 211,213,214 At the same time, information from the Journal is recorded in the accounts related as 111, 112,
At the end of the accounting period, it is essential to prepare detailed ledger accounts and a comprehensive report in the trial balance Reconciliation between the summarized (synthetic) and detailed books ensures accuracy for service and goods accounts, specifically accounts 211 and 213, as well as the trial balance Finally, the verified data from both the trial balance and the detailed records are used to accurately prepare the final financial statements.
Detailed card and book about fixed- assets General journal
Nominal and detailed ledger of fixed-assets Trial balance
SOME REMARKS ON FINANCIAL ACCOUNTING MANAGEMENT AT
Remarks on Organizational Structure of Accounting Department at Hoang Ha
3.1.1 Advantages of Organization of Accounting Division
The company's Financial and Accounting Department, consisting of 14 employees, is efficiently structured to handle a large workload Each team member has specialized responsibilities, such as managing specific accounts, ensuring tasks are clearly defined and reducing duplication This organized division of labor, overseen by the Chief Accountant, creates a cohesive and effective accounting system that enhances accuracy and operational efficiency.
The accountant of the company have a university degree and college, professional skilled, highly educated, responsive, flexible, those is very good point of the company's accounting.
With extensive knowledge and years of experience in accounting, the Chief Accountant and their team efficiently perform their duties, delivering accurate, timely, and fair accounting information This ensures transparent financial reporting, effectively highlighting the company's financial position and overall business operations.
3.1.2 Disadvantages of Organization of Accounting Division
There are many advantages of the company's accounting system, however this apparatus remains one of the following disadvantages:
Many young, highly qualified accountants lack extensive practical work experience, which can impact the quality of their work Additionally, their limited computer skills, particularly in Excel, hinder their efficiency and accuracy in financial tasks The low level of computerization within their workflows leads to frequent errors during data entry and calculations Consequently, these deficiencies can result in flawed accounting outputs and reduced overall professionalism in accounting processes.
The heavy workload in accounting tasks such as fixed assets, banking, and tax revenue places significant pressure on employees This intense workload often prevents staff from resolving issues promptly, increasing the likelihood of errors and reducing overall efficiency.
The significant geographical distance between the Quang Ninh subsidiary, Hanoi office, and the company's accounting department in Thai Binh can hinder timely and efficient accounting processes, potentially leading to delays in financial reporting and workflow disruptions.
Remarks on Financial Accounting Management at Hoang Ha Joint Stock Company
General accounting work is done well, reflect and provide exactly the fluctuations of assets and capital, the business situation of the company Specifically:
Our company is equipped with modern facilities and advanced technology to process data efficiently The integration of computers and specialized accounting software reduces staff workload while ensuring accurate and timely financial information These innovations enable quick decision-making and improve overall management efficiency.
Our company ensures the legality of vouchers by strictly adhering to the state-issued voucher regime, supporting compliance and transparency Implementing a well-organized arrangement of scientific evidence streamlines accounting processes, enabling efficient and timely verification The company maintains a clear voucher rotation sequence, ensuring accurate recording and minimizing errors Additionally, roles and responsibilities are clearly defined across departments, facilitating smooth voucher management and operational workflow.
The ledger system, standardized by the Ministry of Finance, ensures that a company's accounting records are organized systematically, making data retrieval faster and more efficient This structured approach reduces printing costs and saves time in managing financial information Additionally, the use of a general journal facilitates the detailed and regular tracking of daily economic transactions, promoting accuracy and transparency in financial reporting.
The company ensures compliance by using the correct account form prescribed by the Ministry of Finance Additionally, a dedicated detailed account is established to enhance monitoring and facilitate account checks It is also important to note that using unrelated account numbers is not required.
Financial statements and management reports provide comprehensive and detailed insights into a company's business performance, enabling stakeholders to assess the current financial situation effectively These reports are essential for making informed decisions and developing strategic development plans for the future, ensuring sustainable growth and financial stability.
Although there are many advantages in accounting management but the company still exists some disadvantages as follow:
Timely organization and collection of documents are crucial for accurate recording in accounting books Delays in circulating working documents among Finance and Accounting departments can hinder timely data entry Although many documents are generated at the end of each month, additional documents created throughout the month often are not processed until months later, leading to discrepancies in financial records Ensuring prompt documentation and efficient communication between departments improves the accuracy and reliability of financial reporting.
The company has prepared a full set of financial statements in accordance with Ministry of Finance requirements; however, these statements are not yet finalized Without detailed analysis, the company has not identified the causes or extent of factors impacting its business operations Key issues include the need to reduce production costs and lower business expenses without compromising product quality, improving debt recovery processes, and preventing prolonged capital misappropriation Addressing these areas is essential for enhancing overall financial health and operational efficiency.
Chapter 1: OVERVIEW OF HOANG HA JOINT STOCK COMPANY 2
1.1.Establishment and Development of Hoang Ha Joint Stock Company 2
1.1.1 Background information of the company 2
1.1.2 Some achievements of the company 4
1.1.3 Relationship between the company and related parties 5
1.1.4 Market shares of the Company 6
1.2 Characteristics of the Business Operation of Hoang Ha JSC 8
1.2.2 Features of the Business Operation 9
1.2.2.2 Characteristics of products and services 10
1.2.Organizational Structure of Hoang Ha Joint Stock Company 13
1.3.Organizational Structure of Hoang Ha Joint Stock Company 13
1.3.1.Overview of labor situation in the company 13
1.3.3 Functions and responsibilities of departments inside the company 15
1.4 Financial Position and Operational Results of the Hoang Ha Joint Stock Company 19
1.4.1 Financial Position in recent years 19
Chapter 2: ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM AT HOANG
2.1 Accounting Department of the Hoang Ha Joint Stock Company 26
2.1.1 Organizational structure & staffing in the Accounting Department 26
2.1.2 Functions & responsibilities of each accountants in the Accounting Department 26
2.1.3 The position of accounting labors of the company 28
2.2 Accounting System Applied at the Hoang Ha Joint Stock Company 29
2.2.1 The Main Accounting Policies Adopted 29
2.3 The Main Accounting Cycles Applied by the Hoang Ha Joint Stock Company 33
2.3.2 Posting about services sales and goods sales 34
Chart 3 : Accounting in the form of journal of services sales and goods sales 35
Chapter 3: SOME REMARKS ON FINANCIAL ACCOUNTING MANAGEMENT AT
HOANG HA JOINT STOCK COMPANY 38
3.1 Remarks on Organizational Structure of Accounting Department at Hoang Ha
3.1.1 Advantages of Organization of Accounting Division 38
3.1.2 Disadvantages of Organization of Accounting Division 38
3.2 Remarks on Financial Accounting Management at Hoang Ha Joint Stock Company 39