Luận văn the meaning and role of cash flow statements in vietnamese enterprise the case of ha noi milk joint stock company hanoimilk jsc

LETTER OF DECLARATION Thereby declare that the Graduation Project “The meaning and role of cash flow statement in Vietnamese Enterprises- The case of Ha Noi Milk joint stock company Hano

LETTER OF DECLARATION

Thereby declare that the Graduation Project “The meaning and role of cash

flow statement in Vietnamese Enterprises- The case of Ha Noi Milk joint stock

company (Hanoimilk JSC)” is the results of my own research and has never been published in any work of others During the implementation process of this project,

I have seriously taken research ethics, all findings of this project are results of my

own research and surveys; all references in this project are clearly cited according to

regulations

I take full responsibility for the fidelity of the number and data and other

contents of my graduation project

Hanoi, 27/03/2020

Student

(Signature and Full name)

ACKNOWLEDGEMENT

A completed study would not be done without any assistance Therefore, I

gratefully give acknowledgement to their support and motivation during the time

of doing this research as a requirement of completing my Degree of

Accounting,analyzing and auditing

First of all, I would like to thank the Intemational School- Vietnam National

University, Ha Noi (VNU-IS) where I have been for 4 years of college VNU-IS

is like my second home, which has helped me to grow, be more active and

expand my knowledge - not only specialized knowledge but also soft skills as

well as social knowledge It is the closeness, psychology of the school and

teachers that helped me quickly integrate into the university environment, And

now, when I prepare to graduate, I really want to express my deepest thanks to the teachers in the Executive Board, the teachers in all departments, especially

the teachers of AC program, who directly accompanies, teaches us knowledge

Thanks to the enthusiastic teaching of the teachers, I have the knowledge to do

this project

Secondly, I would like to express my endless thanks and gratefulness to my supervisor MSc Nguyen Tra My Her kindly support and continuous advice went through the process of completion of my thesis Her encouragement and

comments had significantly enriched and improved my work Without her

motivation and directions, the report would have been impossible to be done effectively

As a part of the project, my thesis has been done by contributions of many relevant students and lecturers So far, I would like to thank the teachers and friends who

helped me complete the survey to get data for my report

w

As last, my deeply thanks come to my family and all my friends Their kindly help, care, motivation gave me strength and lifted me up all the trouble for the rest of

my li

CHAPTER 1: INTRODUCTION

Financial statements are the most important product of the accounting process, the

basic tool to disclose accounting information to the outside In particular, the Cash

Flow Statement is one of the important financial statements, reflecting the

formation and amount of money arising in the reporting period of the enterprise So,

Does CFS really help managers and investors to make business decisions?

Based on the cash flow statement, we can assess the ability to generate money in the

period and in the future, evaluate the solvency of the business, evaluate the ability

of investing in idle cash through business purchases of bonds, bonds, and loans

This is the tool to estimate money, build a plan As a result, the Cash Flow

Statement is an important general financial statement, which is of great interest to

many investors, lenders, suppliers, credit institutions and financial institutions

Not only that, the CFS is an important tool in the system of economic management

tools in general and business management in particular Thanks to the information about cash flow on the Cash Flow Statement to make appropriate business decisions Therefore, providing CFS is essential, especially for developing

economies like Vietnam that wants to integrate and call for investment from abroad

Accounting Standard No 7 (IAS7) or VAS 24 (Cash flow statement) is one of the

indispensable financial statements for enterprises in the market economy However,

the preparing of cash flow statements is not a mandatory report in the Vietnamese

accounting system In fact, some small and medium enterprises still do not have much interest in it Perhaps, it is due to the difficulty of preparing or not aware of its

importance in the financial reporting system in general and in particular in the

management of enterprises Therefore, my graduation thesis topic is: "The Meaning And Role Of Cash Flow Statements In Vietnamese Enterprise- The Case Of Ha Noi Milk Joint Stock Company (Hanoimilk.Jsc)" HNM is a company established in

2001 and started operating in 2003, It is a company trading in a wide range of

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

the change of before and after have incidents but can still assess the overall situation

of the years combined with the information | mentioned in finding part

Although Cash flow statement is an issue that has been mentioned by many authors Lowever, | still want to give important evidence to show the meaning, the role of CFS with Vietnamese businesses To reach this conclusion we have to go through a

products and services, the main products being manufacturing and trading dairy products such as cow's milk, soya milk ; With modem equipment lines, advanced technology, professional and enthusiastic staff, Hanoinilk constantly improves the quality control in the process of purchasing raw materials and manufactwing to bring to people safe products with precious nutrition every day On the national

children and about 8-9% of the total sterilized milk market in general

(vndirect.com.yn) The company has grown and become one of the leading

enterprises of the dairy processing industry In the first years, from 2004 to mid-

2008, LINM ranked third in Vietnam's dairy market share Llowever, the milk brand

faced difficulties when the 2008 melamine contaminated milk crisis was made and

the wrong decision with Ihe tilk carton made consumers shaky Since then,

Tlanoimilk's business results seem to be plummeting when the profit margin is only

around 0.6% -1% (2013-2018), from 2015 to the present, Hanoimilk has never

completed a business strategy, the stock down to VND) 3100/shure while closing

ptice for the first trading day was VND 59500/share (finance.vietstock.vn, 2020)

Not only that, in Oclober 2019, HNM shares were decided ta suspend trading by the

Hanoi Stock Exchange (HINX) The reasen stated by HNX was that Hanounilk could not overcome the cause of the special control and continued to violate the

disclosure Up to this poinl, he Company has nol yel released the audited [inancial

(Tintucchungkhoan.vn, 2019) Therefore, it can be seen that the publication of full

financial statements is very necessary, especially CFS to properly reflect the cash

flow in and out of the business to help investors and manager makes the right

‘business decisions It can be seen that IINM is a company with a lot of fluctuations

in both business results and evens on the stock markel Thal is why T chose HNM

as a prime example for my report analysis Moreover, In the years after 2008 were

quite similar in business situation, so instead of choosing to discuss the most recent

3 years, the period of lime was chosen lor his study 1s 2008, 2009 and 2010 to see

TABLE OF NOTATIONS AND ABBREVIATIONS

FCF Financing from cash flow

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

the change of before and after have incidents but can still assess the overall situation

of the years combined with the information | mentioned in finding part

Although Cash flow statement is an issue that has been mentioned by many authors Lowever, | still want to give important evidence to show the meaning, the role of CFS with Vietnamese businesses To reach this conclusion we have to go through a

TABLE OF NOTATIONS AND ABBREVIATIONS

FCF Financing from cash flow

products and services, the main products being manufacturing and trading dairy products such as cow's milk, soya milk ; With modem equipment lines, advanced technology, professional and enthusiastic staff, Hanoinilk constantly improves the quality control in the process of purchasing raw materials and manufactwing to bring to people safe products with precious nutrition every day On the national

children and about 8-9% of the total sterilized milk market in general

(vndirect.com.yn) The company has grown and become one of the leading

enterprises of the dairy processing industry In the first years, from 2004 to mid-

2008, LINM ranked third in Vietnam's dairy market share Llowever, the milk brand

faced difficulties when the 2008 melamine contaminated milk crisis was made and

the wrong decision with Ihe tilk carton made consumers shaky Since then,

Tlanoimilk's business results seem to be plummeting when the profit margin is only

around 0.6% -1% (2013-2018), from 2015 to the present, Hanoimilk has never

completed a business strategy, the stock down to VND) 3100/shure while closing

ptice for the first trading day was VND 59500/share (finance.vietstock.vn, 2020)

Not only that, in Oclober 2019, HNM shares were decided ta suspend trading by the

Hanoi Stock Exchange (HINX) The reasen stated by HNX was that Hanounilk could not overcome the cause of the special control and continued to violate the

disclosure Up to this poinl, he Company has nol yel released the audited [inancial

(Tintucchungkhoan.vn, 2019) Therefore, it can be seen that the publication of full

financial statements is very necessary, especially CFS to properly reflect the cash

flow in and out of the business to help investors and manager makes the right

‘business decisions It can be seen that IINM is a company with a lot of fluctuations

in both business results and evens on the stock markel Thal is why T chose HNM

as a prime example for my report analysis Moreover, In the years after 2008 were

quite similar in business situation, so instead of choosing to discuss the most recent

3 years, the period of lime was chosen lor his study 1s 2008, 2009 and 2010 to see

ABSTRACT

Vietnam is a developing country and aims at international integration, so its

financial statements are also aiming to achieve IFRS standards Although Cash

flow statement is not a mandatory financial statement in Vietnam, its significant

meaning has encouraged many companies to prepare it The purpose of this

research is to highlight the meaning and role of cash flow statements, especially

for Vietnamese enterprises Ha Noi Milk is the company mentioned in the article because Hanoi Milk is the company that has gone through all the cycles of an

enterprise: introduction, growth, maturity, decline and now is recovery

Therefore, when discussing this company, we can see clearly how the change and the problems encountered affected the company through the cash flow

statement The survey conducted in this study revealed that cash flow statement

was especially meaningful for two groups of financial statement users: managers

(36%) and investors (36%) Moreover, the study showed the possible risks of

analysing cash flow from Balance sheet or Income statement instead of Cash flow statement to have better view about the meaning and role of Cash flow

statement.

CHAPTER 1: INTRODUCTION

Financial statements are the most important product of the accounting process, the

basic tool to disclose accounting information to the outside In particular, the Cash

Flow Statement is one of the important financial statements, reflecting the

formation and amount of money arising in the reporting period of the enterprise So,

Does CFS really help managers and investors to make business decisions?

Based on the cash flow statement, we can assess the ability to generate money in the

period and in the future, evaluate the solvency of the business, evaluate the ability

of investing in idle cash through business purchases of bonds, bonds, and loans

This is the tool to estimate money, build a plan As a result, the Cash Flow

Statement is an important general financial statement, which is of great interest to

many investors, lenders, suppliers, credit institutions and financial institutions

Not only that, the CFS is an important tool in the system of economic management

tools in general and business management in particular Thanks to the information about cash flow on the Cash Flow Statement to make appropriate business decisions Therefore, providing CFS is essential, especially for developing

economies like Vietnam that wants to integrate and call for investment from abroad

Accounting Standard No 7 (IAS7) or VAS 24 (Cash flow statement) is one of the

indispensable financial statements for enterprises in the market economy However,

the preparing of cash flow statements is not a mandatory report in the Vietnamese

accounting system In fact, some small and medium enterprises still do not have much interest in it Perhaps, it is due to the difficulty of preparing or not aware of its

importance in the financial reporting system in general and in particular in the

management of enterprises Therefore, my graduation thesis topic is: "The Meaning And Role Of Cash Flow Statements In Vietnamese Enterprise- The Case Of Ha Noi Milk Joint Stock Company (Hanoimilk.Jsc)" HNM is a company established in

2001 and started operating in 2003, It is a company trading in a wide range of

LIST OF TABLE AND CHARTS

1 List of table

Table 1: Summary of answer about the purpose of cash flow analysis | Page 38 Table 2: Cash ratio group represents the contribution of each revenue | Page 45 stream to the total cash inflows in the period of HNM

Table 3: Comparison of CFS preparation and indicators of the two Page 46

methods

Table 4: Summary of answer about what is the risk that users of Page 56

financial information obtain information regarding Cash Flow from

other financial statements, such as Balance Sheet and Income

Statement

Table 5: Ratio about cash of HNM in period of 2008-2010 Page 62

2 List of charts

Chart 1- Number of students and employees who responded Page 18

Chart 3- To whom is the CFS most meaningful? Page 22

Chart 4- Which statements have the most useful? Page 23 Chart 5- which method do you think is the most practical? Page 24 Chart 6- OCF is the most meaningful for a business Page 24

LIST OF TABLE AND CHARTS

1 List of table

Table 1: Summary of answer about the purpose of cash flow analysis | Page 38 Table 2: Cash ratio group represents the contribution of each revenue | Page 45 stream to the total cash inflows in the period of HNM

Table 3: Comparison of CFS preparation and indicators of the two Page 46

methods

Table 4: Summary of answer about what is the risk that users of Page 56

financial information obtain information regarding Cash Flow from

other financial statements, such as Balance Sheet and Income

Statement

Table 5: Ratio about cash of HNM in period of 2008-2010 Page 62

2 List of charts

Chart 1- Number of students and employees who responded Page 18

Chart 3- To whom is the CFS most meaningful? Page 22

Chart 4- Which statements have the most useful? Page 23 Chart 5- which method do you think is the most practical? Page 24 Chart 6- OCF is the most meaningful for a business Page 24

TABLE OF NOTATIONS AND ABBREVIATIONS

FCF Financing from cash flow

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

products and services, the main products being manufacturing and trading dairy products such as cow's milk, soya milk ; With modem equipment lines, advanced technology, professional and enthusiastic staff, Hanoinilk constantly improves the quality control in the process of purchasing raw materials and manufactwing to bring to people safe products with precious nutrition every day On the national

children and about 8-9% of the total sterilized milk market in general

(vndirect.com.yn) The company has grown and become one of the leading

enterprises of the dairy processing industry In the first years, from 2004 to mid-

2008, LINM ranked third in Vietnam's dairy market share Llowever, the milk brand

faced difficulties when the 2008 melamine contaminated milk crisis was made and

the wrong decision with Ihe tilk carton made consumers shaky Since then,

Tlanoimilk's business results seem to be plummeting when the profit margin is only

around 0.6% -1% (2013-2018), from 2015 to the present, Hanoimilk has never

completed a business strategy, the stock down to VND) 3100/shure while closing

ptice for the first trading day was VND 59500/share (finance.vietstock.vn, 2020)

Not only that, in Oclober 2019, HNM shares were decided ta suspend trading by the

Hanoi Stock Exchange (HINX) The reasen stated by HNX was that Hanounilk could not overcome the cause of the special control and continued to violate the

disclosure Up to this poinl, he Company has nol yel released the audited [inancial

(Tintucchungkhoan.vn, 2019) Therefore, it can be seen that the publication of full

financial statements is very necessary, especially CFS to properly reflect the cash

flow in and out of the business to help investors and manager makes the right

‘business decisions It can be seen that IINM is a company with a lot of fluctuations

in both business results and evens on the stock markel Thal is why T chose HNM

as a prime example for my report analysis Moreover, In the years after 2008 were

quite similar in business situation, so instead of choosing to discuss the most recent

3 years, the period of lime was chosen lor his study 1s 2008, 2009 and 2010 to see

the change of before and after have incidents but can still assess the overall situation

of the years combined with the information | mentioned in finding part

Although Cash flow statement is an issue that has been mentioned by many authors Lowever, | still want to give important evidence to show the meaning, the role of CFS with Vietnamese businesses To reach this conclusion we have to go through a

TABLE OF NOTATIONS AND ABBREVIATIONS

FCF Financing from cash flow

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

the change of before and after have incidents but can still assess the overall situation

of the years combined with the information | mentioned in finding part

Although Cash flow statement is an issue that has been mentioned by many authors Lowever, | still want to give important evidence to show the meaning, the role of CFS with Vietnamese businesses To reach this conclusion we have to go through a

ABSTRACT

Vietnam is a developing country and aims at international integration, so its

financial statements are also aiming to achieve IFRS standards Although Cash

flow statement is not a mandatory financial statement in Vietnam, its significant

meaning has encouraged many companies to prepare it The purpose of this

research is to highlight the meaning and role of cash flow statements, especially

for Vietnamese enterprises Ha Noi Milk is the company mentioned in the article because Hanoi Milk is the company that has gone through all the cycles of an

enterprise: introduction, growth, maturity, decline and now is recovery

Therefore, when discussing this company, we can see clearly how the change and the problems encountered affected the company through the cash flow

statement The survey conducted in this study revealed that cash flow statement

was especially meaningful for two groups of financial statement users: managers

(36%) and investors (36%) Moreover, the study showed the possible risks of

analysing cash flow from Balance sheet or Income statement instead of Cash flow statement to have better view about the meaning and role of Cash flow

statement.

TABLE OF NOTATIONS AND ABBREVIATIONS

FCF Financing from cash flow

CHAPTER 1: INTRODUCTION

Financial statements are the most important product of the accounting process, the

basic tool to disclose accounting information to the outside In particular, the Cash

Flow Statement is one of the important financial statements, reflecting the

formation and amount of money arising in the reporting period of the enterprise So,

Does CFS really help managers and investors to make business decisions?

Based on the cash flow statement, we can assess the ability to generate money in the

period and in the future, evaluate the solvency of the business, evaluate the ability

of investing in idle cash through business purchases of bonds, bonds, and loans

This is the tool to estimate money, build a plan As a result, the Cash Flow

Statement is an important general financial statement, which is of great interest to

many investors, lenders, suppliers, credit institutions and financial institutions

Not only that, the CFS is an important tool in the system of economic management

tools in general and business management in particular Thanks to the information about cash flow on the Cash Flow Statement to make appropriate business decisions Therefore, providing CFS is essential, especially for developing

economies like Vietnam that wants to integrate and call for investment from abroad

Accounting Standard No 7 (IAS7) or VAS 24 (Cash flow statement) is one of the

indispensable financial statements for enterprises in the market economy However,

the preparing of cash flow statements is not a mandatory report in the Vietnamese

accounting system In fact, some small and medium enterprises still do not have much interest in it Perhaps, it is due to the difficulty of preparing or not aware of its

importance in the financial reporting system in general and in particular in the

management of enterprises Therefore, my graduation thesis topic is: "The Meaning And Role Of Cash Flow Statements In Vietnamese Enterprise- The Case Of Ha Noi Milk Joint Stock Company (Hanoimilk.Jsc)" HNM is a company established in

2001 and started operating in 2003, It is a company trading in a wide range of

CHAPTER 1: INTRODUCTION

Financial statements are the most important product of the accounting process, the

basic tool to disclose accounting information to the outside In particular, the Cash

Flow Statement is one of the important financial statements, reflecting the

formation and amount of money arising in the reporting period of the enterprise So,

Does CFS really help managers and investors to make business decisions?

Based on the cash flow statement, we can assess the ability to generate money in the

period and in the future, evaluate the solvency of the business, evaluate the ability

of investing in idle cash through business purchases of bonds, bonds, and loans

This is the tool to estimate money, build a plan As a result, the Cash Flow

Statement is an important general financial statement, which is of great interest to

many investors, lenders, suppliers, credit institutions and financial institutions

Not only that, the CFS is an important tool in the system of economic management

tools in general and business management in particular Thanks to the information about cash flow on the Cash Flow Statement to make appropriate business decisions Therefore, providing CFS is essential, especially for developing

economies like Vietnam that wants to integrate and call for investment from abroad

Accounting Standard No 7 (IAS7) or VAS 24 (Cash flow statement) is one of the

indispensable financial statements for enterprises in the market economy However,

the preparing of cash flow statements is not a mandatory report in the Vietnamese

accounting system In fact, some small and medium enterprises still do not have much interest in it Perhaps, it is due to the difficulty of preparing or not aware of its

importance in the financial reporting system in general and in particular in the

management of enterprises Therefore, my graduation thesis topic is: "The Meaning And Role Of Cash Flow Statements In Vietnamese Enterprise- The Case Of Ha Noi Milk Joint Stock Company (Hanoimilk.Jsc)" HNM is a company established in

2001 and started operating in 2003, It is a company trading in a wide range of

CHAPTER 1: INTRODUCTION

Financial statements are the most important product of the accounting process, the

basic tool to disclose accounting information to the outside In particular, the Cash

Flow Statement is one of the important financial statements, reflecting the

formation and amount of money arising in the reporting period of the enterprise So,

Does CFS really help managers and investors to make business decisions?

Based on the cash flow statement, we can assess the ability to generate money in the

period and in the future, evaluate the solvency of the business, evaluate the ability

of investing in idle cash through business purchases of bonds, bonds, and loans

This is the tool to estimate money, build a plan As a result, the Cash Flow

Statement is an important general financial statement, which is of great interest to

many investors, lenders, suppliers, credit institutions and financial institutions

Not only that, the CFS is an important tool in the system of economic management

tools in general and business management in particular Thanks to the information about cash flow on the Cash Flow Statement to make appropriate business decisions Therefore, providing CFS is essential, especially for developing

economies like Vietnam that wants to integrate and call for investment from abroad

Accounting Standard No 7 (IAS7) or VAS 24 (Cash flow statement) is one of the

indispensable financial statements for enterprises in the market economy However,

the preparing of cash flow statements is not a mandatory report in the Vietnamese

accounting system In fact, some small and medium enterprises still do not have much interest in it Perhaps, it is due to the difficulty of preparing or not aware of its

importance in the financial reporting system in general and in particular in the

management of enterprises Therefore, my graduation thesis topic is: "The Meaning And Role Of Cash Flow Statements In Vietnamese Enterprise- The Case Of Ha Noi Milk Joint Stock Company (Hanoimilk.Jsc)" HNM is a company established in

2001 and started operating in 2003, It is a company trading in a wide range of

products and services, the main products being manufacturing and trading dairy products such as cow's milk, soya milk ; With modem equipment lines, advanced technology, professional and enthusiastic staff, Hanoinilk constantly improves the quality control in the process of purchasing raw materials and manufactwing to bring to people safe products with precious nutrition every day On the national

children and about 8-9% of the total sterilized milk market in general

(vndirect.com.yn) The company has grown and become one of the leading

enterprises of the dairy processing industry In the first years, from 2004 to mid-

2008, LINM ranked third in Vietnam's dairy market share Llowever, the milk brand

faced difficulties when the 2008 melamine contaminated milk crisis was made and

the wrong decision with Ihe tilk carton made consumers shaky Since then,

Tlanoimilk's business results seem to be plummeting when the profit margin is only

around 0.6% -1% (2013-2018), from 2015 to the present, Hanoimilk has never

completed a business strategy, the stock down to VND) 3100/shure while closing

ptice for the first trading day was VND 59500/share (finance.vietstock.vn, 2020)

Not only that, in Oclober 2019, HNM shares were decided ta suspend trading by the

Hanoi Stock Exchange (HINX) The reasen stated by HNX was that Hanounilk could not overcome the cause of the special control and continued to violate the

disclosure Up to this poinl, he Company has nol yel released the audited [inancial

(Tintucchungkhoan.vn, 2019) Therefore, it can be seen that the publication of full

financial statements is very necessary, especially CFS to properly reflect the cash

flow in and out of the business to help investors and manager makes the right

‘business decisions It can be seen that IINM is a company with a lot of fluctuations

in both business results and evens on the stock markel Thal is why T chose HNM

as a prime example for my report analysis Moreover, In the years after 2008 were

quite similar in business situation, so instead of choosing to discuss the most recent

3 years, the period of lime was chosen lor his study 1s 2008, 2009 and 2010 to see

CHAPTER 1: INTRODUCTION AšNN AikeidộN41NAIsaAMEiatidcaiinisdanlaasosaosi TỔ:

CHAPTER 2: LITERATURE REVIEW -5255522ss22 seo 13

GHAPTER 3:METLHODOLOGY .ìoooenieneieaieaieesenssraroalEE

products and services, the main products being manufacturing and trading dairy products such as cow's milk, soya milk ; With modem equipment lines, advanced technology, professional and enthusiastic staff, Hanoinilk constantly improves the quality control in the process of purchasing raw materials and manufactwing to bring to people safe products with precious nutrition every day On the national

children and about 8-9% of the total sterilized milk market in general

(vndirect.com.yn) The company has grown and become one of the leading

enterprises of the dairy processing industry In the first years, from 2004 to mid-

2008, LINM ranked third in Vietnam's dairy market share Llowever, the milk brand

faced difficulties when the 2008 melamine contaminated milk crisis was made and

the wrong decision with Ihe tilk carton made consumers shaky Since then,

Tlanoimilk's business results seem to be plummeting when the profit margin is only

around 0.6% -1% (2013-2018), from 2015 to the present, Hanoimilk has never

completed a business strategy, the stock down to VND) 3100/shure while closing

ptice for the first trading day was VND 59500/share (finance.vietstock.vn, 2020)

Not only that, in Oclober 2019, HNM shares were decided ta suspend trading by the

Hanoi Stock Exchange (HINX) The reasen stated by HNX was that Hanounilk could not overcome the cause of the special control and continued to violate the

disclosure Up to this poinl, he Company has nol yel released the audited [inancial

(Tintucchungkhoan.vn, 2019) Therefore, it can be seen that the publication of full

financial statements is very necessary, especially CFS to properly reflect the cash

flow in and out of the business to help investors and manager makes the right

‘business decisions It can be seen that IINM is a company with a lot of fluctuations

in both business results and evens on the stock markel Thal is why T chose HNM

as a prime example for my report analysis Moreover, In the years after 2008 were

quite similar in business situation, so instead of choosing to discuss the most recent

3 years, the period of lime was chosen lor his study 1s 2008, 2009 and 2010 to see

the change of before and after have incidents but can still assess the overall situation

of the years combined with the information | mentioned in finding part

Although Cash flow statement is an issue that has been mentioned by many authors Lowever, | still want to give important evidence to show the meaning, the role of CFS with Vietnamese businesses To reach this conclusion we have to go through a

ABSTRACT

Vietnam is a developing country and aims at international integration, so its

financial statements are also aiming to achieve IFRS standards Although Cash

flow statement is not a mandatory financial statement in Vietnam, its significant

meaning has encouraged many companies to prepare it The purpose of this

research is to highlight the meaning and role of cash flow statements, especially

for Vietnamese enterprises Ha Noi Milk is the company mentioned in the article because Hanoi Milk is the company that has gone through all the cycles of an

enterprise: introduction, growth, maturity, decline and now is recovery

Therefore, when discussing this company, we can see clearly how the change and the problems encountered affected the company through the cash flow

statement The survey conducted in this study revealed that cash flow statement

was especially meaningful for two groups of financial statement users: managers

(36%) and investors (36%) Moreover, the study showed the possible risks of

analysing cash flow from Balance sheet or Income statement instead of Cash flow statement to have better view about the meaning and role of Cash flow

statement.

ABSTRACT

Vietnam is a developing country and aims at international integration, so its

financial statements are also aiming to achieve IFRS standards Although Cash

flow statement is not a mandatory financial statement in Vietnam, its significant

meaning has encouraged many companies to prepare it The purpose of this

research is to highlight the meaning and role of cash flow statements, especially

for Vietnamese enterprises Ha Noi Milk is the company mentioned in the article because Hanoi Milk is the company that has gone through all the cycles of an

enterprise: introduction, growth, maturity, decline and now is recovery

Therefore, when discussing this company, we can see clearly how the change and the problems encountered affected the company through the cash flow

statement The survey conducted in this study revealed that cash flow statement

was especially meaningful for two groups of financial statement users: managers

(36%) and investors (36%) Moreover, the study showed the possible risks of

analysing cash flow from Balance sheet or Income statement instead of Cash flow statement to have better view about the meaning and role of Cash flow

statement.

ABSTRACT

Vietnam is a developing country and aims at international integration, so its

financial statements are also aiming to achieve IFRS standards Although Cash

flow statement is not a mandatory financial statement in Vietnam, its significant

meaning has encouraged many companies to prepare it The purpose of this

research is to highlight the meaning and role of cash flow statements, especially

for Vietnamese enterprises Ha Noi Milk is the company mentioned in the article because Hanoi Milk is the company that has gone through all the cycles of an

enterprise: introduction, growth, maturity, decline and now is recovery

Therefore, when discussing this company, we can see clearly how the change and the problems encountered affected the company through the cash flow

statement The survey conducted in this study revealed that cash flow statement

was especially meaningful for two groups of financial statement users: managers

(36%) and investors (36%) Moreover, the study showed the possible risks of

analysing cash flow from Balance sheet or Income statement instead of Cash flow statement to have better view about the meaning and role of Cash flow

statement.