• tJt1J Auditing and Consulting Co Ltd I I I I U I I U U I VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE U AUDITED FINANCIAL STATEMENTS S FOR THE YEAR ENDED 31 DECEMBER 2022 S S a a a U a a a I I U a a a I U a U Hanoi, June 2023 U p a VIETNAM NATIONAL UNWERSITY OF AGRICULTURE Trau Quy town, Gia Lam district, Hanoi U I TABLE OF CONTENTS p CONTENT PAGE(S) p STATEMENT OF THE BOARD OF DIRECTORS 2-3 I I INDEPENDENT AUDITORS' REPORT 4-5 U STATEMENT OF FINANCIAL POSITION 6 U STATEMENT OF FINANCIAL ACTIVITIES 7 U, U CASH FLOW STATEMENT 8 U NOTES TO THE FINANCIAL STATEMENTS 9 - 24 I I U U, I U I I I U S S S I S a 1 a U VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE • Trau Quy town, Gia Lam district, Hanoi 1 STATEMENT OF THE BOARD OF DIRECTORS The Board of Directors of Vietnam National University of Agriculture (hereinafter referred to as "VNUA") presents this report together with VNUA's audited financial statements for the • year ended 31 December 2022. U BOARD OF DiRECTORS U Members of the Board of Directors of VNUA who held office during the year 2022 and to the • date of this report are: U Board of Directors Ms. Nguyen Thi Lan Director Mr. Pham Van Cuong Deputy Director • Mr. Pham Bao Duong Deputy Director U Mr. Vu Ngoc Huyen Deputy Director U Chief Accountant • Mr. Tran Quang Trung U EVENTS AFTER THE BALANCE SHEET DATE U The Board of Directors confirms that there have been no significant events occurring after the U balance sheet date which would require adjustments to or disclosures to be made in the financial statements. U AUDITORS U The accompanying financial statements for the year ended 31 December 2022 have been • audited by UHY Auditing and Consulting Company Limited. I BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY U The Board of Directors of VNUA is responsible for preparing the financial statements for the year ended 31 December 2022, which give a true and fair view of the financial position of I VNUA and of its results of operations and cash flows for the year. In preparing these financial statements, the Board of Directors is required to: U • Select suitable accounting policies and then apply them consistently; i • Make judgments and estimates that are reasonable and prudent; I • State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the financial statements; • Prepare the fmancial statements on the going-concern basis unless it is inappropriate to presume that VNUA will continue in business; I • Establishing and implementing an internal control system effectively to limit the risk of material misstatement due to fraud or error in preparing and presenting the Financial U Statements. I U • 2 U a VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE a Trau Quy town, Gia Lam district, Hanoi a STATEMENT OF THE BOARD OF DIRECTORS (CONT'D) U BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY (CONT'D) U The Board of Directors is responsible for ensuring that proper accounting records are kept, a which disclose, with reasonable accuracy at any time, the financial position of VNUA and to ensure that the financial statements comply with Vietnamese Accounting Standards, Public U sector accounting and related legal regulations on preparation and presentation of the financial statements. It is also responsible for safeguarding the assets of VNUA and hence for U taking reasonable steps for the prevention and detection of fraud and other inegularities. a APPROVAL OF THE FINANCIAL STATEMENTS U The Board of General Directors approved the attached Financial Statements. The Financial Statements give a true and fair view of the financial position of VNUA as at 31 December a 2022, as well as the results of operations and cash flows for the year then ended, in accordance with Vietnamese Accounting Standards, Public sector accounting and the relevant U legal requirements for preparing and presenting the Financial Statements. U the Board of Directors, a U a a a Nguyen Thi Lan C Director U Hanoi, 28 June 2023 U a I a I a . U U a a U U U 3 U AUDITING AND CONSULTING CO LTD (JH,,J U No.: 72l/2023/UHY-.BCKT U INDEPENDENT AUDITORS' REPORT U To: The Board of Directors of Vietnam National University of Agriculture U We have audited the accompanying financial statements of Vietnam National University of U Agriculture (hereinafter referred to as the "VNIJA") which were prepared on 28 June 2023 as set out on pages 06 to 24 herein, including the Statement of Financial Position as at 31 December U 2022, the Statement of Financial Activities and Cash Flow Statement for the year then ended and Notes to the fmancial statements. U Responsibilities of the Board of Directors U The Board of Directors of VNTJA is responsible for preparing and presenting the financial statements in a true and fair view in conformity with Vietnamese Accounting Standards, Public U sector accounting and related legal regulations on the preparation and presentation of the financial statements and for the internal control that the Board of Directors determines is I U necessary to enable the preparation and presentation of the financial statements that are free from material misstatements, whether due to fraud or error. U Responsibilities of the Auditors U Our responsibility is to express an opinion on these financial statements based on our audit. We I. conducted our audit in accordance with Vietnamese Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and U disclosures in the financial statements. The procedures selected depend on the auditor's • judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers U internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not • for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. U We believe that the audit evidence we have obtained is sufficient and appropriate to provide a U basis for our qualified opinion. Basis for qualified opinion U As at 31 December 2022 and 01 January 2022, VNUA still has a number of receivables and payables that have not been reconciled and confirmed. Alternative audit procedures do not provide us with sufficient audit evidence to comment on unreconciled and unconfirmed liabilities U balances and their effects on the financial statements of VNTJA for the year ended 31 December 2022, specifically as follows: U N0. . . nterza Unreconciled balance . at 01/01/2022 As at 31/12/2022 1 Trade account receivable 24,937,162,039 16,908,824,238 U 2 Prepayment to suppliers 26,895,162,157 17,240,866,496 3 Payable to the suppliers 60,566,984,123 72,023,805,545 U 4 Other receivables 39,675,483,874 17,606,217,876 5 Advances 24,738,551,684 21,931,860,764 U 6 Advance from suppliers 5,463,897,926 44,323,773,771 Head Offic 7 49,125,129,100 47,193,606,855 Roman Plaza, To Huu Street, Dai Mo Ward, U Nam Tu Liem District, Hanoi. Vietnam. Phone: 842456783999 4 www.uhy.vn INDEPENDENT AUDiTORS' REPORT (CONT'D) Basis for aualified opinion (Cont'd) Some fixed assets which are perennial animals, have died and been destroyed with historical cost of VND 2,218,600,000, accumulated depreciation value of VND 2,095,850,000 has not been recorded by the Academy: reduction of cost and accumulated depreciation of tangible fixed assets with the corresponding value in the statement of financial position; increasion the item of other operating expenses and the deficit on the income statement to the value of \'ND 122,750,000. Qualified opinion In our opinion, except for effects of the matters described in the "Basis for qualified opinion", the accompanying financial statements give a true and fair view, in all material respects, the fmancial position of VNUA as at 31 December 2022, and its fmancial performance and its cash flows for the year then ended, in accordance with Vietnamese Accounting Standards, Public sector accounting and related legal regulations on the preparation and presentation of the financial statem - - - Pham Gia Dat Hoang Thi Nga Deputy General Director Auditor Auditor's Practicing Certificate Auditor's Practicing Certificate No. 0798-2023-112-1 No. 4079-2023-112-1 For and on behalf of UHY AUDITING AND CONSULTING COMPANY LIMITED Hanoi, 28 June 2023 U U VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 3 1/12/2022 a STATEMENT OF FINANCIAL POSiTION U As at 31 December 2022 U ASSETS Code Note 31/12/2022 01/01/2022 U VND VND Cash 01 5 242,537,855,902 303,543,222,005 U Short-term fmancial investment 05 6 735,207,416,359 624,280,212,330 • Short-term receivables 10 102,389,477,583 121,675,617,763 Trade account receivable 11 7 25,281,124,265 24,937,162,039 • Advance to suppliers 12 8 20,682,027,378 32,324,420,166 Other receivables 14 9 56,426,325,940 64,414,035,558 Fixed assets 30 4,729,599,999,839 4,696,652,860,394 • Tangible fixed assets 31 10 604,687,790,040 571,463,262,421 - Cost 32 1,266,258,257,026 1,153,890,638,164 a - Depreciation and accumulated 33 (661,570,466,986) (582,427,375,743) • Intangible fixed-assets 35 11 4,124,912,209,799 4,125,189,597,973 - Cost 36 4,146,277,431,920 4,146,277,431,920 • - Amortization and accumulated 37 (21,365,222,121) (21,087,833,947) U Construction in progress 40 12 1,169,761,512,340 779,385,114,419 Other assets 45 3,473,083,446 1,978,505,169 U TOTAL ASSETS 6,982,969,345,469 6,527,515,532,080 U U RESOURCES 31/12/2022 01/01/2022 VND VND a LIABILITIES 60 5,856,131,466,999 5,471,613,715,371 U Payable to suppliers 61 13 204,284,124,817 223,396,892,748 Advances from customers 62 44,323,773,771 5,463,897,926 U Loan payable 64 81,389,183,731 U Temporary receipts 65 114,892,759,171 158,939,357,508 Advances unrecorded 67 14 5,329,494,046,578 5,015,948,898,502 U Others 68 15 81,747,578,931 67,864,668,687 U NET ASSETS 70 17 1,126,837,878,470 1,055,901,816,709 Accumulated surplus/deficit 72 U Funds 73 16 1,126,837,878,470 1,055,901,816,709 U TOTAL RESOURCES 80 6,982,969,345,469 6,527,515,532,080 U Hanoi 28 June 2023 U Prepared by Chief Accountant U HOC VlN a NONG NGH • P vIT . U bang Bach Duong Tran Quang Trung U The accompanying notes are an integral part of these financial statements 6 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 3 1/12/2022 STATEMENT OF FINANCIAL ACTiVITIES For the year ended 31 December 2022 Items Code Note Year 2022 Year 2021 VND VND Administrative and non-business activities Revenue 01 18 98,869,422,910 92,653,480,351 + From the state budget 02 18 92,840,531,942 86,742,623,088 + From aid sources, foreign loans 03 18 6,028,890,968 5,910,857,263 Cost 05 18 41,984,494,206 41,670,192,603 + Operating costs 06 18 35,955,603,238 35,759,335,340 + From aid sources, foreign loans 07 18 6,028,890,968 5,910,857,263 Surplus/deficit 09 18 56,884,928,704 50,983,287,748 Manufacturing and trading services Revenue 10 19 393,904,978,538 410,154,784,963 Cost 11 19 324,695,611,242 334,488,591,298 Surplus/deficit 12 19 69,209,367,296 75,666,193,665 Financial activities Revenue 20 20 31,129,868,980 30,289,647,980 Cost 21 20 3,983,063,633 1,852,471,437 Surplus/deficit 22 20 27,146,805,347 28,437,176,543 Other activities Revenue 30 21 9,282,000 40,765,400 Cost 31 21 1,611,000 Surplus/deficit 32 21 9,282,000 39,154,400 Business income tax charge 40 2,488,979,588 1,693,794,593 Surplus/deficit during the year 50 150,761,403,759 153,432,017,763 Distributed for funds 52 150,761,403,759 153,432,017,763 Hanoi, 28 June 2023 P 1 Prepared by Chief Accountant Di HOC VIft NÔNG NG• I VIET, i.. bang Bach Duong Tran Quang Trung The accompanying notes are an integral part of these financial statements 7 U I VIETNAM NATIONAL UNiVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 I CASH FLOW STATEMENT a (Under indirect method) For the year ended 31 December 2022 I Items Code Note Year 2022 Year 2021 U VND VND a Cash flows from main activities Surplus/deficit during the year 01 150,761,403,759 153,432,017,763 a Adjustments for: I Deprciation and amortization 02 79,420,479,417 66,956,022,627 (Gain) from investing activities 04 (27,146,805,347) (28,437,176,543) U Increase, decrease in payables 05 303,128,567,897 188,066,742,510 Increase, decrease in receivables 07 (5,382,179,053) 106,936,002,476 U Othe: cash inflows 08 70,126,928,558 443,889,500 Othe: cash outflows 09 (149,952,270,556) (28,659,002,562) U Net car hflows from operating activities 10 420,956,124,675 458,738,495,771 a Cash flow from investing activities Cash flow from investing activities 22 159,583,969,211 150,249,477,906 a Construction, fixed asset purchase 23 (425,537,553,444) (270,892,250,411) Investment in other entities 24 (260,912,005,046) (131,095,539,879) a Net ca;h from investing activities 30 (526,865,589,279) (251,738,312,384) a Cash flows from financing activities Proceeds from borrowings 31 47,281,337,525 I Repayment of brrowings 33 (2,377,239,024) Net cwhfromfinancing activities 40 44,904,098,501 a Net cash flows during the year 50 (61,005,366,103) 207,000,183,387 Cash and cash equivalents at the beginning of the year 60 5 303,543,222,005 96,543,038,618 a Cash and cash equivalents at the end of the year 70 5 242,537,855,902 303,543,222,005 U Hanoi, 28 June 2023 a Prepared by Chief Accountant a U a a Iloang Bach Duong Tran Quang Trung U U U a a a a a U The accompanying notes are an integral part of these financial statements 8 U • VIETNAM NATIONAL UNiVERSITY OF AGRICIJLTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 3 1/12/2022 • NOTES TO THE FINANCIAL STATEMENTS These notes are an integral part of and should be read in conjunction with the accompanying financial statements 1. BUSINESS HIGHLIGHTS • 1.1 OWNERSHIP STRUCTURE • Vietnam National University of Agriculture (referred to as "VNUA") is an administrative and • non-business unit, formerly the University of Agriculture and Forestry established on 12 . October 1956 under Decree No. 53/ND-NL of Ministry of Agriculture and Forestry. By December 1958, the Government issued a decision to merge the Institute of Crop Research, • the Livestock Research Institute, the Wood Research Department, and the Silvicultural Research Department with the University of Agriculture and Forestry into the Institute of a Agriculture and Forestry. By 1963, the Institute of Agriculture and Forestry was split into the University of Agriculture and the Institute of Agricultural Science. On 14 August 1967, the • Government issued a decision to change the name of the University of Agriculture into the University of Agriculture I. In 1984, University of Agriculture I was transferred from the a Ministry of Agriculture and Food Industry to the Ministry of University and Professional High 2 School. On 24/03/2008, Prime Minister issued a Decision (283/QD-TFg) renaming University I • of Agriculture Ito be Hanoi University of Agriculture. On 28 March 2014, Vietnam National University of Agriculture was established under the Ministry of Agriculture and Rural • Development on the basis of the reorganization of Hanoi University of Agriculture under the Prime Minister's Decision 441/QD-TTg. a Name of the Line Agencies: VNUA is under the management of the Ministry of Agriculture U and Rural Development. a Type of entity: VNUA is a non-business unit that is assigned autonomy in recurrent and investment expenditures according to Decision No. 873/QD-Ttg dated 17 June 2015 of the a Prime Minister. In addition, the University is also assigned by the Ministry of Agriculture and Rural Development to manage its assets according to the capital allocation mechanism for • enterprises according to Decision No. 1255/QD/BNN-TC of the Ministry of Agriculture and Rural Development. U Head office of VNUA: Trau Quy town, Gia Lam district, Hanoi city. 1.2 FUNCTIONS AND DUTIES U Training and supplying high quality human resources, research and development, and • transfering technology and new knowledge in the field of agriculture and rural development; contribute to the country's agricultural development and international integration. 1.3 STATEMENT OF COMPARABILITY IN TEE FINANCIAL STATEMENTS U VNUA's financial statements for the year ended 31 December 2022 apply public sector accounting system issued under Circular No. 107/2017/TT-BTC dated 10 October 2017 of the a Ministry of Finance. 2. FINANCIAL YEAR AND ACCOUNTING CURRENCY U 2.1 FINANCIAL YEAR The fmancial year begins on 1 January and ends on 31 December of the calendar year. The financial statements have been prepared for the year ended 31 December 2022. U 2.2 ACCOUNTING CURRENCY Accounting currency is Vietnam dong (VND) because most receipts and payments are made • inVND. a U 9 a • VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 • NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 3. ADOPTION OF ACCOUNTING STANDARDS AND SYSTEMS 3.1 ADOPTION OF ACCOUNTING STANDARDS AND SYSTEMS a The financial statements are prepared under the guidance of the Public sector accounting a issued under Circular No. 107/2017/IT-BTC dated 10 October 2017 of the Ministry of Finance. 3.2 DECLARATION OF COMPIANCE WITH ACCOUNTING STANDARDS AND a ACCOUNTING SYSTEM a The Director undertakes to comply with Vietnamese accounting standards and public sector accounting issued under Circular No.107/2017/TT-BTC dated 10 October 2017 as well as • circulars guiding the implementation of the accounting standards of the Ministry of Finance in preparing the financial statements. a • 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I 4.1 BASIS OF PREPARATION a The financial statements have been prepared on the accrual basis (except for those related to cash flows). a The accompanying financial statements, expressed in Vietnam Dong (VND), have been a prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, Public sector accounting and legal regulations on preparation and presentation of a the financial statements. a 4.2 ACCOUNTING ESTIMATES a The preparation of financial statements in conformity with Vietnamese Accounting Standards requires the Management to make estimates and assumptions that affect the reported amounts I of liabilities, assets and disclosures of contingent assets and liabilities at the reporting date and the reported amounts of revenue and expenses during the reporting year. Actual results could a differ from those estimates. 1 4.3 CASH a Cash comprise cash on hand, treasury deposits, non-term bank deposits. a 4.4 RECEIVABLES a Receivables include trade receivables, prepayment to suppliers and other receivables at the I reporting date. U The classification of receivables as trade receivables, prepayment to suppliers and other receivables is conducted under the following principle: I • Trade receivables reflect commercial receivables arising from purchase and sale transactions between VNUA and the buyer - independent of VNUA; • • Other receivables reflect non-commercial receivables that are not related to purchase and a sale transactions. a a 10 a S 5 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 a NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements a 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 4.5 TANGIBLE FIXED ASSETS a Tangible fixed assets are stated at cost less accumulated amortization (for assets serving a administrative and non-business activities) and at cost less accumulated depreciation (for assets serving production and business activities). a The cost of tangible fixed assets comprises its purchase price and any directly attributable a costs of bringing the assets to its working condition and location for its ready in use. a Tangible fixed assets are managed, used and depreciated in accordance with Circular 45/2018/TT-BTC dated 07 May 2018 of the Ministry of Finance. The depreciation rate is U determined on a straight line based on the estimated useful lives of the assets in accordance with the depreciation rate as prescribed in the above Circular. The depreciation rate of assets is U estimated as follows: S Classification Years Buildings and structures 10 - 50 S Machinery, equipment 05 - 10 Motor vehicles 10 a Trees 05-11 I Depreciation costs of fixed assets formed from the state budget and other sources are allocated according to the proportion of annual revenues (allocated by the state budget, from non- U. business activities, and revenues from production and business services). U 4.6 INTANGIBLE FIXED ASSETS a Intangible assets are computer software and land use rights. Intangible fixed assets are stated at cost less accumulated amortization. Intangible fixed assets (except for land use rights) are a managed, used and amortized in accordance with Circular 45/2018/'IT-BTC dated 07 May 2018 of the Minisiry of Finance. The amortization rate is determined on a straight line based a on the estimated useful lives of the assets, not less than 4 years and no more than 50 years, U which is consistent with the amortization rate specified in the above Circular. 5 4.7 CONSTRUCTION IN PROGRESS Construction in progress represents costs (including related borrowing costs in accordance with a the VNUA's accounting policy) directly attributable to all assets in the course of construction, U machinery and equipment under installation for production, service and management as well as those relating to repair of fixed assets in use. These assets are recorded at cost and not a amortized. 5 4.8 LIABILITIES The classification of payables as trade payables, accruals and other payables is made under the following principle: a • Trade payables reflect commercial payables arising from purchase of goods, services and assets and the seller is independent of VNUA, including payables for import of goods • through an authorized entity. 5 • Accruals reflect those payable to goods and services received from the seller or provided to the buyer but not yet paid because of not being billed or inadequately supported and U other accruals of employees relating to leave salary, other accrued operating expenses. • Other payables reflect non-commercial receivables that are not related to purchase and a sale transactions. 11 5 U • VIETNAM NATIONAL UNIVERSiTY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 • NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 4.9 ADVANCES UNRECOGNISED Unrecognized advance reflects revenues from the State Budget, deductible fee sources, amount left at the entity but not recorded to the corresponding collection accounts immediately because these receipts are allocated for the next several years although the entity has made a final settlement with the state budget the entire amount used. Residual value of fixed assets, value of raw materials, materials, tools and supplies in stock U reflected in this item are derived from state budget sources or purchased with deductible fees. U 4.10 BUSINESS CAPITAL Reflects the existing figures and the increase or decrease in business capital. 4.11 ACCUMULATED SURPLUS/DEFICIT u The item of accumulated surplus/deficit represents the sum of differences in revenues and U expenditures of the activities, also known as the entity's accumulated surplus (deficit) at the financial statement date and the settlement of surplus or deficit of administrative and non- U business activities; production, business and service activities; financial activities and other activities. 4.12 FUNDS Annually, after paying expenses, paying taxes and other payments under regulations of the I State and superior agencies, the difference in revenues greater than expenses (only revenues and expenditures of regular activities and the tasks of the State) of VNUA are appropriated for • funds according to the current guiding documents of the State. a. Appropriating funds in case the difference between annual revenues and expenditures is U greater than one time compared with the basic salary fund according to grades and positions. This difference is used according to the following priority order: + A minimum appropriation of 25% for the establishment of the Fund for the development of non-business activities. + Appropriation of Bonus and welfare funds (the maximum deduction shall not exceed U three months' salary, wages and additional average income in the year). + Appropriation of the income stabilization reserve fund (Appropriation rate is decided by • the Director of \/NUA). U + Appropriation of the Fund for scientific and technological activities (from tuition fees and lawful incomes of VNUA). U + Appropriation of the Student Support Fund from the commercial bank interest of U VNUA. b. Appropriation of the funds in case the difference between annual revenues and U expenditures is equal to or less than one time of the basic salary fund according to grades and positions. This difference is used in the following priority order: + The non-business development fund (the appropriation rate is not controlled, at least U 25% of the difference between revenue greater than the expenditure) + Bonus and welfare fund 1 + The reserve fund for income stabilization + The fund for scientific and technological activities is appropriated from tuition fees and • the lawful incomes of VNUA. The appropriation rate is subject to Decree 99/2014/ND- U ci. + Student support fund from the commercial bank interest of VNUA. U 12 U I • VIETNAM NATIONAL UNWERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 • NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanying financial statements 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 4.13 RECOGNITION OF RECEIPTS AND REVENUE Operating revenues provided by the State Budget Including revenues from the state budget and revenues from other activities left to • administrative and non-business units. Operating revenues provided by the State Budget includes: U - Recurrent revenue: Reflects the state budget allocations to the unit for the perfonnance of regular tasks or other irregular supports that are counted as a source of recurrent U expenditures and other state budget allocations in addition to the above items; • - Irregular revenues: Reflecting revenues allocated by the state budget for irregular tasks such as funding for the performance of science and technology tasks; U - Revenue from other activities: Reflect revenues from other activities arising at the units assigned by competent agencies to make estimation (or not assigned to make estimation) • and are required to prepare fmalization report according to the State Budget section amount left to the unit. Collection offees deducted, left This includes incomes from fee, tuition fees, income from associated training activities, and U other incomes. U Incomes from associated training, other incomes recognized in accordance with invoices and documents, satisf'ing the revenue recognition requirements and deductible fees, which are • used for investment and purchase of fixed assets, raw materials, materials, tools and supplies in stock (for gradual use). U Incomes from tuition fees are recognized by VNUA according to the actual amount collected. U Financial incomes Bank interest is recognized based on the banks periodic notice and the actual amount collected. • Incomes from aid, foreign loans U Includes incomes from aid and foreign loans recognized when the VNUA actually receives U these incomes. U Incomes from production, business and service activities • Sale of services is recognized when the outcome of such transaction can be measured reliably. Sale of services is determined when all following conditions are satisfied U (i) Revenue can be reliably measured; (ii) It is probable that economic benefits associated with the transaction will flow to • VNUA; (iii) Percentage of completion of services at the balance sheet date can be measured; (iv) Costs incurred in respect of rendering of services and costs incurred to completion of • rendering of services can be measured. Revenue from production and business activities of VNUA are from asset leasing, business • cooperation contracts, short-term training services, bank interest, health insurance, science and U technology consulting and transfer. U 13 U U VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 3 1/12/2022 I NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 4.14 TAXES AND AMOUNTS PAYABLE TO STATE BUDGET • Value added tax • • VNUA pays VAT according to the direct method on Revenue: • VAT payable = business VAT + VAT on other goods and services trading I VAT on other goods and services trading = Revenue from trading other goods and services x percentage of Revenue. U VNUA applies the rate of 5% for income from bank interests, asset lease services, English I exam preparation services and postgraduate entrance exam preparation. • VNUA applies the rate of 2% for income from other activities including: • + Short-term training services + Health Insurance Service I + Science and technology services + Associated cooperation service U Corporate income tax I Corporate income tax (if any) represents the total value of the current tax payable and the • deferred tax. U VNUA's current corporate income tax payable for the year is calculated using the direct method on revenue: U CIT payable = CIT on business activities + CIT from trading other goods and services. U VNUA applies the rate of 5% for income from bank interests, asset lease services, English exam preparation services and postgraduate entrance exam preparation services. \TNUA applies the rate of 2% for income from other activities including: + Short-term training services U + Health Insurance Service U + Science and technology services + Associated cooperation service U Other taxes are in accordance with the prevailing regulations in Vietnam. U U U U U 14 I U VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS • Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 • NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 4. SUMMARY OF SIGNIFICANT ACCOIJNTING POLICIES (CONT'D) 4.1 RELATED PARTY A party is considered to be related to VNUA if it has the ability to control VNUA or exercise • significant influence over VNUA in making financial and operating decisions. Related parties include: • • • Enterprises have the right to control or be directly or indirectly controlled by one or more intermediaries, or under the common control with VNUA; • • Individuals have the right to directly or indirectly vote in reported enterprises, having a significant influence on these enterprises, key management have the authority and responsibility for making plan, management and controlling activities of VNUA, • including close family members of these individuals s Enterprises owned by aforementioned individuals, having direct or indirect voting U rights or having a significant influence on the business. U When considering each related party, the nature of the relationship is paid attention to, not merely its legal form. • VNUA's related party have the ability to control or have significant influence over decision- making on financial and operating policies and the members of VNUA's Board of Directors. 5. CASH AND CASH EQUIVALENTS U 31/1212022 01/0112022 YND VND I Cash on hand 1,888,259,068 1,052,122,711 a Treasury deposits 29,795,343,476 38,480,556,442 Cash at bank 210,854,253,358 264,010,542,852 U 242,537,855,902 303,543,222,005 a U U I I I I U U • I I 15 U VIETNAM NATIONAL UNiVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanying financial statements 6. SHORT-TERM FINANCIAL INVESTMENTS 31/12/2022 01/01/2022 VND YND Vietnam Joint Stock Commercial Bank For Industry And Trade - Chuong 372,000,000,000 302,000,000,000 Duong Branch Vietnam Bank for Agriculture and Rural Development - Tay Ho Branch 109,498,085,328 104,383,303,459 Vietnam Joint Stock Commercial Bank For Industry And Trade -Branch 13,135,747,645 North of Hanoi Vietnam Joint Stock Commercial Bank For lndustiy And Trade - Dong Da 28,056,970,418 27,047,015,548 Branch Saigon-Hanoi Commercial Joint Stock Bank (SFIB) 106,426,194,683 101,352,701,725 Vietnam Joint Stock Commercial Bank For Industry And Trade - 11,947,762,081 11,518,009,398 loan Kiem Branch Sai Gon Thuong Tin Commercial Joint Stock Bank - Long Bien Branch 36,108,403,769 34,843,434,555 Vietnam Bank for Agriculture and Rural Development - Gia Lam Branch 30,000,000,000 30,000,000,000 Joint Stock Commercial Bank for Foreign Trade of Vietnam - Chuong Duong 20,000,000,080 Branch Agricultural Education Company (V - ECO) 10,000,000,000 Viet Nam Pharmaceutical Science Technology Joint Stock Company 4,170,000,000 Investment Development And Service Of Viet Nam National University Of 7,000,000,000 Agriculture Company Limited 735,207,416,359 624,280,212,330 16 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral par: of and should be read in conjunction with the accompanyingfinancial statements 7. RECEiVABLES FROM CUSTOMERS 31/12/2022 01/01/2022 VND VND Service Contract 25,281,124,265 24,937,162,039 - Associated with organizations 7,959,276,034 6,669,516,034 + Anh Mai Construction and Trade Investment Company Limited 5,266,375,000 4,021,225,000 + Hoang Ngoc Company Limited (Nguyen Minh Su) 230,000,000 389,330,000 + ASSAC Commercial Service Center 273,830,000 273,830,000 + JCT VietNam Company Limited 405,000,000 305,000,000 4 + Other subjects 1,784,071,034 1,680,131,034 - Kiot, shack, stall services 3,553,108,890 3,722,251,890 - Personal assocation 8,204,779,666 8,390,831,166 + Mr.La Son Hai 199,970,000 748,064,833 + Mr. Le Van Trinh 770,666,667 1,110,666,667 + Ms. Vuong Thi Minh Hai/Luu Thi To Hang 3,082,496,667 2,074,996,667 + Ms Nguyen ThuyHa 869,000,000 689,000,000 + Other subjects 3,282, 646,332 3,768,102,999 - Other services 5,563,959,675 6,154,562,949 + Lam Thao Fertilizers And Chemicals .JSC 1,173,145,000 1,173,145,000 + Department ofEconomy and Infrastructure of Viet Yen district - Bac 500,000,000 500,000,000 Giang + Department ofAgriculture and Rural Development of Quang Tn 591,000,000 591,000,000 province + Other subjects 3,299,814,675 3,890,417,949 25,281,124,265 24,937,162,039 8. ADVANCES TO SUPPLIERS 31/12/2022 01/01/2022 YND VID Ha Phuong Equipment Co., LTD 6,502,958,009 6,502,958,009 Duyen Ha CO.,LTD 4,037,015,000 Science Technology Trade Service Co., LTD 6,577,281,000 6,577,281,000 The Long Airtech.,JSC 3,196,778,500 6,746,778,500 Other advances to suppliers 4,405,009,869 8,460,387,657 20,682,027,378 32,324,420,166 17 VIETNAM NATIONAL UNWERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 9. OTHER RECEiVABLES 31/12/2022 01/01/2022 YND YND Advances to employees 25,623,122,314 24,738,551,684 Other receivables 30,803,203,626 39,675,483,874 - AgriculiuralEducation Company (V-ECU) 4,049,805,000 14,049,805,000 - Mr. Nguyen Viet Long 1,100,000,000 1,100,000,000 - Mr. Tran Nguyen Ha 1,500,000,000 1,500,000,000 - University ofAgriculture 1 11,340,891,703 6,179,479,603 - Mr. Le Vu Quan 993,187,532 993,187,532 - Mr Vu Ngoc Huyen 1,350,000,000 831,000,000 - Other receivables 10,469,319,391 15,022,011,739 56,426,325,940 64,414,035,558 18 VIETNAM NATIONAL UNiVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 10. TANGIBLE FIXED ASSETS Buildings, Machinery Motor Other tangible Total structures equipment vehicles fixed assets VND VNI) VND VND YND COST 01/01/2022 843,001,236,516 291,414,530,730 5,191,275,786 14,283,595,132 1,153,890,638,164 - Rec1assif' - (74,094,000) (1,673,784,500) (1,747,878,500) - Acquisitions 5,776,728,000 521,337,500 6,298,065,500 - Finished construction 59,815,181,646 48,002,250,216 107,817,431,862 31/12/2022 902,816,418,162 345,119,414,946 5,191,275,786 13,131,148,132 1,266,258,257,026 ACCUMULATED DEPRECIATION 01/01/2022 339,589,719,351 231,241,412,811 4,149,313,202 7,446,930,379 582,427,375,743 - Reclassif,i (15,922,875) (138,162,500) (154,085,375) - Depreciation during the year 42,040,745,924 35,047,747,077 176,537,350 2,032,146,267 79,297,176,618 31/12/2022 381,630,465,275 266,273,237,013 4,325,850,552 9,340,914,146 661,570,466,986 NET BOOK VALUE 01/01/2022 503,411,517,165 60,173,117,919 1,041,962,584 6,836,664,753 571,463,262,421 31/12/2022 521,185,952,887 78,846,177,933 865,425,234 3,790,233,987 604,687,790,040 The cost of tangible fixed assets fully depreciated but still in use as at 31/12/2022 is VND 312,682,300,706. 19 VIETNAM NATIONAL UNiVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 11. INTANGIBLE FIXED ASSETS Land use Computer Total rights software VND VND VND COST 01/01/2022 4,124,912,209,800 21,365,222,120 4,146,277,431,920 31/12/2022 4,124,912,209,800 21,365,222,120 4,146,277,431,920 AMORTIZATION 01/01/2022 - 21,087,833,947 21,087,833,947 •1 I - Depreciation during the year - 277,388,174 277,388,174 31/12/2022 - 21,365,222,121 21,365,222,121 NET BOOK VALUE 0 01/01/2022 4,124,912,209,800 277,388,173 4,125,189,597,973 31/12/2022 4,124,912,209,800 - 4,124,912,209,799 12. CONSTRUCTION IN PROGRESS 31/12/2022 01/01/2022 VND YND Investment in construction in progress 1,143,574,985,786 749,362,441,223 + SupportforAutonomous Higher Education Projecifor Vietnam 1,051,308,671,526 561,697,395,378 + Other projects 92,266,314,260 187,665,045,845 Major repair of fixed assets 26,186,526,554 30,022,673,196 1,169,761,512,340 779,385,114,419 13. PAYABLE TO SUPPLIERS 31/12/2022 01/01/2022 VND YND - Thang Long TL Jntech., JSC 59,220,000,000 - Viet Nam AIC., JSC 31,900,000,000 38,000,000,000 - Trang An Educational Equipment & Toys Company Limite 19,700,000,000 - - Cong ty CP Dâu tu Xây di,rng DO thj Vit Nam 12,400,000,000 12,100,000,000 - Cong ty TN}IH Vt tu Khoa hçc K thut Thai Binh 10,400,000,000 - - Nhan Binh., JSC 8,910,000,000 2,000,000,000 - SUHACO ., JSC 7,700,000,000 12,400,000,000 - Ngoc Minh Construction and Trading JSC 21,211,856,365 13,895,914,438 - Ha Phuong Equipment Co., LTD 6,501,099,977 30,683,099,977 - Tay Bac A Tech .,JSC 15,084,613,625 - SISC Viet Nam Instrumentation JSC 34,244,892,952 - FODACON Construction Investment JSC 2,356,319,708 12,974,319,708 - Payable to other subjects 23,984,848,767 52,014,052,048 204,284,124,817 223,396,892,748 20 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 3 1/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunct ion with the accompanying financial statements 14. UNIECOGNISED ADVANCES 31/12/2022 01/01/2022 VND VND State budget allocation 4,491,797,696,842 4,493,247,457,686 - Residual value offixed assets 4,491,797,696,842 4,493,247,457,686 Funding for investment, construction 837,696,349,736 522,701,440,816 5,329,494,046,578 5,015,948,898,502 15. OTHER PAYABLES 31/12/2022 01/01/2022 YND VND Salary deductions 2,045,206,263 1,907,935,795 - Social insurance 1,482,252,523 1,371,857,132 - Health Insurance 316,633,856 296,695,233 - Unemployment insurance 246,319,884 239,383,430 Payables to the State 1,861,651,452 1,496,290,651 - VATpayable 373,274,204 392,019,256 - Corporate income tax 1,488,377,248 1,104,271,395 Employee payables 280,088,525 472,280,504 On behalf receipts and payments 46,977,011,636 40,873,898,039 Deposit, mortgage 30,582,250,545 23,105,668,497 Other payables 1,370,510 8,595,201 81,747,578,931 67,864,668,687 16. FUNDS 31/12/2022 01/01/2022 VND VND Bonus fund 3,993,822,872 5,978,901,872 Welfare Fund 31,008,848,891 30,790,927,891 Scholarships fund 44,775,245,530 47,279,400,273 Non-business activities development fund 1,037,059,961,177 971,852,586,673 1,126,837,878,470 1,055,901,816,709 21 VIETNAM NATIONAL UNiVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 17. MOVEMENT IN CAPITAL Items Accumulated Funds Total deficit/surplus VND VND VND 01/01/2021 108,213,280,488 822,471,631,520 930,684,912,008 - Surplus for the year 153,432,017,763 - 153,432,017,763 - Other increase 419,089,500 419,089,500 - Profit distribution (261,645,298,251) 261,645,298,251 + Non-business activities (213,701,263,325) 213,701,263,325 developmentfund + Bonus and welfare fund (47,944,034,926) 47,944,034,926 - Fees for projects and benefits (28,634,202,562) (28,634,202,562) 31/12/2021 1,055,901,816,709 1,055,901,816,709 01/01/2022 1,055,901,816,709 1,055,901,816,709 - Surplus for the year 150,761,403,759 150,761,403,759 - Other increase 29,952,463,169 40,174,465,389 70,126,928,558 - Profit distribution (*) (180,713,866,928) 180,713,866,928 + Non-business activities (105,713,866,928) 105,713,866,928 development fund + Bonus and welfare find (25,000,000,000) 25,000,000,000 + Income supplement fund (40,000,000,000) 40,000,000,000 + Income stabilization fund (10,000,000,000) 10,000,000,000 Fees for projects and benefits (149,952,270,556) (149,952,270,556) 31/12/2022 1,126,837,878,470 1,126,837,878,470 (*): Setting up the fund of Vietnam Academy of Agriculture from the Accumulated surplus in 2020 according to Decision No. 1423/QD-HVN dated 15 March 2023 of the Academy Director and Resolution No. 20/NQ-HDHV dated January 17, 2023 of the Academy Council. 18. ADMINISTRATIVE AND NON-BUSINESS ACTIVITIES Year 2022 Year 2021 VND VND Revenue 98,869,422,910 92,653,480,351 Operating revenue provided by the budget 92,840,531,942 86,742,623,088 - Regular 56,884,928,704 50,983,287,748 - Irregular 35,955,603,238 35,759,335,340 Income from foreign aid, loans 6,028,890,968 5,910,857,263 Expenses 41,984,494,206 41,670,192,603 Expense for regular activities Expense for irregular activities 35,955,603,238 35,759,335,340 - Cost of salaries, wages and other expenses for 2,503,347,600 2,482,972,000 employees - Costs for materials, tools and services used 428,547,600 533,068,825 - Fixed assets depreciation cost 5,703,738,944 3,953,369,986 - Other operating cost 27,319,969,094 28,789,924,529 Expenses from foreign aid, foreign loans 6,028,890,968 5,910,857,263 Surplus 56,884,928,704 50,983,287,748 22 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FINANCIAL STATEMENTS Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) These notes are an integral part of and should be read in conjunction with the accompanyingfinancial statements 19. PRODUCTION AND SERVICE BUSINESS ACTIVITIES Year2022 Year 2021 VND VND Revenue 393,904,978,538 410,154,784,963 - Revenue from processing services - 9,072,381,838 - Revenue from training services 357,287,475,868 377,660,944,516 - Revenue from other services 36,617,502,670 23,421,458,609 Cost 324,695,611,242 334,488,591,298 - Cost of goods sold 324,695,611,242 334,488,591,298 Surplus 69,209,367,296 75,666,193,665 20. FINANCIAL ACTiVITIES Year2022 Year 2021 VND VND Financial revenue 31,129,868,980 30,289,647,980 Financial cost 3,983,063,633 1,852,471,437 Surplus 27,146,805,347 28,437,176,543 21. OTHER ACTIVITIES Year 2022 Year 2021 VND VND Other income 9,282.000 40,765,400 Other costs - 1,611,000 Surplus 9,282,000 39,154,400 22. OTHER INFORMATION 22.1 Events after the balance sheet date The Board of Directors confirms that, in the opinion of the Board of Directors, in all material respects, there are no unusual events occurring after the balance sheet date as of 31 December 2022 affecting the financial position of VNUA as at 31/12/2022, as well as operating results and cash flow for the year ended 31/12/2022. 22.2 Information on related party Year 2022 Year 2021 YND YND Income of the Board of Directors 3,983,265,725 3,569,624,399 Salary and bonus 3,983,265,725 3,569,624,399 Balance wit/i related parties Relationship 31/12/2022 01/01/2022 VND VND Phãi thu khác Agricultural Education Company (V -ECO) Sub-units 4,049,805,000 14,049,805,000 23 U VIETNAM NATIONAL UNiVERSITY OF AGRICULTUIE FINANCIAL STATEMENTS • Trau Quy town, Gia Lam district, Hanoi For the year ended 31/12/2022 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) I These notes are an integral part of and should be read in conjunction with the accompanying financial statements U 22. OTHER INFORMATION (CONT'D) U 22.3 Comparative figure U The comparative figures are from the audited financial statements of VNUA for the year U ended 31 December 2021. a Hanoi, 28 June 2023 I Prepared by Chief Accountant a I N a bang Bach Duong Tran Quang Trung Nguyen hi Lan a I a U a a U S a a a I a U a a U a I I 24 I