aa5c PROJECT MANAGEMENT UNIT NO. 3 VIETNAM ROAD ASSET MANAGEMENT PROJECT Credit Number 5331 - VN, and Grant Number TF 015733 AUDITED FINANCIAL STATEMENTS Fiscal year ended 31 December 2019 A member of International AASC AUDITING FIRM I Vietnam Road Asset Management Project Credit Number 5331 - VN and Grant Number TF 015733 I I I I CONTENTS Page PART I INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS I Report of the Project Management Unit 3 Independent Auditors' Report on the Financial statements 4-5 Audited Financial statements 10 Statement of Funds and Expenditures 6 Statement of Funds balance 7 Statement of Designated accounts 8 Statement of Withdrawals and Reconciliation of Funds 9 Notes to the Financial statements 10-14 PART II INDEPENDENT AUDITORS' REPORT ON 15-16 THE INTERNAL CONTROL SYSTEM PART III INDEPENDENT AUDITORS' REPORT ON 17-18 THE COMPLIANCE PART IV MANAGEMENT LETTER 19 I I I I I * 2 I 1 Vietnam Road Asset Management Project Credit Number 5331 - VN and Grant Number TF 015733 REPORT OF THE PROJECT MANAGEMENT UNIT The Project Management Unit No.3 ("Project Management Unit" or "PMU3") presents this report and the Financial Statements of the Vietnam Road Asset Management Project ("the Project") for the fiscal year ended 31 December 2019. The Project The Project is implemented under the Credit Number 5331 - VN and the Grant Number TF 015733 dated 14 January 2014 ("the Agreements") between the Government of the Socialist Republic of Vietnam and the World Bank. The Project Management Unit Members of the Project Management Unit in the year and to the reporting date are: Mr. Nguyen Xuan Truong Director Mr. Nguyen Tien Dat Chief Accountant Auditors The auditors of AASC Limited have taken the audit of the financial statements of the Project. Responsibilities of the Project Management Unit I The Project Management Unit is responsible for preparing the project financial statements, including Statement of Funds and Expenditures, Statement of Funds balance, Statement of Designated Accounts and Statement of Withdrawals and Reconciliation of Funds, which comply with the accounting policies described in the attached Notes to the Financial Statements. The Project Management Unit assures that the accounting policies are appropriately selected and consistently applied. The Project Management Unit assures that the accounting records were fully maintained to prepare the financial statements in accordance with the applied accounting policies and to disclose, with reasonable accuracy at any time, the financial position of the Project. The Project Management Unit is also responsible for maintaining an effective internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and comply with relevant laws, regulations and other provisions of the funding agreement that could have a direct and material financial effect on the Project financial statements. On behalf of the Project Management Unit,,,/ Nguyen Xuan Truong Director Hanoi, 30 May 2020 I I * 3 I 1 I aasc No.: 300520.007/BCTC.FIS2 INDEPENDENT AUDITORS' REPORTS ON THE FINANCIAL STATEMENTS To: The Project Management Unit No. 3 Opinion Vietnam Road Asset Management Project We have audited the accompanying financial statements of Vietnam Road Asset Management Project ("the Project") which comprise Statement of Funds balance as at 31/12/2019, Statement of Funds and Expenditures, Statement of Designated Accounts, Statement of Withdrawals and Reconciliation of Funds, and Notes to the Financial Statements for the fiscal year then ended, including a summary of significant accounting policies. In our opinion: The accompanying financial statements give a true and fair view of the financial position of the Project, including the balance of the Designated Account as at 31 December 2019, funds received and expenditures incurred, movements of the Designated Account for the year then ended in accordance with the basis of the principal accounting policies described in the Notes to the Financial Statements and the provisions of the Credit Number 5331 - VN and Grant Number TF 015733;1 In addition, with respect to Statements of Expenditure, adequate supporting documents have been fully maintained to support to the replenishment requests submitted to the World Bank. The expenditures are eligible and in right purposes of the Credit Number 5331 - VN and Grant I Number TF 015733. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Project Management Unit in accordance with the international Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management for the Financial Statements The Project Management Unit is responsible for the preparation of the financial statements in accordance with the principal accounting policies described in Notes to the Financial Statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to cease operations, or has no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements HANG KIdM TOAN AAsc 4 I I As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; Obtain an understanding of internal control relevant to the audit 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 Project's internal control; Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Project to cease to continue as a going concern; I Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Project Management No. 3 regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. AASC Limited Do Manh Cuong Doan Thi Thuy Deputy General Director Auditor in-charge CPA Registered No.: 0744-2018-002-1 CPA Registered No.: 0937-2018-002-1 Hanoi, 30 May 2020 I I I I I 5 I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 STATEMENT OF FUNDS AND EXPENDITURES For the fiscal year ended 31 December 2019 Accumulated Year ended Accumulated Note to 31/12/2018 31/12/2019 to 31/12/2019 VND VND VND I. Funds 1 Funds received from the World Bank 5 3,377,675,628,155 221,915,794,435 3,599,591,422,590 2 Counterpart funds of the Vietnamese Government 77,610,870,706 6,567,547,270 84,178,417,976 3 Exchange rate differences 59,266,830,109 5,068,548,596 64,335,378,705 3,514,553,328,970 233,551,890,301 3,748,106,219,271 II. Expenditures 1 Civil Works 3,195,741,146,877 251,184,190,076 3,446,925,336,953 2 Land acquisition 15,500,207,167 1,951,192,526 17,451,399,693 3 Equipment 6,274,361,600 7,769,289,360 14,043,650,960 4 Consultant 211,252,210,438 51,185,050,167 262,437,260,605 5 Incremental operating costs 37,546,556,076 3,642,376,669 41,188,932,745 6 Others 11,871,728,909 757,991,161 12,629,720,070 6 3,478,186,211,067 316,490,089,959 3,794,676,301,026 III. Surplus/(Deficit) 36,367,117,903 (82,938,199,658) (46,571,081,755) 6 I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 STATEMENT OF FUNDS BALANCE As at 31 December 2019 31/12/2019 31/12/2018 VND VND Surplus/(Deficit) I Surplus as at begining 36,367,117,903 113,760,054,899 (Deficit) in the year (82,938,199,658) (77,392,936,996) (Deficit)/Surplus as at closing (46,571,081,755) 36,367,117,903 Represented by: Current assets 58,492,040,080 219,893,979,274 Cash at bank, treasury 3 37,739,821,290 212,853,523,784 Advances to contractors 4 20,752,218,790 7,040,455,490 Current liabilities 105,063,121,835 183,526,861,371 I Payables to contractors 7 105,061,038,579 183,524,807,806 Other payables 2,083,256 2,053,565 I Net worth (46,571,081,755) 36,367,117,903 I I I I I I I I I I I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 STATEMENT OF DESIGNATED ACCOUNT For the period: from 01/01/2019 to 31/12/2019 Account holder Project Management Unit No. 3 Account No: 99999908 8888 Bank: Lien Viet Post Bank - Ha Dong Transaction Office Address No. 10 Tran Phu street, Mo Lao Ward, Ha Dong District, Hanoi City Agreement No.: 5331 - VN PART A: ACTIVITIES Note USD Opening balance 8,755,198.54 Add: Amounts deposited by the World Bank 9,668,282.69 Deduct: Amounts withdrawn (17,225,565.53) 3 Closing balance 1,197,915.70 PART B: RECONCILIATION 1. Amount advanced by the World Bank 15,000,000.00 2. Add: Amount supplemented by the World Bank 3. Present outstanding amount advanced to 15,000,000.00 4. Closing balance 1,197,915.70 5. Add: Amounts withdrawn and not yet claimed (1) 13,802,084.30 6. Total advances accounted for 15,000,000.00 (1) Including: USD I Civil Works 11,440,639.73 Consultant 2,025,402.64 Equipment 336,041.93 13,802,084.30 I I I I I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 STATEMENT OF WITHDRAWALS AND RECONCILIATION OF FUNDS Credit Number 5331 - VN For the year ended 31 December 2019 Withdrawal applications Amount claimed Amount received No. Date Currency Civil Works Consultant Total Date Amount Variances Note (a) (b) (b-a) Designated account L27 22/01/2019 USD 1,075,545.49 - 1,075,545.49 20/02/2019 1,075,540.49 (5.00) (1) L28 28/02/2019 USD 7,804,260.47 788,476.73 8,592,737.20 19/03/2019 8,592,732.20 (5.00) (1) Total amounts 8,879,805.96 788,476.73 9,668,282.69 9,668,272.69 (10.00) (1) The difference is the withdrawal fee and was refunded by Intermediary Bank on 21/08/2019. 9 I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2019 1. Background The Vietnam Road Asset Management Project is implemented under the Credit Number 5331 - VN and the Grant Number TF 015733 dated 14 January 2014 (the "Agreements") between the Government of the Socialist Republic of Vietnam and the World Bank. The main objectives of the Project are to improve the efficiency and sustainability of the road asset management and maintenance practices performed by the Ministry of Transport on national road in Vietnam. The Project includes components as follows: Road Asset Management System Development; Road Asset Preservation; Road Asset Improvement; Institutional Strengthening. The Project officially came into operation since 14 January 2014 and is expected to close on 31 December 2020. The finance agreement No. TF 015733 signed on 14/01/2014 has expired on 30/06/2016 and the grace period for disbursement to 30/10/2016. The Project is managed by Project Management Unit No. 3, and its office is located at No. 23 Group, Linh Nam Ward, Hoang Mai District, Ha Noi City. 2. Principal Accounting Policies a. Basis of preparation of the Financial Statements The annual accounting period commences from 1st January and ends at 31st December. The financial statements are prepared in accordance with the requirements of the World Bank and presented in Vietnam Dong (VND), except for the Statement of Designated Accounts and Statement of Withdrawals and Reconciliation of Funds, which are prepared in United State Dollar (USD). The principal accounting policies are summarized as below: b. Foreign currencies Funds received from the World Bank in foreign currencies are translated into VND using exchange rates announced by the Ministry of Finance receipt dates or dates of direct payment made to contractors/suppliers. Monetary assets and liabilities denominated in foreign currencies are revalued at the inter-bank exchange rate at the reporting dates. All exchange differences from these transactions are recorded as "Exchange rate differences" account and presented as "Exchange rate differences" on the Statement of Funds and Expenditures. c. Funds and Expenditures Funds: Funds received from the World Bank are recorded when remittance made into Designated Accounts or direct payment made to contractors/suppliers; Counterpart funds of the Vietnamese Government are recorded when payments are made directly from the Vietnamese Government to contractors/suppliers of the Project or funds are remitted to PMU3 for settlement of the Project's activities. 10 I I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 Expenditures: Incremental operating cost is recorded in the connection with the counterpart fund received for this category; I Other expenditures are recorded when they are actually incurred. 3 d. Designated accounts and their interests Designated Accounts are the deposit accounts in USD opened at LienViet Post Bank - Ha Dong Transaction Office for the Project's activities. Payments made via Designated Accounts are for eligible expenditures of the Project in accordance with the provisions of the Credit Number 5331 - VN and the Grant Number TF 015733 dated 14 January 2014. Interests of the Designated Accounts are considered as receipts of the State Budget and initially recorded as Other payables in Statement of Funds balance and used to cover bank charges. At the end of the Project, outstanding interests will be returned to the Vietnamese Government. In case bank charges are not fully covered by the interests, it will be settled by the Counterpart funds (according to Circular No. 111/2016/TT-BTC dated 30 June 2016). 3. Cash at bank, treasury 31/12/2019 31/12/2018 VND VND Designated account (IDA 5331 - VN) 27,737,738,034 199,837,406,675 Interest account of Designated account (IDA 5331-VN) 20,840 20,542 Interest account of Designated account (TF 015733) 2,062,416 2,033,023 A Current account (VND) 10,000,000,000 13,014,063,544 I 37,739,821,290 212,853,523,784 * 4. Advances to contractors 31/12/2019 31/12/2018 VND VND Civil Works - 1,023,833,960 Thang Long Construction Group JSC - 1,023,833,960 Consultant 20,752,218,790 6,016,621,530 Katahira & Engineers International 1,579,058,070 4,737,174,210 SMEC International Pty Ltd 606,147,320 606,147,320 ATC Firm Co., Ltd 573,600,000 573,600,000 Transport Development and Strategy Institute - 99,700,000 Road Technical Centre 6,045,068,200 - Road Technical Centre No 1 4,277,034,200 - Road Technical Centre No 2 3,666,122,000 - Road Technical Centre No 3 4,005,189,000 - 20,752,218,790 7,040,455,490 I I 11 I MMMM -mmm-mmmWWWm-mWW Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 5. Funds received from the World Bank Year ended 31/12/2019 Accumulated to 31/12/2019 Original currency Converted to VND Original currency Converted to VND Credit Number 5331 - VN 221,915,794,435 3,576,919,088,615 Designated account 9,668,282.69 221,915,794,435 161,323,961.03 3,576,919,088,615 - Advance (USD) - 15,000,000.00 326,850, 500, 000 - Replenishment (USD) 9,668,282.69 221,915,794,435 146,323,961.03 3,250,068,588,615 Grant Number TF 015733 22,672,333,975 Designated account - - 488,207.23 10,610,085,380 - Advance (USD) - - 250, 000. 00 5,418,250,000 - Replenishment (USD) - - 238,207.23 5,191,835,380 Direct payments (USD) - - 462,010.00 10,148,657,340 Direct payments (VND) - - 1,913,591,255 1,913,591,255 221,915,794,435 3,599,591,422,590 6. Expenditures Year ended 31/12/2019 Accumulated to 31/12/2019 The World Bank Counterpart fund Total The World Bank Counterpart fund Total VND VND VND VND VND VND Civil Works 251,184,190,076 - 251,184,190,076 3,446,925,336,953 - 3,446,925,336,953 Land acquisition - 1,951,192,526 1,951,192,526 - 17,451,399,693 17,451,399,693 Equipment 7,769,289,360 - 7,769,289,360 14,043,650,960 - 14,043,650,960 Consultant 50,586,330,567 598,719,600 51,185,050,167 259,973,307,091 2,463,953,514 262,437,260,605 Incremental operating - 3,642,376,669 3,642,376,669 - 41,188,932,745 41,188,932,745 costs Others - 757,991,161 757,991,161 - 12,629,720,070 12,629,720,070 309,539,810,003 6,950,279,956 316,490,089,959 3,720,942,295,004 73,734,006,022 3,794,676,301,026 100% expenditures for Civil Works, Equipment and Consultant (including tax) financed by the Credit Number 5331-VN and the Grant Number TF 015733. 12 I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 7. Payables to contractors 1 31/12/2019 31/12/2018 VND VND Civil Works 104,432,484,464 181,023,998,902 Hoa Hiep Co., Ltd. 4,740,199,550 34,124,270,287 Investment and Construction Project 656 Co., Ltd. 6,280,805,240 14,841,064,015 Ngoc Minh - UDIC JSC 1,437,616,410 13,601,929,722 Quyet Tien Construction Investment Corporation 6,436,740,292 11,790,673,033 Thang Long Construction Group JSC 16,664,037,890 8,251,487,693 Dong Do Group JSC 14,252,774,324 8,047,830,364 468 Construction JSC 556,479,860 7,756,412,302 68 Trading construction and service JSC 1,840,830,600 7,640,881,726 HJC Group JSC 4,898,289,818 6,338,346,595 Phuong Thanh Tranconsin JSC - 5,707,978,663 Xuan Quang Construction JSC 2,127,697,523 5,001,258,564 Transport Engineering Consultant JSC No.236 14,827,457,125 4,883,895,036 Hoa Binh Construction and Infrastructure 2,901,617,717 4,831,525,892 Development Invest JSC Thi Son Construction and Production Co., Ltd 1,811,742,146 4,664,255,330 Phuong Bac Construction Investment JSC 4,564,918,290 4,313,079,949 Urban infrastructure development investment 1,590,305,627 4,069,913,689 3 Corporation Civil Engineering Construction Corporation No.1 JSC 4,665,245,350 3,655,571,959 Phu Thinh Construction and Trading JSC 1,224,368,049 3,532,820,826 Hiep Phu Co., Ltd. 1,902,378,113 3,040,009,961 Transport Construction and Investment Trading JSC 3,444,045,426 2,776,508,197 No.1 Vinadelta JSC 773,969,924 2,557,465,834 Thai Binh Road Management JSC 1,442,042,974 2,550,142,750 Hoan Hao Co., Ltd. 1,913,956,510 2,488,143,463 Others 4,134,965,706 14,558,533,052 Land acquisition - 1,760,026,593 319 Bom, Mins, UXO One member Co., Ltd - 738,050,943 36 Corporation - 406,902,850 Truong Son Construction Corporation - 401,247,800 Tan Phat JSC - 213,825,000 Consultant 628,554,115 129,188,046 Road and Bridge Engineering Consultants JSC 81,286,246 81,286,246 Institute of Bridges and Tunnels Engineering 47,901,800 47,901,800 Development Research and Consultancy centre 499,366,069 - I Others - 611,594,265 PVI Thang Long Insurance Co., Ltd. - 611,594,265 1 105,061,038,579 183,524,807,806 13 I Vietnam Road Asset Management Project Financial Statements Credit Number 5331 - VN and Grant Number TF 015733 Year ended 31 December 2019 8. Subsequent events There have been no significant events occurring after the reporting date, which would require adjustments or disclosures to be made in the financial statements. 9. Corresponding figures The corresponding figures are the financial statements for the year ended 31 December 2018 which were audited by AASC Limited. 10. Approval of the Financial Statements The financial statements were approved by Project Management Unit for issuance on 30 May 2020. Nguyen Xuan Truong Nguyen Tien Dat Director Chief Accountant Hanoi 30 May 2020 I I I I I I I I * 14 I I aasc I No.: 300520.007/BCTC.FIS2 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL SYSTEM To: Project Management Unit No. 3 Vietnam Road Asset Management Project We have audited, in accordance with International Standards on Auditing, the financial statements of the Vietnam Road Asset Management Project ("the Project") for the year ended 31 December 2019 and issued the auditors report thereon dated 30 May 2020 expressing an opinion on those financial statements. In connection with our audit of the financial statements, we also examined the effectiveness of internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as the internal control over financial reporting for the year ended 31 December 2019. Responsibilities of the Project Management Unit The Project Management Unit is responsible for maintaining an effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as the internal control over financial reporting. Auditor's Responsibility Our responsibility is to express an opinion on the effectiveness of internal control based on our examination. Our examination was conducted in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised). That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project has maintained an effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as internal control over financial reporting. Our examination included obtaining an understanding, testing, and evaluating the design and operating effectiveness of the internal control, and performing other procedures as we considered necessary in the circumstances to obtain sufficient appropriate evidence to provide a basis for our opinion. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not to be prevented or detected on a regular basis. In addition, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. I Amm bro Itr anal HANG KIM TOAN AASC 15 I I I Auditors' opinion In our opinion, the Project has maintained an effective internal control over misstatements that could have a direct and material financial effect on the Project financial statements for the year ended 31 December 2019. AASC Limited Do Ma ng Doan Thi Thuy Deputy General Director Auditor in-charge CPA Registered No.: 0744-2018-002-1 CPA Registered No.: 0937-2018-002-1 Hanoi, 30 May 2020 I I I I I I I I I I 1 16 I I aasc No.. 300520.007/BCTC.FIS2 INDEPENDENT AUDITORS' REPORT ON THE COMPLIANCE To: Project Management Unit No. 3 ag Vietnam Road Asset Management Project We have audited, in accordance with the International Standards on Auditing, the financial statements of the Vietnam Road Asset Management Project ("the Project") for the year ended 31 December 2019 and issued the auditors report thereon dated on 30 May 2020 expressing an opinion on those financial statements. In connection with the audit of the financial statements, we also performed procedures on the Project's compliance with the Credit Number 5331 - VN and the Grant Number TF 015733 dated 14 January 2014, law and regulations that have a direct and material effect on the Project's financial statements for the year ended 31 December 2019 ("the Requirements"). I Responsibilities of the Project Management Unit The Project Management Unit is responsible for complying with the Requirements applicable to I the Project. Auditor's Responsibility Our responsibility is to express an opinion on the Project's compliance with the Requirements based on our procedures. We limited our tests of compliance to the Requirements, and we did not test compliance with all laws and regulations applicable to the Project. We performed our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised). That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project has complied with the Requirements. An assurance engagement to report on the compliance with the Requirements at the Project involves performing procedures to obtain evidence about whether the Project's activities are free of material non-compliance with the Requirements, including obtaining an understanding of the internal control relevant to the Project's compliance with the Requirements. The procedures selected depend on the auditors' judgment, including the assessment of risks that the Project does not comply with the Requirements and whether such non-compliance could have a direct and material financial effect on the Project's financial statements. Our procedures included testing the compliance with the Requirements we consider necessary to provide a reasonable assurance that the Requirements are complied by the Project. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis I for our opinion. I I I 3 ~~~A mem,ibe.r of' In~2 terninl HANG KIEM TOAN AASC 1 I I Auditors' opinion In our opinion, the Project has complied with the Requirements that could have a direct and material financial effect on the Project's financial statements for the fiscal year ended 31 December 2019. AASC Limited Do Manh Ciueng Doan Thi Thuy Deputy General Director Auditor in-charge CPA Registered No.: 0744-2018-002-1 CPA Registered No.: 0937-2018-002-1 Hanoi, 30 May 2020 I I I I I I I I I * 18 I