On December 19, information from Nghe An Provincial Inspectorate said that it had just announced the conclusion of the inspection of the management of state capital and assets; taxes and amounts payable to the state budget at Nghe An Coffee - Rubber One Member Co., Ltd. (headquartered in Hoa Hieu ward, Thai Hoa town, Nghe An).
Nghe An Coffee - Rubber Company Limited is a state-owned enterprise, owned by Nghe An Provincial People's Committee, assigned to manage and use 3,521.03 hectares of land of all kinds.
Through inspection, in 2022, the Company had a profit of VND 25,156,093; in 2023, it lost VND 2,128,288,203. However, the Company's main business activities (purchasing and processing rubber latex) were loss-making for 2 years, only making profit from other business activities (mainly from collecting the percentage of agricultural land allocated to contracted households).
The company is using an old rubber processing factory with outdated technology, low quality of processed products, and not highly competitive in the market. The fixed assets of the perennial garden are the assets that directly produce the main products, and are currently owned by the individual contractor.
The new factory project is in the investment process and has not been completed and put into use (the Company is currently having difficulty mobilizing investment capital). The Company is having difficulty in purchasing, improving output and product quality.
As of December 31, 2023, the land rent debt is VND 15,762,179,000; The Company has encountered many difficulties in collecting land rent from households and individuals receiving contracts.
Total long-term assets as of December 31, 2023 are VND 11,752,511,716; while liabilities as of December 31, 2023 are VND 34,807,757,506; The company has low solvency, difficulty in being proactive in finance.
In 2022 and 2023, the Company has not declared value added tax for services of checking the current status, measuring, extracting maps, printing documents... for households receiving contracts to transfer contracted land area, with a total amount of VND 101,203,726.
Nghe An Provincial Inspectorate has issued decisions to recover a total amount of VND 289,293,000 into a temporary account pending processing. To date, the Company has fully paid the above amount.
Nghe An Provincial Inspectorate also requested the Company to organize a review to learn from experience; promote advantages and take measures to overcome shortcomings and deficiencies according to the inspection conclusion.
Propose that the People's Committee of Nghe An province take the lead in coordinating with relevant departments and branches to consider solutions to restructure and reorganize the production and business activities of Nghe An Coffee - Rubber One Member Co., Ltd. towards efficiency and development.
