02. Illustrative Management Reporting Package

© 2013 Grant Thornton (Vietnam) Ltd. All rights rese rved.

Illustrative Management Reporting Package

Sample Company

© 2013 Grant Thornton (Vietnam) Ltd. All rights rese rved. 2


Scope of work and objectivesPreliminary validation



Preliminary validationParticulars Debit Credit

Assets 121,665,268.87 (119,736,604.60) I. CURRENT ASSETS 118,416,075.06 (116,893,721.76)

1. Cash 56,390,195.77 (56,439,192.77) 0 33.82 (33.82) Cash in bank 44,138,685.29 (44,267,241.45) Cash on hand 12,251,476.67 (12,171,917.50)

3. Inventories 36,672,733.74 (36,247,927.86) Finished-good 18,021,844.17 (17,784,612.52) Merchandises 81,675.34 (81,675.34) Raw materials 5,669.55 (5,669.55) Tools and instruments 15,937.62 (3,854.75) Work in progress 18,547,607.06 (18,372,115.70)

2.Receivables 24,108,088.42 (22,966,658.67) Advances (15,832.64) Deducted VAT 600,966.55 (515,202.74) Inter-company receivables (8,431.73) Other receivables 447,279.71 (427,590.52) Prepaid expenses 3,045.23 (2,030.26) Provision for bad-debts 1,240.16 (56,107.81) Trade account receivables 23,055,556.77 (21,941,462.97)

4. Other current assets 1,245,057.12 (1,239,942.46) Advances 1,060,945.01 (1,052,088.46) Prepaid expenses 4,155.20 (11,720.15) Short-term Deposits, Mortgages and Collateral 179,956.91 (176,133.85)

II. FIXED ASSETS & LONG-TERM INVESTMENT 3,249,193.82 (2,842,882.85) Fixed Assets & Long-Term Investment 3,249,193.82 (2,842,882.85)

Accumulated depreciation 120,852.93 (1,726,964.49) Construction in progress 515,147.16 (518,147.73) Leasing fixed-assets 320,418.10 (124,510.69) Long-term deposits, mortgages and collateral 5,547.05 (45,547.02) Long-term prepaid expenses 325,585.65 (307,268.70) Tangibles fixed-assets 1,961,642.92 (120,444.21)

This summary is part of the

preliminary validation of the

journal entries that were

mapped to the updated Chart

of Accounts.



Particulars Debit Credit Grand TotalLiabilities 27,216,756.66 (27,859,660.87) (642,904.22)

III. LIABILITIES 27,216,756.66 (27,859,660.87) (642,904.22) Current Liabilities 25,672,924.61 (26,673,998.98) (1,001,074.37)

Accrued expense 1,004,946.02 (1,313,375.73) (308,429.71) Current portion of long-term debt 628,206.33 (399,145.87) 229,060.46 Inter-company payables 297,002.17 (511,464.72) (214,462.55) Other payables 1,728,193.55 (1,790,414.88) (62,221.33) Payable to the employees 12,797,964.20 (13,164,471.29) (366,507.09) Short-term borrowings 2,472,440.88 (2,468,940.88) 3,500.00 Tax and obligation to the State budget 400,969.33 (516,181.28) (115,211.95) Trade account payables 6,343,202.13 (6,510,004.35) (166,802.21)

Non-Current Liabilities 1,543,832.05 (1,185,661.89) 358,170.16 Owner's Equity 1,480,852.76 (2,766,612.83) (1,285,760.07)

IV. OWNER'S EQUITY 1,480,852.76 (2,766,612.83) (1,285,760.07) Retained earnings 1,367,051.62 (1,759,345.20) (392,293.58) Shared capital 112,147.06 (1,005,613.55) (893,466.49) Other comprehensive income 1,654.09 (1,654.08) 0.00

Revenue 22,816,429.79 (22,816,429.79) (0.00) V. REVENUES 22,816,429.79 (22,816,429.79) (0.00)

Revenue 22,487,788.87 (22,487,788.87) (0.00) Financial revenues 328,640.92 (328,640.92) (0.00)

Expenses 41,389,883.23 (41,389,883.20) 0.03 VI. EXPENSES 41,389,883.23 (41,389,883.20) 0.03

Cost of goods sold 18,411,275.82 (18,411,275.82) 0.00 1. Direct cost 13,313,849.08 (13,313,849.07) 0.01 2. Factory overhead expenses 5,515,862.73 (5,515,862.71) 0.02 Administration expenses 2,862,519.49 (2,862,519.49) (0.00) Selling expenses 942,378.28 (942,378.28) (0.00) Financial expenses 339,952.87 (339,952.87) 0.00 Financial revenues 4,044.97 (4,044.97) -

Other Income/Expense 68,124.40 (68,124.40) (0.00) VII. OTHER INCOME 54,897.44 (54,897.44) (0.00)

Other Income 54,897.44 (54,897.44) (0.00) VIII. OTHER EXPENSES 13,226.96 (13,226.96) -

Other Expenses 13,226.96 (13,226.96) - Net operating results 24,023,746.34 (24,023,746.34) (0.01)

IX. DETERMINE THE OPERATING BUSINESS RESULTS 24,023,746.34 (24,023,746.34) (0.01) Net operating results 24,023,746.34 (24,023,746.34) (0.01)

Net operating results 24,023,746.34 (24,023,746.34) (0.01) Net operating results 24,023,746.34 (24,023,746.34) (0.01)

Grand Total 238,661,062.05 (238,661,062.05) (0.00)

Preliminary validation

This summary is part of the

preliminary validation of the

journal entries that were

mapped to the updated Chart

of Accounts.



Scope of work and objectivesSummary results



Revenues - USD22.87 M

Expenses - USD22.57 M

Net profit - USD0.3 M

Analysis of results of operations

100% 99%

1%

We prepared a summary of the results of operations of

Sample Company for the last 8 years.

Items Amount %

1. Total revenue 22,487,788.87 100%

2. Deductible items 0%3. Net revenue 22,487,788.87 100%

4. Cost of goods sold 18,411,275.82 82%5. Gross profit 4,076,513.05 18%

6. Financial revenue 328,640.92 1%

7. Financial expenses 343,997.84 2%

8. Selling expenses 942,378.28 4%

9. Administrative expenses 2,862,519.49 13%10. Net profit from operating activities 256,258.36 1%

11. Other income 54,897.44 0%

12. Other expenses 13,226.96 0%13. Net other income 41,670.48 0%14. Profit before tax 297,928.84 1%

15. Enterprise income tax 0%16. Profit after tax 297,928.84 1%

17. Direct material expense 1,656,486.51 7%

18. Direct labor 11,657,362.57 52%

19. Factory overhead expenses 5,515,862.73 25%20. Total Manufacturing Costs 18,829,711.80 84%



Analysis of results of operations

…with financial information presented in a common

sized format, as percentage of revenue …

(1.00)

-

1.00

2.00

3.00

4.00

5.00

6.00

05 06 07 08 09 10 11 12

Mill

ion

s

Particulars 05 06 07 08 09 10 11 12 Total

Revenue 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cost of goods sold 100% 81% 76% 83% 80% 73% 76% 91% 81%

Financial revenue 0% 0% 0% 0% 0% 0% 0% 0% 0%

Financial expenses 12% 6% 3% 4% 2% 1% 0% 0% 2%

Selling expenses 5% 4% 4% 5% 5% 4% 4% 4% 4%

Administrative expenses 25% 19% 19% 15% 12% 9% 11% 12% 13%

Other income 5% 1% 0% 0% 0% 0% 0% 0% 0%

Other expenses 0% 0% 0% 0% 0% 0% 0% 0% 0%Proft (Loss) -37% -9% -1% -7% 2% 13% 10% -7% 1%

Revenues - USD22.87 M

Expenses - USD22.57 M

Net profit - USD0.3 M



Analysis of total revenue

Particulars Amount %Revenues (22,484,610.96) 98.55%

Sales of products (CMP price) (21,114,941.02) 92.54%Sales of products (non-CMP price) (1,218,982.25) 5.34%Non-commercial invoice (150,687.69) 0.66%

Financial revenues (328,640.92) 1.44%Other income (169,163.37) 0.74%financial revenues (147,449.93) 0.65%Interest income (12,020.64) 0.05%Unclassifed (6.97) 0.00%

Sale discounts (2,689.45) 0.01%Sale discounts (2,689.45) 0.01%

Sale returns (488.46) 0.00%Sale returns (488.46) 0.00%

Grand Total (22,816,429.79) 100.00%

98.55% 1.44%

0.01%

0.00%

0.01%

Revenues USD22.48 M

Financial revenues USD0.33 M

Sale discounts USD0.27 K

Sale returns USD0.05 K

99% 100% 100% 98%

96%

98% 99%

100%

1% 0% 0% 2%

4%

2% 1%

0%

94%

95%

96%

97%

98%

99%

100%

05 06 07 08 09 10 11 12 …with high level analytics of revenue accounts…



61.91%

29.29%

8.80% Direct labor

-USD11.66 M

Factory overhead

-USD5.52 M

Direct materials

-USD1.66 M

Analysis of total manufacturing costs

Particulars Amount %2. Direct labor 11,657,362.57 61.91%

Wages and salaries 9,494,410.19 50.42%Other expenses 1,035,549.14 5.50%Social insurance 776,602.81 4.12%Bonus 350,800.43 1.86%

3. Factory overhead expenses 5,515,862.73 29.29%Wages and salaries 2,014,697.07 10.70%Depreciation expenses 1,591,570.14 8.45%External expenses 1,189,056.69 6.31%Other expenses paid by cash 472,953.27 2.51%Tools and instruments 211,715.46 1.12%Material 29,680.13 0.16%Unclassifed 6,089.09 0.03%Unclassified 100.88 0.00%

1. Direct material expense 1,656,486.51 8.80%Auxiliaries material 1,546,686.35 8.21%Unclassifed 106,136.99 0.56%Main materials 3,663.17 0.02%

Grand Total 18,829,711.80 100.00%

42% 52% 58% 56% 62% 61% 64% 68%

51% 40% 34% 34%

30% 29% 26% 25%

8% 8% 8% 10% 8% 10% 10% 8%

0%

20%

40%

60%

80%

100%

05 06 07 08 09 10 11 12

…with similar high level analytics of total manufacturing

costs…



82%

13%

4% 2% Cost of goods sold

-USD18.41 M

Administration expenses

-USD2.86 M

Selling expenses

-USD0.94 M

Financial expenses

-USD0.34 M

Analysis of expenses (by function)

Particulars Amount %Cost of goods sold 18,411,275.82 82%

Cost of goods sold 9,553,862.51 42%Unclassifed 8,857,413.31 39%

Administration expenses 2,862,520.98 13%Wages and salary 1,207,901.80 5%Other expenses by cash 665,042.21 3%Preoperating cost 430,535.48 2%External service expenses 329,221.71 1%Taxes, fees 110,341.20 0%Provision for bad debt 85,444.44 0%Depreciation exp. 26,304.81 0%Office supplies 4,861.11 0%Tools 2,075.88 0%Unclassified 521.42 0%Unclassifed 270.93 0%

Selling expenses 942,378.28 4%External expenses 584,809.26 3%Other expenses paid by cash 265,044.63 1%Salary 61,128.27 0%Packing 31,396.11 0%

Financial expenses 344,559.56 2%Long-term interest expene 142,621.00 1%Short-term interest expene - Habubank 78,109.98 0%Leasing interest expense 48,010.07 0%Financial expenses 34,984.69 0%Exchange rate differencies 21,819.25 0%Different amount for payment in USD 13,469.59 0%Unclassifed 5,544.97 0%

Grand Total 22,560,734.63 100%

71% 74% 75% 78% 81% 84% 84% 85%

18% 17% 18% 14% 12% 11% 12% 11%

0%

20%

40%

60%

80%

100%

05 06 07 08 09 10 11 12

…with similar high level analytics of expense accounts…



70%

11%

1%

7%

3% 7%

Analysis of expenses (by nature)

Salary and employee benefits

-USD15.91 M

Other expenses

-USD2.54 M

Materials

-USD1.69 M

Depreciation expenses

-USD1.62 M

Utility costs

-USD0.72 M

Repairs and maintenance

-USD0.16 M

Particulars Amount %Salary and employee benefits 15,914,629.04 70%Other expenses 2,537,829.29 11%Materials 1,687,882.62 1%Depreciation expenses 1,617,874.95 7%Utility costs 719,141.86 3%Repairs and maintenance 156,460.95 7%Grand Total 22,633,818.71 100%

49% 59% 63% 64% 71% 70% 74% 76%

17%

15% 16% 13%

11% 11% 10% 9%

6% 6%

6% 8% 7% 9% 8% 6% 22%

15% 11% 10% 7% 7% 5% 4%

0%

20%

40%

60%

80%

100%

05 06 07 08 09 10 11 12

…with similar high level analytics of expense accounts…



Scope of work and objectivesDetailed analysis



Detailed results

ANALYSIS OF EXPENSES

I. ANNUAL ANALYSIS

II. QUARTERLY ANALYSIS

III. MONTHLY ANALYSIS

0.22 0.50

0.77

1.15

1.71 1.96

2.81

3.29

0.02

0.03

0.06

0.08

0.16

0.15

0.21

0.27

0.13

0.14

0.21

0.23

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

05 06 07 08 09 10 11 12

Milli

on

s

Annual

Other expenses paid by cash

Medical insurance

Training

Uniforms

Drink expense

Welfare

Severance allowance cost

Other

Annual leave

Transportation cost

Bonus

Meal expenses

Social insurance

Wages and salaries

Level 6

Year

Sum of Amount - USD

Level 1 Level 3 Type2 Level 4 Level 7

Level 7


Materials

Other expenses



Utility costs

Refresh

0

0.2

0.4

0.6

0.8

1

1.2

1.4

05

-Q1

05

-Q2

05

-Q3

05

-Q4

06

-Q1

06

-Q2

06

-Q3

06

-Q4

07

-Q1

07

-Q2

07

-Q3

07

-Q4

08

-Q1

08

-Q2

08

-Q3

08

-Q4

09

-Q1

09

-Q2

09

-Q3

09

-Q4

10

-Q1

10

-Q2

10

-Q3

10

-Q4

11

-Q1

11

-Q2

11

-Q3

11

-Q4

12

-Q1

12

-Q2

12

-Q3

12

-Q4

Mil

lio

ns

Quarter

Other expenses paid by cash

Medical insurance

Training

Uniforms

Drink expense

Welfare

Severance allowance cost

Other

Annual leave

Transportation cost

Bonus

Meal expenses

Social insurance

Wages and salaries

Level 6

QuarterYear

Sum of Amount - USD


Level 7

Materials

Other expenses



Utility costs

ZZ

0

20

40

60

80

100

120

140

160

180

J05

F0

5

A0

5

S0

5

D0

5

J06

A0

6

J06

J06

A0

6

S0

6

O0

6

N0

6

D0

6

J07

F0

7

M0

7

A0

7

M0

7

J07

S0

7

N0

7

D0

7

J08

F0

8

A0

8

J08

J09

J09

A0

9

S0

9

O0

9

J10

F1

0

M1

0

M1

0

J10

J10

A1

0

S1

0

O1

0

N1

0

D1

0

J11

F1

1

M1

1

A1

1

M1

1

J11

J11

A1

1

S1

1

O1

1

N1

1

D1

1

J12

F1

2

M1

2

A1

2

M1

2

J12

J12

A1

2

S1

2

O1

2

N1

2

D1

2

1 2 4 9 12 13 16 18 19 20 21 22 23 24 25 26 27 28 29 30 33 35 36 37 38 40 42 49 55 56 57 58 61 62 63 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

Th

ou

san

ds

Bonus

Bonus

Level 6

Period MonthYear

Sum of Amount - USD

Level 1 Level 3 Type2 Level 4 Level 7Level 7


0


Materials

Other expenses


Utility costs

Level 6

Bonus

Building repair

Carton boxes

Coal

Commission fee

70%

11%

1%

7%

3% 7%

Analysis of Expenses

Salary and employee

benefits

-USD15.91 M Other expenses

-USD2.54 M

Materials

-USD1.69 M


-USD1.62 M

Utility costs

-USD0.72 M


-USD0.16 M

We developed interactive charts that allowed

Management to spot unusual transactions and events…



Detailed results

ANALYSIS OF EXPENSES

Month Month Year

Date Transaction No. Description Payee/ Receiver Amount (VND) Amount (USD)

1 J05 1/31/2005 JV01-04-05 Accrual of Staff's Tet holiday & Allowances for the month of Jan '05. Ref. DV#???. 3,929,000.00 248.75 2 F05 2/28/2005 JV02-01-05 Accrual of Employees's salary for the month of Feb '05. Ref. DV#00229. 1,293,342.86 81.88 4 A05 4/28/2005 BTTL to record the expenses of bonus on May day 13,200,000.00 833.75 9 S05 9/1/2005 PCTM 330 Pay bonus to employees in the festival of Sep 02 19,140,000.00 1,205.13

9/30/2005 PCTM 383 Line efficiency bonus for supervisor & Ass supervisor in August 1,279,544.00 80.51 12 D05 12/31/2005 PCTM 595 Bonus for staff and worker on the occasion of solar holiday - 2006 2,210,000.00 138.88

Bonus for staff in workshop section on the occasion of solar holiday - 2006 2,670,000.00 167.79 Bonus for workers on the occasion of solar holiday - 2006 16,900,000.00 1,062.02

13 J06 1/25/2006 PCTM 062a Pay bonus for Tet holiday 2006 Employees 63,552,550.00 3,994.50 PCTM 062b Pay bonus for Tet holiday for accountant Accountant 7,250,000.00 455.69

16 A06 4/29/2006 PKT 127 Bonus to administration department on the occasion of May day and 30 April 0 980,000.00 61.46 Bonus to import and export department on the occasion of May day and 30 April 0 150,000.00 9.41 Bonus to workers on the occasion of May day and 30 April Employees 23,800,000.00 1,492.63 Bonus to workshop worker on the occasion of May day and 30 April 0 3,370,000.00 211.35

18 J06 6/26/2006 PCTM 369 Payt extra bonus in year 2005 for Ms Hue - QC employee 255,000.00 15.95 PCTM 370 Payt bonus for the best supervisor, Ass sup, best line in May Line 2, line 10 5,350,000.00 334.54

19 J06 7/31/2006 PKT 315 Accrued: bonus for worker in June and July employee 10,700,000.00 668.50 20 A06 8/31/2006 PKT 394 Accrued piece rate bonus in Aug for workers employee 5,350,000.00 334.96 21 S06 9/1/2006 PCTM 496 Payt bonus on Independence day for Admin Dep. employee 4,250,000.00 266.07

Level 6

Bonus

Building repair

Carton boxes

Coal

Commission fee

0

20

40

60

80

100

120

140

160

180

J05 F05 A05 S05 D05 J06 A06 J06 J06 A06 S06 O06 N06 D06 J07 F07 M07 A07 M07 J07 S07 N07 D07 J08 F08 A08 J08 J09 J09 A09 S09 O09 J10 F10 M10M10 J10 J10 A10 S10 O10 N10 D10 J11 F11 M11 A11 M11 J11 J11 A11 S11 O11 N11 D11 J12 F12 M12 A12 M12 J12 J12 A12 S12 O12 N12 D12

1 2 4 9 12 13 16 18 19 20 21 22 23 24 25 26 27 28 29 30 33 35 36 37 38 40 42 49 55 56 57 58 61 62 63 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

Th

ou

san

ds

Bonus

Bonus

Level 6

Period MonthYear

Sum of Amount - USD


Refresh

Level 7

Salary and employ...

0

Depreciation expe...

Materials

Other expenses

Repairs and maint...

70%

11%

1%

7%

3% 7%

Analysis of Expenses


-USD15.91 M

Other expenses

-USD2.54 M

Materials

-USD1.69 M


-USD1.62 M

Utility costs

-USD0.72 M


-USD0.16 M

…with the ability to drill drown and further investigate

unusual items…



Detailed results

We also built additional interactive charts that allowed

Management in identifying other unusual items and

trends by comparing financial and non-financial data.



Detailed results

…with trend analysis of price increases….



Detailed results

…with other various ways of analysing data to include

analysis of heavily procured items by department and

vendor…

Total Purchases Per Department/Vendor

Vendor A

Other Vendors

Department ADepartment BDepartment CDepartment DDepartment EDepartment FDepartment GDepartment HDepartment I

Item 1Item 2Item 3Item 4Item 5Item6

Total Purchases Per Item

Item 1

02. Illustrative Management Reporting Package

Documents

Transcript of 02. Illustrative Management Reporting Package