State enterprises with financial instability will be closely supervised on finances. — Photo vinamaso

HA NOI (Biz Hub) — State enterprises will be closely supervised on finances if accountant audits disclose any financial instability, according to decree No.61/2013/ND-CP.

The decree is about financial supervision, performance assessment and disclosure of financial information applicable to state-owned enterprises and state-capitalized enterprises.

It lists four types of state enterprises which will be supervised on financial conditions, production and business operations.

First, firms showing a loss with debt equity ratio exceeding the regulated safe point.

Second, companies having additional loss accounting for more than 30 per cent of their equity or for an accumulated loss greater than 50 per cent of their equity.

Third, enterprises having a liquidity ratio smaller than 0.5.

Fourth, firms reporting incorrect financial statistics, which give incorrect business results.

The decree will take effect on August 15. — VNS