KDG Vietnam Steel Co. Ltd.
KDG Vietnam Steel Co. Ltd. runs a factory located in My Phuoc 3 Industrial Park, Binh Duong Province, with a capacity of 7,000 tons/month with more than 100 full-time employees. KDG’s main activities are producing and trading all kinds of iron, steel and steel products. KDG’s consumption market is mainly exported to regional countries such as Thailand and Indonesia, partly sold in the domestic market.
TAX PLANNING
KDG’s demand over working capital is huge due to its operation in steel manufacturing industry, primarily from banking credit sources. However, specialized finance department is not available in the company, so banking-related tasks were assigned to the accounting department, while this deparment’s function is to prepare financial statements data, without experience in preparing credit files such as business plans, loan flow planning, etc.
Bank disbursement profiles are often delayed due to multiple replenishment, and fail to meet requirements from Banks. The purchase of raw materials is affected thereby, resulting in potential delay of the plant’s production schedule.
Since the application of the procedure advised by TPM, the disbursement time for each set of documents decreased from about 1 week to a maximum of 2 working days. This especially supports the supply and production department may follow the original production plan.
The document preparation process of the Company was also highly appreciated by Banks, generating more prestige of the business.
TPM assisted KDG to build a specialized finance department with 2 employees included. Meanwhile, establishing a process of credit documents, from the stage of business plan preparation, capital demands, analysis of operation performance, etc. to preparation of disbursement documents (such as debt covenant, purchase and sale contracts, invoices, payment documents, etc.) at the Bank’s requirements.