Exhibit 99.9
Entity 68
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
Audited reconciliation of financial statements to
Unites States Generally Accepted Accounting Principle (US. GAAP)
for the year ended 31 December 2020
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
CONTENTS
| Page(s) | |
| REPORT OF DIRECTOR | 1 - 2 |
| INDEPENDENT AUDITORS’ REPORT | 3 - 4 |
| AUDITED RECONCILIATION OF FINANCIAL STATEMENTS | |
| Reconciliation statement of operation | 5 |
| Statement of operation | 6 |
| Balance sheets | 7 – 9 |
| Note to the financial statements | 10 - 18 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
Director of Unique Logistics International (Vietnam) Co., Ltd. (“The Company”) has the pleasure in presenting this report and the Company’s audited reconciliation of financial statements to US. GAAP for the year ended 31 December 2020.
| 1. | General information |
Unique Logistics International (Vietnam) Co., Ltd. is limited liability company with two or more members incorporated in Vietnam pursuant to the Business Registration Certificate No, 0310403753 on 11 October 2010 and the next amendments with the latest amendments registered on the 4th amendment issued on 23 July 2020 issued by the Planning and Investment Department of Ho Chi Minh City regarding the changes of owners’ equity.
Operating duration of the Company is 20 years since 11 October 2010
The Company’s head office
| - Address | : | No,181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City |
| - Telephone | : | 028 3822 2352 |
| - Fax | : | 028 3829 5440 |
The Company has a branch in Hanoi operated according to the first Registration Certificate No, 0310403753-001 on 24 June 2011 and the next amendments with the latest amendments registered on the fifth amendment on 03 August 2020 issued by the Planning and Investment Department of Hanoi City.
The branch office is located at Floor 5, Han Viet Building, 203 Minh Khai Street, Minh Khai Ward, Hai Ba Trung District, Ha Noi City.
According to the third amendment Investment Registration Certificate dated 28 October 2020, the principal activities of the Company are to provide forwarding services
In 2020, the main activities of the Company are to provide forwarding services.
| 2. | The member of Member Council and Director |
Members of Member Council and Director during the financial year and at the date of this report are:
Member Council
| Full name | Nationality | Position | ||
| Mr, Lee, Patrick Man Bun | Canadian | Chairman | ||
| Mr, Tran Duy Hoa | Vietnamese | Member |
Director
| Full name | Position | |
| Mr, Tran Duy Hoa | Director |
Legal representative
The legal representative of the Company during the financial year and at the date of this report is
| Mr, Tran Duy Hoa | Director |
| 3. | Events since the balance sheet date |
There have been no significant events occurring after the balance sheet date which would require adjustments or disclosures to be made in the financial statements.
| 1 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
REPORT OF DIRECTOR
| 4. | Auditors |
AFC Vietnam Auditing Company Limited has been appointed to perform the audit for the year ended 31 December 2020.
| 5. | Publication of the financial statements |
Director does hereby publish that the accompanying reconciliation of financial statements to US. GAAP which give a true and fair view of the financial position of the Company as at 31 December 2020 and the results of its operations of the Company for the year then ended in accordance with the Unites States Generally Accepted Accounting Principle (US GAAP) and the statutory requirements relevant to preparation and presentation of the financial statements.
| TRAN DUY HOA | |
| Director | |
| Ho Chi Minh City, 15 August 2021 |
| 2 |
| To: | The members of Member Council and Director |
| Unique Logistics International (Vietnam) Co., Ltd. |
We have audited the accompanying reconciliation of financial statements to US GAAP of Unique Logistics International (Vietnam) Co., Ltd. prepared on 15 August 2021 and set out from pages from 5 to 21, which comprise the balance sheet as at 31 December 2020, and the statement of operations for the year then ended and Note to the financial statements thereto.
Director’s Responsibility for the Financial Statements
Director is responsible for the preparation and fair presentation of these financial statements in accordance with the Unites States Generally Accepted Accounting Principle and comply with relevant statutory requirements to preparation and presentation of 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit, We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Director, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for audit opinion.
Auditor’s opinion
In our opinion, the accompanying financial statements give a true and fair view, in all material respects, of the reconciliation of financial statements of Unique Logistics International (Vietnam) Co., Ltd. as at 31 December 2020 included balance sheets and statement of operations for the year then ended in accordance with the Unites States Generally Accepted Accounting Principles and the statutory requirements relevant to preparation and presentation of the financial statements.
| 3 |
INDEPENDENT AUDITORS’ REPORT
(Cont.)
Limitation
Without qualifying our above opinion, we would like to note that the financial statements are prepared for the purpose of internal management of Unique Logistics International (Vietnam) Co., Ltd. Therefore, this report may not be appropriate for any other purpose. Our audit report is only for Unique Logistics International (Vietnam) Co., Ltd. and its partners. It is not available to any other parties than Unique Logistics International (Vietnam) Co., Ltd.
Other matters
Unique Logistics International (Vietnam) Co., Ltd, has prepared other financial statements for the purpose of its tax finalization for the financial year-ended 31 December 2020 in accordance with Vietnamese Accounting Standards and Vietnamese Accounting System relating to preparation and presentation of the financial statements. These financial statements have been audited by another Auditor.
Unique Logistics International (Vietnam) Co., Ltd, has prepared other financial statements for the purpose of internal management for the financial year ended 31 December 2020 in accordance with Vietnamese Accounting Standards and Vietnamese Accounting System (VAS) relating to preparation and presentation of the financial statements dated 09 March 2021.
| /s/ DANG THI MY VAN | /s/ NGUYEN NGOC ANH TRUC | |
| General Director | Auditor | |
Audit Practicing Registration Certificate No, 0173-2018-009-1 |
Audit Practicing Registration Certificate No, 5517-2021-009-1 | |
| AFC VIETNAM AUDITING COMPANY LIMITED | ||
| Ho Chi Minh City, 15 August 2021 | ||
| 4 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
RECONCILIATION STATEMENT OF OPERATIONS
For the financial year ended 31 December 2020
| 2020 | 2019 | |||||||
| USD | USD | |||||||
| Net profit/(loss) after tax, reported | 1,567,733.56 | 410,221.10 | ||||||
| Adjustment | ||||||||
| Labour cost due to incentive in year | (80,230.70 | ) | 2,733.36 | |||||
| Current CIT expenses | - | (546.67 | ) | |||||
| Total adjustment | (80,230.70 | ) | 2,186.69 | |||||
| Net profit/(loss) after tax, US. GAAP | 1,487,502.86 | 412,407.79 | ||||||
| Other comprehensive, reported | ||||||||
| Translation adjustment | 42,444.68 | 4,588.93 | ||||||
| Comprehensive, US. GAAP | 1,529,947.54 | 416,996.72 | ||||||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 15 August 2021 |
| 5 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
For the financial year ended 31 December 2020
| 2020 | 2019 | |||||||
| USD | USD | |||||||
| Net service sales | 30,858,740.07 | 8,963,487.52 | ||||||
| Total net sales | 30,858,740.07 | 8,963,487.52 | ||||||
| Cost of service sales | 27,688,906.80 | 7,750,152.13 | ||||||
| Total cost of sales | 27,688,906.80 | 7,750,152.13 | ||||||
| Gross profit/(loss) | 3,169,833.27 | 1,213,335.39 | ||||||
| Selling, general and administrative expenses | 1,083,749.18 | 690,478.87 | ||||||
| Income from operations | 2,086,084.09 | 522,856.52 | ||||||
| Interest and others, net | (200,637.64 | ) | (7,346.79 | ) | ||||
| Income before income taxes | 1,885,446.45 | 515,509.73 | ||||||
| Income tax expense | 397,943.59 | 103,101.94 | ||||||
| Net income | 1,487,502.86 | 412,407.79 | ||||||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 15 August 2021 |
| 6 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
As at 31 December 2020
| Reported | Increase/ (Decrease) | US GAAP | ||||||||||
| USD | USD | USD | ||||||||||
| CURRENT ASSETS | 8,152,603.09 | 12,784.57 | 8,165,387.66 | |||||||||
| Cash and cash equivalents | 516,501.72 | - | 516,501.72 | |||||||||
| Current account receivables | 7,623,365.54 | - | 7,623,365.54 | |||||||||
| Other current receivables | - | 1,239.87 | 1,239.87 | |||||||||
| Current advances to supplies | 30.35 | (30.35 | ) | - | ||||||||
| Other current assets | 1,239.87 | (1,239.87 | ) | - | ||||||||
| Current prepaid expenses | 11,465.61 | 12,814.92 | 24,280.53 | |||||||||
| NON-CURRENT ASSETS | 49,344.55 | (12,784.57 | ) | 36,559.98 | ||||||||
| Other non-current receivables | 36,559.98 | - | 36,559.98 | |||||||||
| Non-current prepaid expenses | 12,784.57 | (12,784.57 | ) | - | ||||||||
| TOTAL ASSETS | 8,201,947.64 | - | 8,201,947.64 | |||||||||
| LIABILITIES | 6,016,328.85 | 78,024.53 | 6,094,353.38 | |||||||||
| Current liabilities | 5,913,761.84 | 78,024.52 | 5,991,786.36 | |||||||||
| Current account payables (Obligation in Operating cycles) | 2,804,022.60 | 1,674,284.99 | 4,478,307.59 | |||||||||
| Current advance from customers | 3,032.95 | (3,032.95 | ) | - | ||||||||
| Taxes and obligation payable to the State | 624,198.10 | (624,198.10 | ) | - | ||||||||
| Payable to employees | 222,548.16 | (222,548.16 | ) | - | ||||||||
| Current accrued expenses | 98,599.98 | (98,599.98 | ) | - | ||||||||
| Other current liability | 1,023,630.33 | (647,881.28 | ) | 375,749.05 | ||||||||
| Current loan and finance lease | 1,137,729.72 | - | 1,137,729.72 | |||||||||
| Non-current liabilities | 102,567.01 | 0.01 | 102,567.02 | |||||||||
| Non-current obligation in Operating cycles | - | 2,502.32 | 2,502.32 | |||||||||
| Non-current accrued expenses | 2,416.05 | (2,416.05 | ) | - | ||||||||
| Other non-current liabilities | 86.26 | (86.26 | ) | - | ||||||||
| Non-current loans and finance lease | 100,064.70 | - | 100,064.70 | |||||||||
| OWNER’S EQUITY | 2,185,618.79 | (78,024.53 | ) | 2,107,594.26 | ||||||||
| Owners’ invested equity | 143,754.06 | 16,895.94 | 160,650.00 | |||||||||
| Retained earnings | 2,041,864.73 | (94,920.47 | ) | 1,946,944.26 | ||||||||
| TOTAL RESOURCES | 8,201,947.64 | 0.00 | 8,201,947.64 | |||||||||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 15 August 2021 |
| 7 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
BALANCE SHEET
As at 31 December 2019
| Reported | Increase/ (Decrease) | US. GAAP | ||||||||||
| USD | USD | USD | ||||||||||
| CURRENT ASSETS | 2,287,834.07 | 6,673.28 | 2,294,507.35 | |||||||||
| Cash and cash equivalents | 325,896.00 | - | 325,896.00 | |||||||||
| Current trade receivables | 1,106,565.38 | 849,497.18 | 1,956,062.56 | |||||||||
| Other current receivables | 849,497.18 | (849,497.18 | ) | - | ||||||||
| Current prepaid expenses | 5,875.51 | 6,673.28 | 12,548.79 | |||||||||
| NON-CURRENT ASSETS | 19,276.23 | (6,673.28 | ) | 12,602.95 | ||||||||
| Other non-current receivables | 12,602.95 | - | 12,602.95 | |||||||||
| Non-current prepaid expenses | 6,673.28 | (6,673.28 | ) | - | ||||||||
| TOTAL ASSETS | 2,307,110.30 | 0.00 | 2,307,110.30 | |||||||||
| LIABILITIES | 991,745.42 | (2,188.09 | ) | 989,557.33 | ||||||||
| Current liabilities | 991,659.32 | (2,188.09 | ) | 989,471.23 | ||||||||
| Current account payables (Obligation in Operating cycles) | 544,757.78 | 344,734.97 | 889,492.75 | |||||||||
| Taxes and obligation payable to the State | 278,715.11 | (278,715.11 | ) | - | ||||||||
| Payable to employees | 49,875.70 | (49,875.70 | ) | - | ||||||||
| Current accrued expenses | 18,332.25 | (18,332.25 | ) | - | ||||||||
| Current loan and finance lease | 99,978.48 | - | 99,978.48 | |||||||||
| Long-term liabilities | 86.10 | - | 86.10 | |||||||||
| Non-current obligation in Operating cycles | - | 86.10 | 86.10 | |||||||||
| Other long-term liabilities | 86.10 | (86.10 | ) | - | ||||||||
| OWNER’S EQUITY | 1,315,364.88 | 2,188.09 | 1,317,552.97 | |||||||||
| Owners’ invested equity | 143,288.74 | 17,361.26 | 160,650.00 | |||||||||
| Retained earnings | 1,172,076.14 | (15,173.17 | ) | 1,156,902.97 | ||||||||
| TOTAL RESOURCES | 2,307,110.30 | 0.00 | 2,307,110.30 | |||||||||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 15 August 2021 |
| 8 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
BALANCE SHEET
As at 01 January 2019
| Reported | Increase/ (Decrease) | US. GAAP | ||||||||||
| USD | USD | USD | ||||||||||
| CURRENT ASSETS | 1,883,908.30 | 3,816.53 | 1,887,724.83 | |||||||||
| Cash and cash equivalents | 103,722.77 | - | 103,722.77 | |||||||||
| Current trade receivables | 1,041,967.53 | 721,598.55 | 1,763,566.08 | |||||||||
| Other current receivables | 721,598.55 | (710,598.41 | ) | 11,000.14 | ||||||||
| Current prepaid expenses | 5,619.32 | 3,816.52 | 9,435.84 | |||||||||
| VAT deductibles | 11,000.13 | (11,000.13 | ) | - | ||||||||
| NON-CURRENT ASSETS | 15,560.06 | (3,816.52 | ) | 11,743.54 | ||||||||
| Other non-current receivables | 11,743.54 | - | 11,743.54 | |||||||||
| Non-current prepaid expenses | 3,816.52 | (3,816.52 | ) | - | ||||||||
| TOTAL ASSETS | 1,899,468.36 | 0.01 | 1,899,468.37 | |||||||||
| LIABILITIES | 998,912.11 | (0.01 | ) | 998,912.10 | ||||||||
| Current liabilities | 998,912.11 | (0.01 | ) | 998,912.10 | ||||||||
| Current account payables (Obligation in Operating cycles) | 443,944.77 | 339,577.95 | 783,522.72 | |||||||||
| Taxes and obligation payable to the State | 234,459.01 | (234,459.01 | ) | - | ||||||||
| Payables to employees | 95,465.12 | (95,465.12 | ) | - | ||||||||
| Current accrued expenses | 9,653.83 | (9,653.83 | ) | - | ||||||||
| Other current liability | 116,190.63 | - | 116,190.63 | |||||||||
| Current loan and finance lease | 99,198.75 | - | 99,198.75 | |||||||||
| OWNER’S EQUITY | 900,556.25 | 0.02 | 900,556.27 | |||||||||
| Owners’ invested capital | 143,134.30 | 17,515.70 | 160,650.00 | |||||||||
| Undistributed profit after tax | 757,421.95 | (17,515.68 | ) | 739,906.27 | ||||||||
| TOTAL RESOURCES | 1,899,468.36 | 0.01 | 1,899,468.37 | |||||||||
| - | ||||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief accountant | Director | ||
| Ho Chi Minh City, 15 August 2021 |
| 9 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
There notes form an integral part of and should be read in conjunction with the accompanying financial statements.
| 1. | BUSINESS HIGHLIGHT |
| 1.1 | Ownership structure |
Unique Logistics International (Vietnam) Co., Ltd. is limited liability company with two or more members incorporated in Vietnam pursuant to the Business Registration Certificate No. 0310403753 on 11 October 2010 and the next amendments with the latest amendments registered on the 4th amendment issued on 23 July 2020 issued by the Planning and Investment Department of Ho Chi Minh City regarding the changes of owners’ equity.
| 1.2 | Scope of business activities |
The scope of business activities is to provide forwarding services.
| 1.3 | The principal activities |
According to the third amendment Investment Registration Certificate dated 28 October 2020, the Company’s principal activities are to provide forwarding services.
In 2020, the main activities of the Company are to provide forwarding services.
| 1.4 | Normal business cycle |
The normal business cycle of the Company is not exceeding 12 months.
| 1.5 | Statement of comparative presentation of information in the financial statements |
The figures are presented in the financial statements for the financial year ended 31 December 2020 compared with the corresponding figures of previous year.
| 1.6 | The number of employees |
The number of the Company’s employees as at 31 December 2020 was 53 (as at 31 December 2019 the number of employees was 37).
| 2. | FINANCIAL YEAR, ACCOUNTING CURRENCY ACCOUNTING |
| 2.1 | Financial year |
The Company’s financial year starts from 01 January and ends at 31 December annual.
| 2.2 | Accounting currency |
The Company maintains its accounting records in Viet Nam Dong (“VND”).
| 3. | ACCOUNTING STANDARDS AND SYSTEM |
As at 31 December 2020 and for the financial year ended 31 December 2020 and 2019 (audited)
The reconciliation of the audited financial statements to Unites Statess generally accepted accounting principles (U.S. GAAP) as at 31 December 2020 and for the financial year ended 31 December 2020 and 2019, has been prepared following the same accounting policies and methods of computation as the reconciliation of the financial statements to U.S. GAAP for the year ended 31 December 2019. The disclosures provided below are incremental to those included with the annual financial statements and the reconciliation of those financial statements to U.S. GAAP.
| 10 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
The reconciliation of the audited financial statements to U.S. GAAP should be read in conjunction with the financial statements and the reconciliation of the consolidated financial statements to U.S. GAAP for the year ended 31 December 2019.
The significant differences between Vietnamese Accounting Standards and Vietnamese Accounting Systems as they apply to Unique Logistics International (Vietnam) Co., Ltd. are as follows:
| a. | According to ASC 606 Revenue from Contracts with Customers, revenue is recognised when control of the promised good and service is transfers to the Company’s customers. In an amount that reflects the consideration, the Company expects to receive in exchange of service. The Company recognizes revenue upon meeting each performance obligations based on the allocated amount of the total consideration of the contract to each specific performance obligations. |
According to VAS 14 Revenue and other income, the revenue of transaction related to the services is recorded when the result of the transaction can be measured reliably. In case that the services are to be provided in many accounting periods, the determination of sales in each period is done on the basis of the service completion rate as of the balance sheet date. Revenue is recognized upon completion of services provided when satisfy all four conditions:
| ● | Revenue can be measured reliably; | |
| ● | It is possible to obtain economic benefits from the service provision transaction; | |
| ● | The work volume finished on the date of making the accounting balance sheet can be determined; | |
| ● | The costs incurred from the service provision transaction and the costs of its completion can be determined. |
There is no any difference relating to the revenue recognition policies between US. GAAP and VAS. Therefore, no need to make any adjustment with the Company’s revenue.
| b. | In 2021, the Company recognized an additional bonus expense for sales staff in 2020 with the amount of USD 80,230.70. The adjustment to increase expenses in 2020 does not reduce the CIT expense in 2020 because this expense is an expense that is not deductible when calculating CIT. It makes profit after tax in 2020 decrease USD 80,230.70. Under US. GAAP, any error in the financial statement statements of 2020 discovered after the financial statements are issued or available to be issued in 2021 shall be reported as an error correction by restating the financial year 2020. |
| c. | Under US. GAAP, prepaid expenses include insurance, interest, rents, taxes, unused royalties, current paid advertising service not yet received, operating supplies and paid in advance. Current advances to suppliers in VAS classified as current prepaid expenses. |
| d. | Under US. GAAP, other assets include: cash and claims to cash that are restricted as to withdrawal or use for other than current operations, as designated for expenditure in the acquisition or construction of noncurrent assets, or are segregated for the liquidation of long-term debts; investments in securities or advances that have been made for the purpose of control, affiliation, or other continuing business advantage; receivables arising from unusual transactions that are not expected to be collected with in 12 months; cash surrender value of life insurance policies; land and other natural resources; depreciable assets… VAT deductibles, which classified as other current assets in VAS, classified as other current receivables. |
| e. | Under US. GAAP, prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during operating cycle. Non-current prepaid expenses in VAS classified as current prepaid expenses. |
| 11 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
| f. | Under US. GAAP, obligations in the operating cycle include: payables incurred in the acquisition of materials and supplies to be used in the production of good or in providing services to be offered for sales; collection received in advance of the delivery of goods or performance of service; debts that arise from operation directly related to the operating cycles, such as accrual for wage, salaries, commission, rentals, royalties, and income and other taxes. Current advance from customers, Statutory obligations, payables to employees, current/ non-current accrued expenses, payables due to paying on behalf in VAS classified as Obligation in the operating cycle. |
| g. | According to Note 2.2, the Company maintains its accounting records in Viet Nam Dong. Financial statements prepared in VND are translated to USD for publishing with relating parties under bellowing principles: |
| - | For all items which is reclassifying as assets, the buying exchange at 31 December 2020 of HSBC Bank (Vietnam) Ltd. – Ho Chi Minh City branch shall be used with the mount VND 23,005/ USD; | |
| - | For all items which is reclassifying as assets, the buying exchange at 31 December 2020 of HSBC Bank (Vietnam) Ltd. – Ho Chi Minh City branch shall be used with the mount VND 23,185/ USD; | |
| - | For owner’s equity which is contributed by owners, the exchange rate at the investment date shall be used; | |
| - | For all items in Statement of Operations, the approximate exchange rate in 2020 shall be used. |
Translation adjustment result from the process of translating that entity’s financial statements into the reporting currency. Translation adjustments shall not be included in determining net income but shall be reported in other comprehensive income.
As at 31 December 2019 and for the financial year ended 31 December 2019
The reconciliation of the audited financial statements to United States generally accepted accounting principles (U.S. GAAP) as at 31 December 2019 and for the financial year ended 31 December 2019, has been prepared following the United States generally accepted accounting principles. The disclosures provided below are incremental to those included with the annual financial statements and the reconciliation of those financial statements to U.S. GAAP.
The significant differences between Vietnamese Accounting Standards and Vietnamese Accounting Systems as they apply to Unique Logistics International (Vietnam) Co., Ltd. are as follows:
| a. | According to ASC 606 Revenue from Contracts with Customers, revenue is recognised when control of the promised good and service is transfers to the Company’s customers. In an amount that reflects the consideration, the Company expects to receive in exchange of service. The Company recognizes revenue upon meeting each performance obligations based on the allocated amount of the total consideration of the contract to each specific performance obligations. |
According to VAS 14 Revenue and other income, the revenue of transaction related to the services is recorded when the result of the transaction can be measured reliably. In case that the services are to be provided in many accounting periods, the determination of sales in each period is done on the basis of the service completion rate as of the balance sheet date. Revenue is recognized upon completion of services provided when satisfy all four conditions:
| ● | Revenue can be measured reliably; | |
| ● | It is possible to obtain economic benefits from the service provision transaction; | |
| ● | The work volume finished on the date of making the accounting balance sheet can be determined; | |
| ● | The costs incurred from the service provision transaction and the costs of its completion can be determined. |
| 12 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
There is no any difference relating to the revenue recognition policies between US. GAAP and VAS. Therefore, no need to make any adjustment with the Company’s revenue.
| b. | In 2021, the Company reduced the bonus expenses for sales staff in 2019 to USD 2,733.36. The effect of this downward adjustment makes the CIT expense of 2019 decrease USD 546.67. Total effect of adjustment in 2019 is USD 2.186,69. Under US. GAAP, any error in the financial statement statements of 2019 discovered after the financial statements are issued or available to be issued in 2021 shall be reported as an error correction by restating the financial year 2019. |
| c. | Under US. GAAP, receivables due to receiving on behalf is classified account receivables. Other current account receivables in VAS classified as account receivables. |
| d. | Under US. GAAP, prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during operating cycle. Non-current prepaid expenses in VAS classified as current prepaid expenses. |
| e. | Under US. GAAP, obligations in the operating cycle include: payables incurred in the acquisition of materials and supplies to be used in the production of good or in providing services to be offered for sales; collection received in advance of the delivery of goods or performance of service; debts that arise from operation directly related to the operating cycles, such as accrual for wage, salaries, commission, rentals, royalties, and income and other taxes. Current advance from customers, Statutory obligations, payables to employees, current/ non-current accrued expenses, payables due to paying on behalf in VAS classified as Obligation in the operating cycle. |
| f. | According to Note 2.2, the Company maintains its accounting records in Viet Nam Dong. Financial statements prepared in VND are translated to USD for publishing with relating parties under bellowing principles: |
| - | For all items which is reclassifying as assets, the buying exchange at 31 December 2020 of HSBC Bank (Vietnam) Ltd. – Ho Chi Minh City branch shall be used with the mount VND 23,110/ USD; | |
| - | For all items which is reclassifying as assets, the buying exchange at 31 December 2020 of HSBC Bank (Vietnam) Ltd. – Ho Chi Minh City branch shall be used with the mount VND 23,230/ USD; | |
| - | For owner’s equity which is contributed by owners, the exchange rate at the investment date shall be used; | |
| - | For all items in Statement of Operations, the approximate exchange rate in 2020 shall be used. |
Translation adjustment result from the process of translating that entity’s financial statements into the reporting currency. Translation adjustments shall not be included in determining net income but shall be reported in other comprehensive income.
As at 01 January 2019
The significant differences between Vietnamese Accounting Standards and Vietnamese Accounting Systems as they apply to Unique Logistics International (Vietnam) Co., Ltd. are as follows:
| a. | In 2020, the Company recognized an additional bonus expense for sales staff in 2018 with the amount of USD 82,811.17. The adjustment to increase expenses in 2020 does not reduce the CIT expense in 2018 because this expense is an expense that is not deductible when calculating CIT. Under US. GAAP, any error in the financial statement statements of 2018 discovered after the financial statements were issued in 2019 shall be restating the opening balance. The effect of restating the opening balance is as follows: |
| 13 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
31/12/2018 Reported | Increase/ (Decrease) | 01/01/2019 Restated | ||||||||||
| USD | USD | USD | ||||||||||
| Balance sheet | ||||||||||||
| Payables to employees | 12,653.95 | 82,811.17 | 95,465.12 | |||||||||
| Undistributed profit after tax | 840,233.12 | (82,811.17 | ) | 757.421,95 | ||||||||
| b. | Under US. GAAP, receivables due to receiving on behalf is classified account receivables. Other current account receivables in VAS classified as account receivables. |
| c. | Under US. GAAP, prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during operating cycle. Non-current prepaid expenses in VAS classified as current prepaid expenses. |
| d. | Under US. GAAP, other assets include: cash and claims to cash that are restricted as to withdrawal or use for other than current operations, as designated for expenditure in the acquisition or construction of noncurrent assets, or are segregated for the liquidation of long-term debts; investments in securities or advances that have been made for the purpose of control, affiliation, or other continuing business advantage; receivables arising from unusual transactions that are not expected to be collected with-in 12 months; cash surrender value of life insurance policies; land and other natural resources; depreciable assets… VAT deductibles, which classified as other current assets in VAS, classified as other current receivables. |
| e. | Under US. GAAP, obligations in the operating cycle include: payables incurred in the acquisition of materials and supplies to be used in the production of good or in providing services to be offered for sales; collection received in advance of the delivery of goods or performance of service; debts that arise from operation directly related to the operating cycles, such as accrual for wage, salaries, commission, rentals, royalties, and income and other taxes. Current advance from customers, Statutory obligations, payables to employees, current/ non-current accrued expenses, payables due to paying on behalf in VAS classified as Obligation in the operating cycle. |
| 4. | OTHER INFORMATION |
| 4.1 | Transactions and balances with key management members, the individuals involved with key management members |
The key management members include members of the Management Board and Director. Individuals associated with key management members are close members in the family of key management members.
Transactions with key management members, the individuals involved with key management members
The Company had no incurred sales and services rendered transactions as well as other transactions with key management member and individuals related to key management members.
| 14 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Liabilities to key management members and individuals related to key management members
Liabilities to key management members and individuals related to key management members are as following:
| 31/12/2020 | 31/12/2019 | 01/01/2019 | ||||||||||
| USD | USD | USD | ||||||||||
| Mr. Tran Duy Hoa | ||||||||||||
| Other payable – Dividend | 76,569.46 | - | - | |||||||||
| Current loans | - | 31,993.11 | 24,198.75 | |||||||||
| Non-current loans | 32,020.70 | - | - | |||||||||
The remuneration of the Board of Management and Director
| Year 2020 | Year 2019 | |||||||
| USD | USD | |||||||
| Income | 62,269.53 | 57,946.14 | ||||||
| 62,269.53 | 57,946.14 | |||||||
| 4.2 | Significant transactions with related parties during the year |
The transactions with related parties are as follows:
| Related parties | Transaction | Year 2020 | Year 2019 | |||||||
| USD | USD | |||||||||
| Green Trident Logistics (Hangzhou) Ltd, | Providing services | 57.34 | 153,058.08 | |||||||
| Paying on behalf | - | 441.23 | ||||||||
| PT. Unique Logistics International Indonesia | Providing services | - | 111,874.52 | |||||||
| Purchasing services | 73.59 | 176.04 | ||||||||
| Shenzhen Unique Logistics International Company Limited | Purchasing services | 11,795.48 | 13,696.88 | |||||||
| Providing services | 1,353.32 | 1,739.00 | ||||||||
| TGF Unique Limited | Providing services | - | 1,739.00 | |||||||
| Purchasing services | 2,646.58 | 2,192.94 | ||||||||
| ULI (North & East China) Co., Ltd. | Providing services | 5,565.88 | 7,881.71 | |||||||
| Purchasing services | 17,475.91 | 2,331.33 | ||||||||
| ULI International Company Limited | Providing services | 994.59 | 11,865.07 | |||||||
| Purchasing services | 55.94 | 104.37 | ||||||||
| Paying on behalf | 106,074.93 | - | ||||||||
| Unique Freight Solutions (Thailand) Co., Ltd. | Purchasing services | 1,539.53 | 607.66 | |||||||
| Providing services | - | 0.96 | ||||||||
| Unique International Logistics (M) Sdn. Bhd. | Providing services | 6,783.82 | 16,061.94 | |||||||
| Purchasing services | 3,319.12 | 4,564.14 | ||||||||
| Paying on behalf | 180.45 | - | ||||||||
| Unique Logistics (Korea) Co., Ltd. | Providing services | 44,427.33 | 48,112.35 | |||||||
| Purchasing services | 3,423.46 | 6,642.49 | ||||||||
| Unique Logistics Holdings Limited | Purchasing services | 83,441.35 | 19,528.69 | |||||||
| Providing services | - | 18.10 | ||||||||
| Other paying | 47,086.50 | 61,528.45 | ||||||||
| Dividend | 232,901.93 | 48,141.07 | ||||||||
| Unique Logistics International (ATL), LLC | Providing services | 14,303.56 | 54,613.15 | |||||||
| 15 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
| Related parties | Transaction | Year 2020 | Year 2019 | |||||||
| USD | USD | |||||||||
| Unique Logistics International (BOS), Inc. | Providing services | 24,003.09 | 129,560.40 | |||||||
| Purchasing services | 1,054.35 | 8,943.96 | ||||||||
| Unique Logistics International (H.K) Limited | Providing services | 4,101.53 | 2,519.26 | |||||||
| Purchasing services | 24,053.66 | 1,500.49 | ||||||||
| Receiving on behalf | 13,888,938.09 | 4,832,957.77 | ||||||||
| Paying on behalf | 15,375,733.49 | 4,657,546.06 | ||||||||
| Unique Logistics International (India) Private Limited | Providing services | 7,889.03 | 30,173.78 | |||||||
| Purchasing services | 15,377.46 | 20.01 | ||||||||
| Unique Logistics International (LAX) Inc. | Providing services | 9,517.58 | 30,794.73 | |||||||
| Purchasing services | 5,463.01 | 6,367.56 | ||||||||
| Unique Logistics International (NYC), LLC | Providing services | 21,404,823.36 | 3,407,958.97 | |||||||
| Purchasing services | 2,071,677.27 | 252,326.91 | ||||||||
| Unique Logistics International (Shanghai), Co., Ltd. | Purchasing services | - | 833.07 | |||||||
| Providing services | 64.89 | 49.96 | ||||||||
| Unique Logistics International (SIN) Pte. Ltd. | Purchasing services | 23,806.99 | 5,109.03 | |||||||
| Providing services | 1,136.22 | - | ||||||||
| Unique Logistics International (South China), Limited | Purchasing services | 45.19 | 1,287.02 | |||||||
| Providing services | 81.97 | 74.94 | ||||||||
| Unique Logistics International Philippines Inc. | Providing services | - | 326.95 | |||||||
| ULI (South China) Limited | Providing services | - | 53.31 | |||||||
| Purchasing services | 3,465.07 | 16.90 | ||||||||
| Uniquorn International Logistics Co., Ltd. | Purchasing services | 3,802.52 | - | |||||||
Liability balances with related parties
The balances of receivable/ (payable) with the related parties are as follows:
| Related parties | 31/12/2020 | 31/12/2019 | 01/01/2019 | |||||||||||
| USD | USD | USD | ||||||||||||
| Green Trident Logistics (Hangzhou) Ltd, | Account receivables | 8.99 | - | - | ||||||||||
| PT, Unique Logistics International Indonesia | Account payables | (78.53 | ) | (4.95 | ) | (5.00 | ) | |||||||
| Shenzhen Unique Logistics International Company Limited | Account payables | (977.10 | ) | (2,800.83 | ) | (50.40 | ) | |||||||
| TGF Unique Limited | Account payables | (2,646.12 | ) | (916.65 | ) | - | ||||||||
| Account receivables | - | - | 25,863.88 | |||||||||||
| ULI (North & East China) Company Limited | Account payables | (8,855.20 | ) | (359.97 | ) | - | ||||||||
| Account receivables | 2,608.14 | 572.89 | 3.26 | |||||||||||
| 16 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
| Related parties | 31/12/2020 | 31/12/2019 | 01/01/2019 | |||||||||||
| USD | USD | USD | ||||||||||||
| ULI (South China) Limited | Account payables | (360.70 | ) | - | (21.50 | ) | ||||||||
| ULI International Company Limited | Account receivables | 6.23 | 2,226.32 | 4.08 | ||||||||||
| Account payables | (5.01 | ) | - | - | ||||||||||
| Unique International Logistics (M) Sdn. Bhd. | Account payables | (626.79 | ) | (125.96 | ) | (289.33 | ) | |||||||
| Account receivables | 113.57 | 1,979.83 | 379.82 | |||||||||||
| Unique Logistics (Korea) Co., Ltd. | Account receivables | 7,391.92 | 4,730.72 | 3,141.36 | ||||||||||
| Account payables | (118.99 | ) | - | (140.00 | ) | |||||||||
| Unique Logistics Holdings Limited | Account receivables | - | 1,515.97 | - | ||||||||||
| Account payables | (34,881.16 | ) | (1,431.13 | ) | (1,357.13 | ) | ||||||||
| Other short-term payables | (273,127.89 | ) | - | (88,520.19 | ) | |||||||||
| Short-term loans | - | (67,985.36 | ) | (75,000.00 | ) | |||||||||
| Long-term loans | (68,043.99 | ) | - | - | ||||||||||
| Unique Logistics International (ATL), LLC | Account receivables | - | 6,284.63 | 3,054.82 | ||||||||||
| Unique Logistics International (BOS), Inc. | Account receivables | - | 36,584.95 | 8,787.85 | ||||||||||
| - | - | (452.07 | ) | |||||||||||
| Unique Logistics International (H.K) Limited | Other short-term payables | (647,881.28 | ) | - | - | |||||||||
| Account receivables | 408.18 | 176.27 | 584.83 | |||||||||||
| Other receivables | - | 849,007.78 | 721,598.55 | |||||||||||
| Account payables | (22,781.27 | ) | (1,850.25 | ) | - | |||||||||
| Unique Logistics International (India) Private Limited | Account receivables | 1,324.82 | 1,644.66 | 3,116.20 | ||||||||||
| Account payables | (44.06 | ) | - | - | ||||||||||
| Unique Logistics International (LAX) Inc. | Account receivables | - | 1,351.73 | 70,988.34 | ||||||||||
| Account payables | - | - | (15,102.50 | ) | ||||||||||
| Unique Logistics International (NYC), LLC | Account receivables | 7,051,675.12 | 860,729.46 | 747,136.40 | ||||||||||
| Account payables | (2,336.03 | ) | - | (6,864.55 | ) | |||||||||
| Unique Logistics International (SIN) Pte. Ltd. | Account receivables | 258.68 | - | - | ||||||||||
| Account payables | (7,627.24 | ) | (1,089.20 | ) | - | |||||||||
| Unique Logistics International (South China) Limited | Account payables | (5.02 | ) | (29.99 | ) | - | ||||||||
| Unique Logistics Intl (Shanghai) Co., Ltd. | Account receivables | - | 50.25 | - | ||||||||||
| Uniquorn International Logistics Co., Ltd. | Account payables | (1,148.65 | ) | - | - | |||||||||
| Unique Freight Solutions (Thailand) Co., Ltd. | Account payables | - | - | (33.00 | ) | |||||||||
| 17 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTE TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
| 4.3 | Other information |
Unique Logistics International (Vietnam) Co., Ltd. has prepared other financial statements for the purpose of its tax finalization for the year ended 31 December 2020 in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and statutory requirement relevant to preparation and presentation of the financial statements.
Unique Logistics International (Vietnam) Co., Ltd, has prepared other financial statements for the purpose of internal management for the financial year ended 31 December 2020 in accordance with Vietnamese Accounting Standards and Vietnamese Accounting System relating to preparation and presentation of the financial statements dated 09 March 2021
| /s/ LE THI NGOC AI | /s/ LE THI NGOC AI | /s/ TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 15 August 2021 |
| 18 |
UNIQUE LOGISTICS INTERNATIONAL
(VIETNAM) CO., LTD.
Audited financial statements
for the year ended 31 December 2020
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
CONTENTS
| Page(s) | |
| REPORT OF DIRECTOR | 1 |
| INDEPENDENT AUDITORS’ REPORT | 3 |
| AUDITED FINANCIAL STATEMENTS | |
| Balance sheet | 5 |
| Income statement | 8 |
| Cash flow statements | 9 |
| Notes to the financial statements | 10 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No. 181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
Director of Unique Logistics International (Vietnam) Co., Ltd. (“The Company”) has the pleasure in presenting this report and the Company’s audited financial statements for the year ended 31 December 2020.
| 1. | General information |
Unique Logistics International (Vietnam) Co., Ltd. is limited liability company with two or more members incorporated in Vietnam pursuant to the Business Registration Certificate No, 0310403753 on 11 October 2010 and the next amendments with the latest amendments registered on the 4th amendment issued on 23 July 2020 issued by the Planning and investment Department of Ho Chi Minh City regarding the changes of owners’ equity.
Operating duration of the Company is 10 years since 11 October 2010
The Company’s head office
| - | Address : No,181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City | |
| - | Telephone : 028 3822 2352 | |
| - | Fax : 028 3829 5440 |
The Company has a branch in Hanoi operated according to the first Registration Certificate No, 0310403753-001 on 24 June 2011 and the next amendments with the latest amendments registered on the fifth amendment on 03 August 2020 issued by the Planning and investment Department of Hanoi City.
The branch office is located at Floor 5, Han Viet Building, 203 Minh Khai Street, Minh Khai Ward, Hai Ba Trung District, Ha Noi City.
According to the first Business Registration Certificate dated 11 October 2010, the principal activities of the Company are to provide forwarding services
In 2020, the main activities of the Company are to provide forwarding services.
| 2. | The member of Member Council and Director |
Members of Member Council and Director during the financial year and at the date of this report are:
Member Council
| Full name | Nationality | Position | |||
| Mr, Lee, Patrick Man Bun | Canadian |
Chairman | |||
| Mr, Tran Duy Hoa | Vietnamese |
Member |
| Director | |||
| Full name | Position | ||
| Mr, Tran Duy Hoa | Director |
Legal representative
The legal representative of the Company during the financial year and at the date of this report is
| Mr, Tran Duy Hoa | Director |
| 3. | The Company’s financial position and operating results |
The Company’s financial position as at 31 December 2020 and its operating results for the year then ended are reflected in accompanying financial statements.
| 1 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
REPORT OF DIRECTOR
| 4. | Events since the balance sheet date |
There have been no significant events occurring after the balance sheet date which would require adjustments or disclosures to be made in the financial statements.
| 5. | Auditors |
AFC Vietnam Auditing Company Limited has been appointed to perform the audit for the year ended 31 December 2020.
| 6. | Director’s statement of responsibility in respect of the financial statements |
Director is responsible for the financial statements for the year ended 31 December 2020 which give a true and fair view of the state of affair of the Company and of its results and cash flows for the year then ended. In preparing these financial statements, Director is required to:
| - | Select suitable accounting policies and then apply them consistently; | |
| - | Make judgments and estimates that are reasonable and prudent; | |
| - | State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; | |
| - | Prepare the financial statements on the going concern basic unless it is inappropriate to presume that the Company will continue in business; and | |
| - | Design, implement and maintain the Company’s internal control for prevention and detection of fraud and error, |
Director is responsible for ensuring that the proper accounting records are kept, which disclose, with reasonable accuracy at any time, the financial position of the Company and to ensure that the accounting records comply with the applied accounting system. It is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Director confirmed that the Company has complied with the above requirements in preparing the financial statements.
| 7. | Publication of the financial statements |
Director does hereby publish that the accompanying financial statements which give a true and fair view of the financial position of the Company as at 31 December 2020 and the results of its operations and cash flows of the Company for the year then ended in accordance with the Vietnamese Accounting Standards, Vietnamese Accounting System and the statutory requirement relevant to preparation and presentation of the financial statements.
| /s/ TRAN DUY HOA | |
| TRAN DUY HOA | |
| Director | |
| Ho Chi Minh City, 09 March 2021 |
| 2 |
| To: | The members of Member Council and Director |
| Unique Logistics International (Vietnam) Co., Ltd. |
We have audited the accompanying financial statements of Unique Logistics International (Vietnam) Co., Ltd. prepared on 09 March 2021 and set out from pages from 5 to 27, which comprise the balance sheet as at 31 December 2020, and the income statement, cash flow statement for the year then ended and notes to the financial statements thereto.
Director’s Responsibility for the Financial Statements
Director is responsible for the preparation and fair presentation of these financial statements in accordance with the Vietnamese Accounting Standards and Vietnamese Accounting System and comply with relevant statutory requirements to preparation and presentation of 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit, We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Director, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for audit opinion.
Auditor’s opinion
In our opinion, the accompanying financial statements give a true and fair view, in all material respects, of the financial position of Unique Logistics International (Vietnam) Co., Ltd. as at 31 December 2020 and of the results of its operations and its cash flows for the year then ended in accordance with the Vietnamese Accounting Standards and Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of the financial statements.
Ho Chi Minh City Head Office ● Tel: +84 28 2220 0237 ● Fax: +84 28 2220 0265 ● Email: pkf.afchcm@pkf.afcvietnam.vn
2/F Indochina Park Tower ● No. 4 Nguyen Dinh Chieu Street ● Dakao Ward ● District 1 ● Ho Chi Minh City ● Vietnam ● Website: www.pkf.afcvietnam.vn
PKF - AFC Vietnam Auditing Co., Ltd. is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.
| 3 |
INDEPENDENT AUDITORS’ REPORT
(Cont.)
Limitation
Without qualifying our above opinion, we would like to note that the financial statements are prepared for the purpose of internal management of Unique Logistics International (Vietnam) Co., Ltd. Therefore, this report may not be appropriate for any other purpose. Our audit report is only for Unique Logistics International (Vietnam) Co., Ltd. and its partners. It is not available to any other parties than Unique Logistics International (Vietnam) Co., Ltd.
Other matters
Unique Logistics International (Vietnam) Co., Ltd, has prepared other financial statements for the purpose of its tax finalization for the fiscal year-ended 31 December 2020 in accordance with Vietnamese Accounting Standards and Vietnamese Accounting System relating to preparation and presentation of the financial statements. These financial statements have been audited by another Auditor
| /s/ DANG THI MY VAN | /s/ NGUYEN NGOC ANH TRUC | |
| DANG THI MY VAN | NGUYEN NGOC ANH TRUC | |
| General Director | Auditor | |
| Audit Practicing Registration Certificate | Audit Practicing Registration Certificate | |
| No, 0173-2018-009-1 | No, 5517-2021-009-1 | |
| AFC VIETNAM AUDITING COMPANY LIMITED | ||
| Ho Chi Minh City, 09 March 2021 |
| 4 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
181 Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
As at 31 December 2020
| Code | Note | 31/12/2020
VND | 01/01/2020
VND | ||||||||||||
| ASSETS | |||||||||||||||
| CURRENT ASSETS | 100 | 187,550,634,267 | 52,871,845,398 | ||||||||||||
| Cash and cash equivalents | 110 | 5.1 | 11,882,122,081 | 7,531,456,662 | |||||||||||
| Cash | 111 | 11,882,122,081 | 7,531,456,662 | ||||||||||||
| Cash equivalents | 112 | - | - | ||||||||||||
| Short-term investments | 120 | - | - | ||||||||||||
| Short-term receivables | 130 | 175,376,222,424 | 45,204,605,683 | ||||||||||||
| Short-term trade receivables | 131 | 5.2 | 175,375,524,324 | 25,572,725,939 | |||||||||||
| Short-term advances to supplies | 132 | 698,100 | - | ||||||||||||
| Short-term borrowings receivables | 135 | - | - | ||||||||||||
| Other short-term receivables | 136 | 5.3.1 | - | 19,631,879,744 | |||||||||||
| Inventories | 140 | - | - | ||||||||||||
| Other current assets | 150 | 292,289,762 | 135,783,053 | ||||||||||||
| Short-term prepaid expenses | 151 | 5.4.1 | 263,766,461 | 135,783,053 | |||||||||||
| Value added tax deductibles | 152 | 28,523,301 | - | ||||||||||||
| Taxes and other receivable from State | 153 | - | - | ||||||||||||
| Other current assets | 155 | - | - | ||||||||||||
| ASSETS | |||||||||||||||
| NON-CURRENT ASSETS | 200 | 1,135,171,349 | 445,473,681 | ||||||||||||
| Long-term receivables | 210 | 841,062,250 | 291,254,250 | ||||||||||||
| Long-term trade receivables | 211 | - | - | ||||||||||||
| Long-term advances to supplies | 212 | - | - | ||||||||||||
| Other long-term receivables | 216 | 5.3.2 | 841,062,250 | 291,254,250 | |||||||||||
| Provision for doubtful LT receivables | 219 | - | - | ||||||||||||
| Fixed assets | 220 | - | - | ||||||||||||
| Tangible fixed assets | 221 | - | - | ||||||||||||
| Finance leasehold assets | 224 | - | - | ||||||||||||
| Intangible fixed assets | 227 | - | - | ||||||||||||
| Cost | 228 | 5.5 | 136,500,000 | 136,500,000 | |||||||||||
| Accumulated amortisation | 229 | (136,500,000 | ) | (136,500,000 | ) | ||||||||||
| Investment Property | 230 | - | - | ||||||||||||
| Long-term assets in progress | 240 | - | - | ||||||||||||
| Long-term financial investments | 250 | - | - | ||||||||||||
| Other long-term assets | 260 | 294,109,099 | 154,219,431 | ||||||||||||
| Long-term prepaid expenses | 261 | 5.4.2 | 294,109,099 | 154,219,431 | |||||||||||
| Long-term tools, supplies and spare parts | 263 | - | - | ||||||||||||
| Other long-term assets | 268 | - | - | ||||||||||||
| TOTAL ASSETS | 270 | 188,685,805,616 | 53,317,319,079 | ||||||||||||
| 5 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
181 Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
BALANCE SHEET
As at 31 December 2020
| Code | Note | 31/12/2020
VND | 01/01/2020
VND | ||||||||||||
| RESOURCES | |||||||||||||||
|
LIABILITIES | 300 | 139,488,584,515 | 23,038,245,825 | ||||||||||||
| Current liabilities | 310 | 137,110,568,338 | 23,036,245,825 | ||||||||||||
| Short-term trade payables | 311 | 5.6 | 65,011,263,868 | 12,654,723,019 | |||||||||||
| Short-term advance from customers | 312 | 70,318,986 | - | ||||||||||||
| Statutory obligations | 313 | 5.7 | 14,472,032,927 | 6,474,552,089 | |||||||||||
| Payable to employees | 314 | 5.8 | 5,159,779,101 | 1,158,612,435 | |||||||||||
| Short-term accrued expenses | 315 | 5.9.1 | 2,286,040,604 | 425,858,282 | |||||||||||
| Short-term unrealised revenues | 318 | - | - | ||||||||||||
| Other short-term payables | 319 | 5.10 | 23,732,869,307 | - | |||||||||||
| Short-term loan and finance lease | 320 | 5.11.1 | 26,378,263,545 | 2,322,500,000 | |||||||||||
| Short-term provision | 321 | - | - | ||||||||||||
| Government bonds trading | 324 | - | - | ||||||||||||
| Long-term liabilities | 330 | 2,378,016,177 | 2,000,000 | ||||||||||||
| Long-term trade payables | 331 | - | - | ||||||||||||
| Long-term advance from customers | 332 | - | - | ||||||||||||
| Long-term accrued expenses | 333 | 5.9.2 | 56,016,177 | - | |||||||||||
| Long-term internal payables in relation to | 334 | - | - | ||||||||||||
| Long-term internal payables | 335 | - | - | ||||||||||||
| Long-term unearned revenues | 336 | - | - | ||||||||||||
| Other long-term liabilities | 337 | 2,000,000 | 2,000,000 | ||||||||||||
| Long-term loans and finance lease | 338 | 5.11.2 | 2,320,000,000 | - | |||||||||||
| Convertible bonds | 339 | - | - | ||||||||||||
| Preferred shares | 340 | - | - | ||||||||||||
| Deferred tax liabilities | 341 | - | - | ||||||||||||
| Long-term provisions | 342 | - | - | ||||||||||||
| Scientific and technological development | 343 | - | - | ||||||||||||
| 6 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
181 Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
BALANCE SHEET
As at 31 December 2020
| Code | Note | 31/12 /2020 VND | 01/01/2020 VND | ||||||||||
| RESOURCES | |||||||||||||
| OWNER’S EQUITY | 400 | 49,197,221,101 | 30,279,073,254 | ||||||||||
| Capital | 410 | 5.12 | 49,197,221,101 | 30,279,073,254 | |||||||||
| Owners’ invested equity | 411 | 3,320,000,000 | 3,320,000,000 | ||||||||||
| Shares with voting rights | 411a | 3,320,000,000 | 3,320,000,000 | ||||||||||
| Preference shares | 411b | - | - | ||||||||||
| Surplus of stock capital | 412 | - | - | ||||||||||
| Convertible bonds option | 413 | - | - | ||||||||||
| Other owners’ capital | 414 | - | - | ||||||||||
| Treasury shares | 415 | - | - | ||||||||||
| Asset revaluation reserve | 416 | - | - | ||||||||||
| Foreign exchange differences reserve | 417 | - | - | ||||||||||
| Investment and development fund | 418 | - | - | ||||||||||
| Enterprise re-organisation support fund | 419 | - | - | ||||||||||
| Other funds belonging to owners’ equity | 420 | - | - | ||||||||||
| Retained earnings | 421 | 45,877,221,101 | 26,959,073,254 | ||||||||||
| Accumulated retained earnings of previous year | 421a | 9,535,589,533 | 17,423,483,720 | ||||||||||
| Retained earnings of this year | 421b | 36,341,631,568 | 9,535,589,534 | ||||||||||
| Fund for capital expenditure | 422 | - | - | ||||||||||
| Other capital, funds | 430 | - | - | ||||||||||
| Subsidized funds | 431 | - | - | ||||||||||
| Fund for fixed assets in use | 432 | - | - | ||||||||||
| TOTAL RESOURCES | 440 | 188,685,805,616 | 53,317,319,079 | ||||||||||
| /s/ LE THI NGOC AI | /s/ LE THI NGOC AI | /s/ TRAN DUY HOA | ||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 09 March 2021 |
| 7 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
181 Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
For the year ended 31 December 2020
| Code | Note | 2020 VND | 2019 VND | |||||||||||
Gross sales of merchandise and service | 01 | 715,336,453,476 | 208,356,267,493 | |||||||||||
| Less
deduction | 02 | - | - | |||||||||||
| Net sales | 10 | 6.1 | 715,336,453,476 | 208,356,267,493 | ||||||||||
| Cost of sales | 11 | 6.2 | 641,856,548,634 | 180,152,286,155 | ||||||||||
| Gross profit/(loss) | 20 | 73,479,904,842 | 28,203,981,338 | |||||||||||
| Financial income | 21 | 6.3 | 431,539,419 | 232,293,764 | ||||||||||
| Financial expenses | 22 | 6.4 | 5,177,932,322 | 1,057,974,409 | ||||||||||
| In which : Interest expenses | 23 | 700,477,594 | - | |||||||||||
| Selling expenses | 24 | 6.5 | 6,875,148,195 | 3,045,302,650 | ||||||||||
| General and administrative expenses | 25 | 6.6 | 16,387,413,621 | 13,068,415,617 | ||||||||||
| Operating profit/(loss) | 30 | 45,470,950,123 | 11,264,582,426 | |||||||||||
| Other income | 31 | 6.7 | 149,726,799 | 700,598,827 | ||||||||||
| Other expenses | 32 | 54,315,015 | 45,694,335 | |||||||||||
| Other profit/(loss) | 40 | 95,411,784 | 654,904,492 | |||||||||||
| Profit/(loss) before tax | 50 | 45,566,361,907 | 11,919,486,918 | |||||||||||
| Current corporate income tax expense | 51 | 6.8 | 9,224,730,339 | 2,383,897,384 | ||||||||||
| Deferred corporate income tax expense | 52 | - | - | |||||||||||
| Net profit/(loss) after tax | 60 | 36,341,631,568 | 9,535,589,534 | |||||||||||
| /s/ LE THI NGOC AI | /s/ LE THI NGOC AI | /s/ TRAN DUY HOA | ||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 09 March 2021 |
| 8 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
181 Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
(Indirect method)
For the year ended 31 December 2020
| Code | 2020 VND | 2019 VND | |||||||||
| CASH FLOW FROM OPERATING ACTIVITIES | |||||||||||
| Net profit before tax | 01 | 45,566,361,907 | 11,919,486,918 | ||||||||
| Adjustments for: | |||||||||||
| Depreciation and amortisation | 02 | - | - | ||||||||
| Provisions | 03 | - | - | ||||||||
| (Gains)/losses from foreign exchange difference | |||||||||||
| on revaluation of monetary items | 04 | 681,623,602 | 469,809,837 | ||||||||
| (Profits)/losses from investing activities | 05 | (7,294,907 | ) | (4,467,676 | ) | ||||||
| Interest expense | 06 | 700,477,594 | - | ||||||||
| Operating income before changes in working capital | 08 | 46,941,168,196 | 12,384,829,079 | ||||||||
| (lncrease)/decrease in receivables | 09 | (132,444,974,353 | ) | (4,536,499,607 | ) | ||||||
| (lncrease)/decrease in inventories | 10 | - | - | ||||||||
| lncrease/(decrease) in payables | 11 | 75,307,933,751 | (1,085,707,906 | ) | |||||||
| (lncrease)/decrease in prepaid expenses | 12 | (267,873,076 | ) | (71,609,794 | ) | ||||||
| Interest paid | 14 | (595,863,733 | ) | (221,235,171 | ) | ||||||
| Corporate income tax paid | 15 | (1,041,312,544 | ) | (1,496,280,404 | ) | ||||||
| Other cash inflow from operating activities | 16 | - | - | ||||||||
| Other cash outflow from operating activities | 17 | - | - | ||||||||
| Net cash flow from operating activities | 20 | (12,100,921,759 | ) | 4,973,496,197 | |||||||
| CASH FLOW FROM INVESTING ACTIVITIES | |||||||||||
| Purchase of fixed assets and other long term assets | 21 | - | - | ||||||||
| Interest and dividends received | 27 | 7,294,907 | 4,467,676 | ||||||||
| Net cash flow from investing activities | 30 | 7,294,907 | 4,467,676 | ||||||||
| CASH FLOW FROM FINANCIAL ACTIVITIES | |||||||||||
| Proceeds from capital contribution | 31 | - | - | ||||||||
| Payment of capital to owners | 32 | - | - | ||||||||
| Proceeds from borrowings | 33 | 42,908,623,023 | 23,135,701,378 | ||||||||
| Repayments of borrowings | 34 | (16,530,359,478 | ) | (23,137,031,378 | ) | ||||||
| Dividends paid | 36 | (11,091,013,631 | ) | - | |||||||
| Net cash flow from financing activities | 40 | 15,287,249,914 | (1,330,000 | ) | |||||||
| Net increase/decrease in cash | 50 | 3,193,623,062 | 4,976,633,873 | ||||||||
| Cash and cash equivalents at beginning of year | 60 | 7,531,456,662 | 2,400,663,567 | ||||||||
| Impact of exchange rate fluctuation | 61 | 1,157,042,357 | 154,159,222 | ||||||||
| Cash and cash equivalents at the end of year | 70 | 11,882,122,081 | 7,531,456,662 | ||||||||
| /s/ LE THI NGOC AI | /s/ LE THI NGOC AI | /s/ TRAN DUY HOA | ||
| LE THI NGOC AI | LE THI NGOC AI | TRAN DUY HOA | ||
| Preparer | Chief Accountant | Director | ||
| Ho Chi Minh City, 09 March 2021 |
| 9 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No. 181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
There notes form an integral part of and should be read in conjunction with the accompanying financial statements,
| 1. | BUSINESS HIGHLIGHT |
| 1.1 | Ownership structure |
Unique Logistics International (Vietnam) Co., Ltd, is limited liability company with two or more members incorporated in Vietnam pursuant to the Business Registration Certificate No. 0310403753 on 11 October 2010 and the next amendments with the latest amendments registered on the 4th amendment issued on 23 July 2020 issued by the Planning and Investment Department of Ho Chi Minh City regarding the changes of owners’ equity.
| 1.2 | Scope of business activities |
The scope of business activities is to provide forwarding services.
| 1.3 | The principal activities |
According to the first Business Registration Certificate dated 11 October 2010, the Company’s principal activities are to provide forwarding services.
In 2020, the main activities of the Company are to provide forwarding services.
| 1.4 | Normal business cycle |
The normal business cycle of the Company is not exceeding 12 months.
| 1.5 | Statement of comparative presentation of information in the financial statements |
The figures are presented in the financial statements for the financial year ended 31 December 2020 compared with the corresponding figures of previous year.
| 1.6 | The number of employees |
The number of the Company’s employees as at 31 December 2020 was 53 (as at 31 December 2019 the number of employees was 37).
| 2. | FINANCIAL YEAR, ACCOUNTING CURRENCY ACCOUNTING |
| 2.1 | Financial year |
The Company’s financial year starts from 01 January and ends at 31 December annual.
| 2.2 | Accounting currency |
The Company maintains its accounting records in Viet Nam Dong (“VND”).
| 3. | ACCOUNTING STANDARDS AND SYSTEM |
| 3.1 | Applicable Accounting Standards and System |
The Company’s financial statements comply with Vietnamese Accounting Standards, Vietnamese Accounting System for enterprises in accordance with Circular 200/2014/TT-BTC on 22 December 2014 issued by the Ministry of Finance regarding the accounting system and the Circulars giving the guidance on preparation and presentation of financial statements.
| 10 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No. 181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
| 3.2 | Statement of compliance with the Vietnamese Accounting Standards and Vietnamese Accounting System |
Director ensures that the Company complied with the Vietnamese Accounting Standards and Vietnamese Accounting System for enterprise in accordance with Circular 200/2014-BTC and the Circulars giving the guidance on the preparation and presentation of financial statements.
| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| 4.1 | Basis of preparation |
The financial statements are prepared on the accrual basis (except for information relating to cash flows).
| 4.2 | Foreign currency transactions |
Transactions in currencies other than VND during the year have been translated into VND at exchange rates ruling at the date of the transaction.
Exchange differences arising from transactions in foreign currencies are recognized in the financial income or financial expense. Exchange differences arising from revaluation of monetary items denominated in foreign currencies at the balance sheet date after offsetting the differences is recognized in the financial income or financial expense.
Monetary assets and liabilities denominated in currencies other than VND are translated into VND at actual rates of exchange ruling at the balance sheet date. The actual rates of exchange applied to retranslate monetary items denominated in foreign currency at reporting date are determined as follows:
| ● | For foreign currency accounts in banks: purchasing foreign exchange rate of the bank where the Company opened the foreign currency account as at 31 December 2020. | |
| ● | For cash and monetary assets: the foreign currency buying rate at the reporting date quoted by HSBC Bank as at 31 December 2020. | |
| ● | For monetary liabilities: the foreign currency selling rate at reporting date quoted by HSBC Bank as at 31 December 2020. |
| 4.3 | Cash and cash equivalents |
Cash comprises cash on hand and cash in banks. Cash equivalents are short-term highly liquid investments with an original maturity of (less than three months since the investment date that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value at reporting date.
| 4.4 | Receivables |
Trade and other receivables are presented at cost less provision for doubtful debts.
The classification of receivables is trade receivables and other receivables, which is complied with the following principles:
| ● | Trade receivables reflect the nature of the receivables arising from commercial transactions with purchase - sale between the Company and an independent purchaser. | |
| ● | Other receivables reflect the nature of the receivables arising from non-commercial transactions, and to be related to the purchase - sale transactions. |
| 11 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No. 181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
The provision for doubtful debts presents the estimated loss due to non-payment arising on receivables that were outstanding at the balance sheet date, Increases and decreases to the provision balance are recognised as general and administration expense in the income statement.
| 4.5 | Long-term prepaid expenses |
Prepaid expenses are used to record expenses actually incurred but they are related to operation of many accounting periods, Prepaid expenses mainly include office equipment and other expenses. They are amortised to the income statement over the period for which the amount are paid or the period in which economic benefit are generated in relation to these expenses less than 3 years.
| 4.6 | Intangible fixed assets |
Intangible fixed assets determined at the initial costs less amortization.
The initial cost of an intangible fixed asset comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Costs relating to intangible assets incurred after initial recognition are recognized to the income statement, except for costs which are related to the specific intangible assets and increase benefits economic from these assets.
When assets are sold or liquidated, their cost and accumulated amortisation are removed from the balance sheet and any gain or loss resulting from their disposal is included in the income statement.
Intangible assets are depreciated on a straight-line over the estimated useful life of these assets as follows:
| Software | 3 years |
| 4.7 | Payables and accruals |
Accounts payable and accrued expenses are recognized for amounts to be paid in the future, which related to receive the goods and services. Accrued expenses are recorded based on reasonable estimates payment.
The classification of liabilities is payable to suppliers, accrued expenses, internal payables and other payables, which complied with the following principles:
| ● | Trade payables reflect the nature of the payables arising from commercial transactions with purchase of goods, services, property between the Company and an independent seller. | |
| ● | Accrued expenses reflect the payables for goods and services received from the seller or provided with the purchaser but have not been paid until having invoices or having insufficient billing records, accounting records, and payables to employees including salary, production costs, and sales must accruals. Any difference between accrued account and actual expenses shall be recognised. | |
| ● | Other payables reflect the nature of the payables of non-commercial, not related to the purchase, sale, rendering of service transactions. |
| 12 |
UNIQUE LOGISTICS INTERNATIONAL (VIETNAM) CO., LTD.
No.181, Dien Bien Phu Street, Da Kao Ward, District 1, Ho Chi Minh City
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
| 4.8 | Revenue and income |
Revenue from rendering of services
The revenue of transaction related to the services is recorded when the result of the transaction can be measured reliably. In case that the services are to be provided in many accounting periods, the determination of sales in each period is done on the basis of the service completion rate as of the balance sheet date. Revenue is recognized upon completion of services provided when satisfy all four conditions:
| ● | Revenue can be measured reliably; | |
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