(4) assessing enterprise finance, monitoring the operation status of enterprise finance

(1) examining and approving the internal financial management system, financial strategy, financial plan and financial budget of the enterprise

General Rules on Enterprise Finance

(1) supervising the implementation of the rules and regulations concerning enterprise finance, directing the enterprises to set up and perfect the internal financial systems in accordance with the financial relations

(3) setting up and perfecting the enterprise auditing system of annual financial report so as to examine the quality of the annual financial report

They are hereby promulgated and shall enter into force as of January 1, 2007.

(1) studying out enterprise internal financial management rules, financial strategies, financial plans, preparing financial budgets

Chapter II Enterprise Financial Management System

Article 3 The state owned enterprises and state holding enterprises (hereinafter referred to as enterprises) shall determine their internal financial management systems, set up and perfect their financial management systems and control their financial risks.

Article 1 With a view to strengthening the financial management of enterprises, regulating the financial behaviors of the enterprises, protecting the legitimate rights and interests of the enterprises and related parties and boosting the establishment of modern enterprise system, the present General Rules are formulated under the provisions of the related laws and administrative regulations.

Article 68 The competent authorities of finance and their employees shall properly use the financial information of the enterprises they have seized, perform the obligation of confidentiality under law, and may not take advantage of such information to seek interest for themselves or injure the interests of any enterprise.

Article 4 The Ministry of Finance shall be responsible for instituting the rules and regulations on enterprise finance.

(2) instituting the financial policies that facilitate the reform and development of the enterprises, setting up and perfecting the financial fund management systems that conduce to the development of the enterprises

Article 63 An enterprise shall set up a financial pre alarm mechanism, define the alerting standards of financial crises by itself pay more attention to monitoring the adaptation between operational net cash flow and due debts and the adaptation between assets and liabilities of the enterprise communicate the information on the pre alarm of financial crisis in time, and put forward the corresponding solution measures and schemes.

An enterprise group company may determine its internal financial management system by itself.

Article 24 An enterprise shall set up a financial examination system on contract and clarify the operational flow and power limits of examination so as to carry out financial supervision.

(5) preparing and providing enterprise financial report so as to reflect the financial information and the related situation faithfully and

(7) offering necessary assistance and services in accordance with the demands of enterprise financial management.

(2) organizing the implementation of such financial schemes as fund raising, investment, guarantee, donation, reorganization and profit distribution and so on, fulfilling the obligation of debt repayment of the enterprise faithfully

With respect to the financial decision making items under which the interests of any individual investor or operator run afoul of those of the enterprise, the related investor or operator shall withdraw.

Article 69 An enterprise shall accept the financial supervision of the competent authority of finance and the financial auditing of the auditing organ of the state under law.

Article 61 An enterprise may, by considering its operational characteristics, optimize the workflow, set up an information processing system with integrations of finance and business, and gradually realize the once for all handling and real time sharing of the related information of finance and business.

Article 62 An enterprise shall gradually create conditions to plan the resource of the enterprise as a whole, comprehensively integrate and regulate the financial and operation flow, and conduct integrated management and operation of the logistics, capital flow and information flow of the enterprise.

Article 71 An enterprise shall set up and perfect an internal financial supervision system.

The scope will usually be business to business services.

In case an enterprise merges another insolvent enterprise through assuming the liabilities of the latter, the merging party shall set down measures for restructuring, undertake the responsibility of repaying the debts and integrate the financial resources according to the merging plan.

Article 8 An enterprise shall perform such a financial management system as being clear in capital ownership, unambiguous in financial relationship and complying with the requirements of corporate governance structure.

The financial management of an enterprise shall consist such financial behaviors as raising funds rationally, operating assets effectively, controlling the cost, regulating the income distribution and reorganization and liquidation, and strengthening financial supervision and financial information management in accordance with the formulated financial strategy.

The results of evaluation or assessment may be promulgated to the general public in a proper way.

Article 74 In case any enterprise, any person in charge held to be directly responsible or any other person of the enterprise fails to compile or report financial report or other materials under the provisions of Articles 64 and 65 of the present General Rules, the competent authority of finance at or above the county level may impose upon it him a penalty under the Company Law of the People's Republic of China and the Regulation on Enterprise Financial Statements.

As for an overseas investment, an enterprise shall conclude a contract thereon in written form so as to clarify the rights and interests it may enjoy from this investment and to carry out financial supervision.

(5) dispatching or recommending chief financial officers to exclusively funded or holding enterprises under the related provisions.

Article 11 An enterprise shall set up a budget management system of finance to implement all around budgetary management on financial activities such as fund raising, assets operation, cost control, income distribution, reorganization and settlement and so on, by taking cash flow as the core and according to the requirements of financial objectives such as maximizing the enterprise value.

Previous positions include partner, Bugge, Arentz Hansen law firm Director General, and Head of Business and Energy Tax Section, Tax Law Department, Ministry of Finance.

In case an enterprise set up a board of supervisors or has any supervisors, the board of supervisors or the supervisors shall undertake the duties of internal financial supervision under the laws, administrative regulations, the present General Rules and the articles of association of the enterprise.

ISAR noted that an enterprise's environmental performance could affect its financial health and hence its sustainability.

In case the financial treatment of the enterprise does not accord with any provision of any law or administrative regulation on taxation, it shall be adjusted under law in paying taxes.

Article 7 With regard to an enterprise invested by the people's government or any of its departments and organs, its financial relationship shall be affiliated to the financial organ of the same level.

(2) the internal financial management system violates the related laws obviously, administrative regulations and the general rules and regulations on enterprise finance, and rejecting to make corrections as required by the competent authority of finance.

The ad hoc consultative group recognized as fundamentally important that enterprises should disclose their financial and operating results.

The financial departments of all levels (hereinafter referred to as competent authorities of finance collectively) shall enhance guiding, managing and supervising enterprise finance, their principle duties are as follows

(b) Except as specifically provided in the agreement between the applicant and the Enterprise, the Enterprise shall not by reason of its participation be otherwise obligated to provide funds or credits or issue guarantees or otherwise accept any financial liability whatsoever for, or on behalf of, the joint venture arrangement, nor shall the Enterprise be required to subscribe for additional participation so as to maintain its proportionate participation in the joint venture arrangement.

An enterprise's repurchase of the shares under law shall comply with the related conditions and financial treatment measures and be determined by the investors.

Article 9 An enterprise shall set up a decision making system of finance and clarify the decision making rules, procedures, power limits and liabilities and so on.

Previously, these services were available only for business to business operations, mainly tour operators and travel agencies.