The "shocks" in the season to publish auditing financial statements

After every season of auditing financial statements, the confidence of investors is shaken by the difference of the data. Source: Internet.

A number of stocks have been removed from the escrow portfolio

According to statistics of the correspondent of Customs, up to now, there are 52 stocks on Hanoi securities trading floor not traded on margin. In addition, TDT and HHT codes were not traded on margin due to the listing time of less than 6 months, the rest of the codes are derived from the 2018 semi-posted financial report. In which there are 26 codes having negative business results after being re-examined, and 24 stocks removed from the list of securities traded on margin which do not have the full approval of the auditing organization for the semi-annual review of the companies’ 2018 financial reports. On Ho Chi Minh Stock Exchange, there were also 15 stocks that were not traded on margin due to the reasons from the semi-annual financial statements.

In particular, there are many terms such as profits converted into losses by ATG (Truong An Joint Stock Company), or increasing losses such as HVG (Hung Vuong Seafood). Even so, the AASC audit firm has declined to comment on the semi-annual financial statements of Petro Vietnam Premier Services Corporation (PVR) for many issues.

Specifically, PVR has not yet made a provision for long-term financial investments in Binh An Investment and Development JSC with a value of 205 billion VND. On the other hand, financial investments, receivable debts and liabilities of PVR as at 30 June 2018 have not been fully collated. The auditor did not obtain sufficient evidence of whether it was necessary to make provision for these items.

Explaining about the above auditor's statement, Mr. Do Duy Dien, PVR's General Director stated that, at the time of preparing the financial statements for 2017 and the first half of 2018, PVR had not collected financial statements of the Binh An Investment and Development Joint Stock Company, because the unit that sent the document and made direct contact with this company and requested the financial statements as the basis for the provision, but Binh An did not provide them for PVR. Therefore, PVR has no basis to make provision for this investment. For financial investments, receivables and payable loans, according to Mr. Dien, these were monitored closely by the company. However, due to having to make the report quickly, the company has not yet sent a letter of confirmation of its many debts. Accordingly, PVR will try to complete and provide the auditors, and the company will recognize the receivables, payables and financial investments are not a correct comparison.

At the same time, VNECO 1 Electricity Construction Joint Stock Company was informed about the fact that in the first 6 months of 2018, the company has paid the remaining salary of 2016, 2017 and the first 6 months of 2018 in excess of the balance of the salary source deducted with the total amount of over 2 billion VND. The overpayment of salaries has been excluded in accordance with the promulgated salary regulations. Commenting on this opinion of the audit, Mr. Doan Tuan Anh, General Director of VNECO 1, said that in recent years, the business situation of the company met difficulties, turnover is not enough to offset the costs. Therefore, the company has to advance wages to employees to ensure minimum living standards and maintain the labor force needed for the times when there is a lot of work.

Suspect the possibility of continuous operation

In the annual financial report of Licogi Corporation, the AASC audit firm emphasized that the total short-term liabilities of Licogi parent company on June 30, 2018, exceeded the short-term assets of 1,337 billion VND. Accumulated loss on the separate balance sheet is approximately 393 billion VND, accounting for 44% of the Corporation's chartered capital. Revenue from sales and services also saw a sharp decrease compared to the same period last year. With the above factors together with a number of issues related to the starting balance for the approval of equitization, the Nam Ga Ha Long urban area project, the Thinh Liet new urban area, and payable loans…, the AASC firm has doubts about the continued viability of the Licogi Corporation.

AASC auditors also commented that as of 30 June 2018, the parent company's Licogi 1 subsidiary did not recognize the deferred payment interest due to late payment of taxes and amounts payable to the State. The amount of fines paid by the auditor is estimated at 1.52 billion VND. If the parent company Licogi recognizes the addition of a late payment penalty, the pre-tax profit on the interim separate income statement and the undistributed profit on the balance sheet will be reduced to 1 billion VND.

The financial statements of Thuan Thao Joint Stock Company record the difference of the series against the company's own financial statements, such as for total assets, short-term receivables, short-term payables, debts, etc. According to Mr. Vo Hoang Chuong, Deputy General Director of Thuan Thao Joint Stock Company, these differences are due to errors in data collection. In the reviewed report, Nam Viet Auditing Company also commented on the fact that the company incurred net after tax loss of over 79 billion VND in the first half of 2018; the accumulated loss to June 30 was over 1,159 billion VND. This loss exceeded equity and at that time short-term liabilities exceeded short-term assets of 1,322 billion VND. Loans and overdue loans have not been recovered with the amount of 453 billion VND; unpaid loans and interest payments of 1,206 billion VND; Taxes and fines for late tax payment of 127 billion VND. With these factors, the auditor also questioned the continuous operation of Thuan Thao Company.

Similarly, the auditor also suspected the continued operation of the Vietnam General Export-Import Co-operation 1 (TH1). Accordingly, the audit highlights the accumulated loss of 292 billion VND as at 30 June 2018. As a result, all bank loans are overdue while overdue loans are unlikely to be recovered. At the same time, in the first six months of 2018, the company had a pretax profit loss 15.3 billion VND, net cash flow in the negative period of 5 billion VND.