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Alarm bell rung over quality of finance reports
Of the 357 companies listing on the Hanoi and HCM City bourses which submitted finance reports before April 20, differences in unaudited and audited reports have been seen in connection to194. Very big gaps in business results occur in more than 10% of the companies’ reports.
The figures have been released by stox.vn.
The biggest gap in business results in unaudited and audited finance reports belongs to Kinh Do family. KDC, a member of Kinh Do Group, for example, has the difference of VND202.978bil in pre-tax profit between its unaudited and audited finance reports. The unaudited finance report shows the profit of VND142.376bil, while the audited finance report showed that it incurred the loss of VND60.602bil.
NKD, a brother of KDC, has a gap of VND38bil. The unaudited report shows that it made VND39bil, but the audited shows a profit of VND1bil only.
Sacombank, one of the biggest joint-stock banks in Vietnam, has a gap of VND133bil.
Two companies in the construction field, Tu Liem Urban Development Company (NTL) and Song Da Urban and Industrial Zone Development Company (SJS), see big gaps in their business results. Audited turnover for NTL was VND64.195bil lower than the unaudited figure (VND371.307bil vs. VND435.502bil. Post-tax profit after auditing was VND61.812bil instead of VND98.729bil.
As for SJS, the 2008 profit of the company fell from VND175.122bil to VND118.884bil after its audit.
According to stox.vn, 47 companies have been found as having a gap between unaudited and audited figures over 50%.
Listed companies have given different explanations about the big gaps in the unaudited and audited figures. Sacombank, for example, has attributed the gap to the different ways of setting aside provisions for unlisted shares applied by the bank and the audited firm. Meanwhile, KDC and NKD said that they previously did not make provisions for long-term financial investments.
A lot of other reasons have been cited to explain the differences in the unaudited and audited figures, including different ways of calculating expenses and receipts and foreign exchange rates.
To date, 37 companies have given explanations about the gaps between unaudited and audited figures. Meanwhile, no explanations have been given by the other companies.
VietNamNet, DTCK
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