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DTL: Explanation for business result in H1
Dai Thien Loc Corporation (HoSE: DTL) has explained business result in the first 6 months 2010 as follows:
* After-tax profit in the business result of the first 6 months 2010: VND193,353,250,673
* After-tax profit in the business result of Q1/2010: VND15,495,253,022
* After-tax profit in the business result of Q2/2010: VND59,444,627,126
Reasons:
* Profit from the Dai Thien Loc Iron Co., Ltd. with the amount of VND127,817,926,733 was directly recorded in the part of undistributed after-tax profit of the balance sheet. However, after examining the financial statement of the first 6 months 2010, an auditor suggested to put the amount of money in “sales of financial activities” of the report of business result.
* DTLS issued an invoice of selling the land at the Song Than Industrial Zone No.3 to the Dai Thien Loc Steel Co., Ltd. (100% capital of DTLS). Thus, the additional amount of VND10,872,929,922 was recorded in “other profit” of the business result Q2/2010. However, after examination, an auditor did not record the amount because procedures of selling land were not completed yet.
* On 30/9/2010, an auditor evaluated difference of exchange rate at the end of the term. It increased the item “sales from financial activities” of the business result with the amount of VND6,673,377,638.
* An auditor estimated loan interest payable in June 2010 leading to increase of the item “financial expenses” in the business result with the amount of VND2,588,377,099.
* There were some adjustments of sales and expenses matching with the accounting standard when examining the business result of the first 6 months 2010.
* Explanation for provision of inventory devaluation at 30/6/2010.
The company ensures that inventory cost was less than net value (Net value = selling price of inventory – estimated expenses of completing products and trading them). Therefore, the company did not deduct for provision of inventory devaluation at 30/6/2010.
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