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V11: 2011 Audited Financial Statement Explanation
Construction JSC No.11 (HNX: V11) explains on the auditor’s opinions in 2011 Reviewed Financial Statement as follows:
1. The Company has not compared some payables, receivables items:
At present, Construction JSC No 11 is in the reorganization process according to the directions of Vietnam Construction and Import-Export Joint Stock Corporation (holding company of Construction JSC No 11). Accordingly, the company must calculate inventory of unfinished goods, materials, equipment, vehicle; compare payables, receivables as of 30/06/2011 and report to Vietnam Construction and Import-Export Joint Stock Corporation before 30/08/2011. On the accounting date of Reviewed financial Statement 2011, because the inventory had not been finished, the reference data that Construction JSC No 11 provided Deloitte Vietnam company limited was the most updated results according to the result of internal work between Construction JSC No 11 and Financial Monitoring Committee of Vietnam Construction and Import-Export Joint Stock Corporation
• Reasons for not defining subjects for Other receivables item:
These are interest receivables, compensation for material loss, compensation for board lining loss, insurances receivables, personal income tax receivables. These receivables have been collected for years but not yet been processed then they still remained. Otherwise, some construction teams had not yet compared liabilities with the Company so it was unable to specify these receivables
• Reasons for not defining subjects for Advanced item:
Construction JSC No 11 make an advance to construction teams through 141 account and refund the advance by expenses through collects of these teams. These advance refunds only base on lump-sum price. Every year, to compare liabilities Construction JSC No 11 only focuses on incomings and expenses according to total liabilities with construction teams without comparing items for each project. Thus, it’s possible to compare with closing balance of construction teams on 141 account, not in particular on every project or item of construction teams
These are big matters of Construction JSC No 11 regarding the previous administration. Construction JSC No 11 is in the reorganization process that these matters will be handled when the process is completed
2. Reasons for not settling the payable to seller item of VND218.2 billion
The Company collects expenses of construction team on the account 331 and pay for suppliers by refunding construction team on account 141
As of 31/06/2011, the Company paid for suppliers via construction teams based on assigned and completed items, which led to big balance on the account 331. This balance will be handled when the construction works are completed and construction teams liquidate contracts with the Company
The balance on account 331 on 30/06/2011 is VND218.2 billion. The Company has paid VND65.1 billion accounted to account 141. This amount will be deducted on account 331 when the construction team finishes the work. Thus the balance on account 331 will be VND153.1 billion.
3. Until now, the Company has not built specific estimation on influence of some works in Lang Hoa Lac projects, An Khanh Cemetery, and Nam Trung Yen infrastructure on the business results of the company for the first half of 2011. Reasons: these works are carried out through appointment. During the process, there are changes in prices and policies of the State, which makes these works unsettled. The value of the works depends on the Company, the personal proprietor and the State’s policies, so the Company can only estimate the influence after the final accounts are approved
4. Based on the Financial Statement on 30/06/2011, accumulated loss is VND9,161,244,487. For continual operation, the Company sent letters asking for support from principal shareholders including Vietnam Construction and Import-Export Joint Stock Corporation owning 30.3% of equity, Vinaconex Engineering Construction and Investment JSC owning 20.2% of equity, and Construction JSC No. 3 owning 10.1% of equity and received promises in documents.
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