|
BAS: Explanation for difference between profit 2011 & 2010
BASA Joint Stock Company gave reasons why the Company’s loss in 2011 was VND8,203,838,475 more than the loss in 2010:
The main reason was the lack of working capital, BASA had to borrow short-term loans with interest rates in 2011 from 18%/year to 21%/year. Therefore, the Company’s financial expense in 2011 increased over 55.11%, or VND4,852,551,635.
Moreover, the increase in material price and fuel price made the Company’s fixed costs rise. The quantity of finished products was very low while production cost was up, so the cost increased while selling price could not rise due to competition. Therefore, BASA had to set up a provision for devaluation in inventories worth VND908,201,142 in 2011. Compared to 2010, BASA’s revenue in 2011 was down near by 62.86%, or VND30,619,076,520.
Besides, BASA in 2011 worked perfunctorily, so BASA’s administrative expense in 2011 rose more than VND1,134,925,497 (17.26%) compared to 2010
hose
|
