1. Except-for opinion of auditor

-       We could not collect audit evidences relating to the inventory of cash, inventories, fixed assets and work in process at the end of the Fiscal year 2010 of previous auditor. Besides, we were not invited to witness the inventory of cash, inventories, fixed assets and work in process at the end of the Fiscal year 2011. We carried out alternative auditing methods, but we couldn’t collect necessary audit evidences to prove the existence of value of these items.

-       We sent Confirmation letter to the Company verify receivables and payablebs at opening balance, but at the time of issuing the reports, we did not receive all replies. We carried out alternative auditing methods, but we couldn’t collect appropriate audit evidences for these items.

These matters caused grave impact on financial statement 2011 of Thai Hoa Viet Nam Group JSC. Thus, we gave except-for opinion in the reports.

2. Going concern:

On 31/12/2011, short-term liabilities of Thai Hoa Viet Nam Group JSC was VND122,745,267,123 bigger than current assets, accumulated losses as of 31/12/2011 was VND190,591,661,578. This issue led to the Going Concern of the Company. We have collected commitments of major shareholders committing to continue providing financial resources and credits whenever necessary so that the Company maintains the operation and pay the debts. The General Management Board has planned to ask for loan extension, but as of 10/04/2012, we did not receive official documents from the Banks relating to the loan extension of the company. Thus, Going concern mentioned in the report is necessary.