PPG: Explanation for audit exception in semi-annual financial statement 2012
Phu Phong Corporation announces the explanation for audit exception in semi-annual financial statement 2012 as below:
- The resolution No. 17/2012/NĐ-CP on 13/03/2012 of the Independent Audit states that : “ The company which the listing organizations, issue organizations, securities organizations hold from more than 20% of voting right must be audited with the annual financial report in the end of the fiscal year”. Because the company holds 30% of the charter capital of the Tien Phong Producing Commercial JSC with the amount of VND 4,800,000,000, the financial statement of Tien Phong Producing Commercial JSC must be audited as stated above.
- By 30/06/2012, the financial statement of Tien Phong Producing Commercial JSC has not been audited. Therefore, auditor defines the net present value of the investment of the company in Tien Phong Producing Commercial JSC bases on the unaudited financial statement of Tien Phong Producing Commercial JSC.
- The report of the AGM 2012 stated that Tien Phong Producing Commercial JSC has stopped production and business activities and going to be bankrupt. However, the company has negotiated and transferred all the share capital of the company in Tien Phong Producing Commercial JSC followed by the transfer contract No. 01/2012/HĐCN on 24/07/2012 with the amount of VND 20 million. The variance between the net present value of the investment in Tien Phong Producing Commercial JSC on 30/06/2012 and the transfer value of the contract has been recorded as loss in investment activities in the financial statement Quarter 3/2012.
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