PSG: Explanation for audit exception in semi-annual financial statement 2012

Sai Gon Petroleum Construction and Investment JSC announces the explanation for audit exception in semi-annual financial statement 2012 as below:

The main business of Sai Gon Petroleum Construction and Investment JSC is construction and real estate business. Because of the difficulties in overall real estate business so the company has not been able to sign any new contracts in 2012. The main producing business in first 06 months 2012 is projects from the previous years.

For the current uncompleted projects, the capital mobilization from the personal proprietor also meets some difficulties so the cash inflow is not much. The company does not have enough money to pay debts for the credit organizations leads to the increasing credit outstanding and high interest expense which affect to the profit of the company.

The company has planned to restructure the capital to recover the company activities as below:

- To collaborate with the personal proprietor to push up the check and take over process and to balance the account of the uncompleted construction to recall the capital in the shortest time.

- To complete the documents with the Bank to restructure the debt of VND 150 billion from short term to long term.

- To sell the capital and assets of VND 150 billion in other units to pay debt for the Bank to decrease finance expense and supplement working capital.

Explanation for audit exception about the Mother company has not started to inventory and evaluate uncompleted products on 30/06/2012 and Subsidiary company has not been audited:

Sai Gon Petroleum Construction and Investment JSC established Asset Inventory council on 30/06/2012 and start the period inventory of cash, fixed assets, equipments, uncompleted amount in projects, etc. However, because of the time and cost so our company did not ask the Audit company to join in the examination process.

Sai Gon Petroleum Construction and Investment JSC owns 80% of charter capital in Hai Dang Investment JSC. At the moment, Hai Dang Investment JSC is not a public company. However, Hai Dang Investment JSC is still carrying out auditing process once per year after the end of fiscal year.

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