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TAS: Explanation for audit exception in the FS year 2011
On 10/09/2012, Trang An securities
JSC explained the audit exception in the FS year 2011 as follows:
The
Company received borrowings of investors from credit institutions; interest
expenses incurred was accounted as small on-hehalf payments and receivables
To
enlarge the operation scale, the Company cooperated with credit institutions to
provide resources for securities investors. TAS played a role as the third
party managing assets as securities partly bought by bank borrowings of
investors). However, due to weak management, TAS couldn’t lidiquate customers’
portfolio timely when the market decreased, thus investors couldn’t pay for
borrowings in time. At the request of lenders, TAS received borrowings of
investors and commited to recover debts from investors.
During
the operation, there are many investors open accounts at TAS for margin
trading, borrowings at maturity date are mingled, thus it is hard to clarify
capital recovered and new loans of each investor. The Auditor could not split
these amounts and gave audit exception that TAS used borrowings of investors to
lend back.
Besides,
investors sign borrowing contracts directly with the banks. Thus, the borrowing
entity is the investor, not TAS. So TAS could not account those borrowings and
interest expenses as TAS’s borrowings.
TAS is the intermediary
manager of assets, interest received are considered on-behalf receivables and
cannot be accounted as the Company’s revenues.
Deferred
income tax
According
to the audited financial statement of first 6 months of 2012, loss before tax
of the company as of 30/6/2012 was VND91.6 billion. However, du to tax rules,
if the Company wants to allocate losses to following years, TAS has to classify
and present the Deferred income tax of VND21.7 billion in the Assets. As the
auditor was not certain that the Company would make profits, they made this
comment.
After
the General Meeting of Shareholders, Chair of the Board has pumped capital to
support the Company and the Company has paid some due debts. The Company is
completing some procedures to get foreign customers into Vietnam’s market.
Audit exception relating to
most receivables
Due
to large number of investors, the Company did not collect sufficient data to
prove to the auditor. HNX
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