PVR: Explanation for audit exception

(21/03/2013) PetroVietnam Premier Recreation JSC explained the audit exception as follows:

1. Audit opinion

PVR signed contracts with 107 customers at Van Phu Project, with the receivables from customers of  VND47,687,464,253. However, the company did not issue VAT  bill to record and declare output VAT and declare income tax of 1% temporary payment according to current tax regulations.

-       Current assets of the company was VND378.5 billion less than current liabilities, accumulated loss was VND14 billion and cash flow from operating activities were negative which might affect the operation continuity.

2. Explanation:

-       Making financial statement at the year end, the company issued 107 contracts. The company could not retrieve these contracts, then it did not have basis to record declare for tax payment. However, the company retrieved all mentioned contracts and were making recording and tax declaration according to Decree 71/2010/ND-CP dated 23/06/2010 and Circular no 06/2012/TT-BTC dated 11/01/2012.

-       In 2013, the company would push up debt collection, meanwhile transferring contributed capital in less effective projects to core projects. Then the company would generate capital and profit to meet financial obligations at due date and support operation of the company.

HNX

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