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YBC: Explanation for auditor’s opinion in Financial Statement 2012
YBC:
Explanation for auditor’s opinion in Financial Statement 2012
(02/05/2013)
Yen Bai Cement and Mineral JSC C explained auditor’s opinion in FS 2012 as
follows:
- Auditor’s
opinion:
- The
investment in Yen Binh Cement Joint Stock Company was not taken into account for
setting provisions at the end of year due to at the time of auditing, Yen Binh
company did not complete financial statement.
- At
31/12/2012, accumulated loss of the company was VND32,803,436,662 and current liabilities
exceeded current assets at the amount of VND88,426,679,475. This raised concern
about the continuity in operation of the company.
- Explanation:
- Cement
business was affected by recession of the world economy and especially the
downturn of construction and real estate businesses in Vietnam, cut-down in Government
investment. Output and selling price of cement decreased, while cost of coal
and electricity continually increased, which led to the loss of VND39,692,665,983
in production of cement and clinker in 2012.
- In
acknowledging difficulties of cement business, BoDs and Board of Management
changed direction to invest in stone and stone powder for exporting to India,
Taiwan. In 2012, the company consumed about 103,000 tons of stone powder,
making profit of VND16,563,658,861.
- BIDV,
Agribank adjusted to expand payment terms of long-term liabilities for investment in production line from 2014-2019
and further granted a loan of VND13,000,000,000 of 6 year term payment to
restructure financial situation
Therefore,
the continuity in operation of the company was not affected. HNX
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