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SD7: Explanation for audit exception in reviewed semi-annual financial statement 2013 (Holding Company)
On 30/89/2013, Song Da 7
Joint Stock Company explained for audit exception as follows:
1. “The economic value which can be collected in future when accounting
some projects is evaluated by the Management Board is lower than the construction
in progress on 30/06/2013 in estimated amount of 9.4 billion dongs. If this
difference is record into the operation result in the period, the profit of the
Company will decrease an equivalent account”.
This is the construction in
progress at Xuan Phuong Project; Orange Garden Project is being constructed by
the branch of Song Da 7. Because the projects are constructed in many years,
the time for acceptance, settlement lengthen, the price of materials, labors
fluctuates, especially the borrowing interest has increased the cost of the
projects, so on 30/06/2013, the Company temporarily estimated the capital value
collected from these projects may be lower than VND 9.4 billion (expense).
However, if considering all construction in progress of the Company at other
projects, the received value can pay for this expense.
2. “The investment into the subsidiary – Yen Son Furniture Co., Ltd has
not been set up the provision in the financial statement of Holding Company.
The accumulated loss of Yen Son Furniture Co., Ltd on 30/06/2012 is VND 12.07
billion. If the provision for this investment is set up, the operation result
of Holding Company will decrease equivalent amount.”
Regard to the provision
setting for the damage at Yen Son Furniture Co., Ltd on 30/06/2013. Due to at
the time for collecting reports, Holding Company - Song Da 7 Joint Stock
Company has not received the full report of Yen Son Furniture Co., Ltd. On the
other hand, the financial situation and the business results of the subsidiary
has been consolidated in the consolidate financial statement of the Company,
thus, when making financial statement of Holding Company, the Company has not
set up provision for this investment. The provision setting in the financial
statement of Holding Company will be carried out in Quarter III/2013.
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