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VC3: The explanation for the audit notes in the reviewed semi-annual financial statement 2013
On 09/09/2013, Construction JSC No. 3 explained the audit
notes in the reviewed semi-annual financial statement 2013 as follows:
1.1. “Stated in the Statement No. 8 for
consolidated financial statement, the Company is stating the balance of the
other short-term assets as the temporary advance for construction teams. The
payment of this advance depends on the payment with the owners. Therefore, on 30/6/2013,
the Company did not set provision for the temporary advance of the construction
teams.”
The balance of the
other short-term assets is the temporary advance for construction teams to
construct the works which belong to State budget sources. These works have been
accepted and the procedures for the payment are being carried. When
receiving the distribution from State budget sources, these construction teams
will repay the temporary advance. Thus, the Company has not set up the
provision for the temporary advance for construction teams.
1.2. “Stated in the Statement No. 32 for consolidated
financial statement in the period, the Company has temporarily calculated the
profit from the Project 310 Minh Khai to divide for parties in according to No.
135LD/CT3 dated 20/09/2008 signed between the Company with Mai Dong One Member
Co., Ltd and HJC Group Investment - Construction Joint Stock Company. The
estimated profit maybe change according to the final account of parties”
Based on Contract No.
135LD/CT3 dated 20/09/2008 signed between the Company with Mai Dong One Member
Co., Ltd and HJC Group Investment - Construction Joint Stock Company on the
investment into 310 Minh Khai Project– Hanoi. According to this contract, the
parties contribute capital to perform 310 Minh Khai Project. The rate of profit
distribution as follows: Construction JSC No. 3: 45%, Mai Dong One Member Co.,
Ltd: 40%, HJC Group Investment - Construction Joint Stock Company: 15%.
In the first six
months/2013, the Company has temporarily calculated the profit from 310 Minh
Khai Project to divide for parties.
Because 310 Minh Khai
Project is still in progress, the final account has not been made, so the final
profit will be divided for the parties after the final account approved.
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