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DZM: Explanation for Financial statement 2013
On 18/03/2014, Dzi An Manufacturing Public
Limited Company explained financial statement 2013
1. The reason for the delay in information
disclosure:
In general, the audited financial statement
of the Company is finished in March and General Meeting of Shareholders is held
in the end of March or beginning of April. However, in 2014 because the
operation results of previous year was not good so the Company held General
Meeting of Shareholders on 28/02/2014 but at that time, the audited financial
statement was only issued one original for General Meeting for Shareholders.
After that one week, the auditor would issue full version and the Company
disclosed on 08/03/2014.
2. The explanation for the note of the
auditor for FS 2013 of the Company: “Not
give exception opinion but we want to note the Statement for FS in Item V.9.2
“Long-term investment” into the subsidiary (Tonle Bet Biomass Power Plant Co.,
Ltd in Cambodia). The subsidiary had signals impacting on the continuous
operation due to delay in payment to due debts. The Plant operated under its
capacity and gained loss for years. In future, the subsidiary only continued
its operation if having financial support from Holding Company (Dzi An
Manufacturing Public Limited Company) and
the extension of debts from creditors. This note showed uncertain factor led to
one remarkable question on the continuous operation of the subsidiary”.
BOD and Annual General Meeting of
Shareholders 2014 evaluated the investment into Biomass Power Plant and showed
the mistakes on technology and long-term financial strategy. Specifically, the incomplete
technology makes the Plant not operate continuously with highest capacity. At
the same time, the ability about finance and human of the Company is not enough
to overcome this situation. Thus, BOD made decision and submit to General
Meeting of Shareholders for approval as showed in Item 3.
3. The reasons for the loss and measures:
- The loss in the operation result of the
Company in two year was due to the mistake in investment in Biomass Power Plant
in Cambodia.
- Measures:
+ Stop the operation of Biomass Power Plant
in Cambodia, not give additional cost for this project exception for guard
expense.
+ Improve the business and production of Power
generation in two years to get top-rank on the revenue and profit in Vietnam.
The contents need improving include: marketing, new product development, risk
management.
HNX
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