DLR: Explanation for the auditor\u2019s exception in consolidated FS 2013
On 31/03/2014, Dalat Real
Estate JSC explained the auditor’s exception in consolidated FS 2013 as
follows:
The auditor’s exception: “At the time issuing audited report, we have not collected the
confirmation on the balance on 31/12/2014 of the debts related to Dinh Tien
Hoang Project (the project of Bao Loc Real Estate Co., Ltd) consisted of: The
receivables from customers: VND 16,393,555,686; the payables to sellers and
advance payment to sellers: VND 4,473,765,438 and VND 5,025,141,757”
The explanation: Bao Loc Real Estate Co., Ltd
is the subcompany of the Company with 100% of Charter capital. Dinh Tien Hoang
Project was constructed by Bao Loc Real Estate Co., Ltd.
- In 2013, Bao Loc Real Estate
Co., Ltd recorded the construction revenue for each stage. However, the owner
did not the debts because the project was both in construction process and
handing over process.
- The
debts related to the construction teams, due to the fluctuations of borrowing
interest between Bao Loc Real Estate Co., Ltd and construction teams, the final
value of each team. Thus, the construction teams did not signed to confirm the
debts.
- Bao
Loc Real Estate Co., Ltd will take responsibility to balance and confirm the
debts after having handing-over certificate and total account approved by
related parties. HNX
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