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EID: Explanation for audit notice in 2014 On 25/03/2015, Hanoi Education Development and Investment
Joint Stock Company announced explanation for audit notice as follows: - In 2013, EID bought shares to increase shareholding of EID
in Ha Tay Book and Educational Equipment Joint Stock Company to 40.24% so Ha
Tay Book and Educational Equipment Joint Stock Company became the associated
company of EID and financial statement of Ha Tay Book and Educational Equipment
Joint Stock Company would be consolidated according to method of owners’ equity
with net asset value to be determined as in audited Balance sheet on
31/12/2014. However, in audited financial statement of Ha Tay Book and
Educational Equipment Joint Stock Company, there was opinion on not collecting
enough proofs for audit to determine receivables of up to VND 5.83 billion,
payables of up to VND 2.37 billion and assigned goods for sale of up to VND
4.08 billion on 31/12/2014. Thus, we could not evaluate influence of this issue
to determination of net asset value of the associated company as well as
influence on this issue on Consolidated financial statement. - In financial statement of the Holding Company, there was
total accumulated corporate income tax in 2014 of VND 7.86 billion compared to
corporate income tax in 2013 in audited financial statement of the Holding
Company of VND 4.86 billion, which increased by VND 3.0 billion (61%) and made
profit after tax in 2014 in financial statement of the Holding Company
decreased by VND 5.4 billion compared to audited consolidated financial
statement. - Meanwhile, in consolidated financial statement in 2014,
there was total accumulated corporate income tax in 2014 of VND 8.14 billion
compared to corporate income tax in 2013 in audited financial statement of the
Holding Company of VND 4.99 billion, which increased by VND 3.15 billion (63%)
and made profit after tax in 2014 in consolidated financial statement decreased
by VND 3.02 billion compared to audited consolidated financial statement in
2013.
Reasons: In 2013, EID applied tax rate of 10% for Corporate
income tax according to Decree no. 122/2011/ND-CP dated 27/12/2011. Meanwhile,
tax rate of Corporate income tax in 2014 was applied according to Circular
78/2014/TT-BTC dated 18/06/2014 with tax rate of 22%. Therefore, corporate
income tax in 2014 was higher than that in 2013 and profit after tax in 2014
decreased appropriately. HNX
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