On 24 Apr 2018, Hung Dao Container Joint Stock Company explained Auditor’s qualified opinion as follows:
The Auditor didn’t have the basis to determine the accuracy that Hung Dao Container Joint Stock Company was hoping for to be offset fully the remaining payable debts with Florens according to accounting book: VND 4,516,296,398 because on 31 Dec 2017, two parties didn’t collate to confirm. Because, the remaining fee of the Company was not invoiced, the clearing amount did not match the amount on the confirmation letter. Therefore, the Company didn’t make confirmation letter to avoid disadvantage.
For the provision for decreasing price of the inventory for 01 container arisen of Binh Duong Branch in Apr 2017 (amount of VND 5,083,044,552): this was the inventory with bad quality unsold, therefore, the Company had to move it into making provision.
Auditor couldn’t accurately determine the losses for inventory, fixed assets missed must be recognized in any income statement: actually, the losses for inventory, fixed assets missed when inventorying, the receivables were no longer collectible, payables but not-payables recognized into other income and other expenses haven’t recognized in any previous accounting period. Until the end of the accounting period the Company reviewed, inventoried and recorded in financial statement of fiscal year ended on 31 Dec 2017.
Directions to overcome: The Company was promoting the debt recovery, inventory liquidation to improve financial capacity to stabilize the Company.