Vietnam - Big gap between audited and unaudited profit of enterprises

A series of enterprises posted lower profit or even suffered loss after auditing agency verified the fiscal statements in 2011. Sacombank Securities Joint Stock Co. (SBS) is one of the firms with the big changes in figures in fiscal report.

The broker reported after tax profit of the holding company at negative 610 billion dong in 2011, but after auditing, the figure was up to negative 788 billion dong. The loss of nearly 800 billion dong in 2011 was also reason resulting in SBS share being put into the watch list on Hochiminh Stock Exchange (HoSE) since May 8.

Audited consolidated fiscal statement in 2011 of Vietnam Construction and Export Import Joint Stock Corp (Vinaconex-VCG) also stated that its pre tax profit in 2011 was only 388 billion dong, down 431 billion dong against the figure given by the company, including the reason of allocation for loss from the forex rate difference.

Ba Ria Thermo Power Joint Stock Co (coded BTP) reported loss of 177 billion dong, but after auditing, the company enjoyed a profit of 63 billion dong. Similarly, SMC Trading Investment Joint Stock Co suffered a loss of 6.5 billion dong but after auditing, the company posted a profit if 431 million dong.

Hai Au (Seagull) Shipping Co (SSG) is few enterprises with profit at zero dong after auditing. The auditing agency made additional allocation to the company's costs for loss from forex rate difference after revaluating the long term balance of loan denominated in foreign currency between 2009 and 2010 that was not fully allocated; therefore the company did not have profit in 2011.

Gemadept Co (GMD) changed from a loss of 3.2 billion dong to a profit of 24.3 billion dong after auditing due to reduction in provision fund spending and re-determination of forex rate difference.

According to Nguyen Hoang Hai, secretary general of Vietnam Association of Financial Investors, big gap between audited and unaudited fiscal reports of enterprises in 2011 is rare in previous years. Some firms repeated this situation in many reporting periods due to having no provisions for the sanctions.

Le Dat Chi, head of Financial Investment Faculty of HCM City Economics University, said that the situation of large difference between audited and unaudited fiscal statements is booming strongly in fiscal report 2011 because there are no sanctions for these violations. This made investors lose their trust in the management board when they are not honest in reporting data.

VietBiz24

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