TO: SHAREHOLDERS, THE BOARD OF MANAGEMENT AND THE BOARD OF GENERAL
DIRECTORS SEAREFICO CORPORATION
We have audited the accompanying Consolidated Financial Statements of Searefico Corporation prepared
on 03 June 2024, as set out on pages 124 to 129, including: Consolidated Statement of Financial position as
at 31 December 2023, Consolidated Statement of Income, Consolidated Statement of Cash flows and Notes
to the Consolidated Financial statements for the fiscal year then ended.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit.
We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require
that we comply with standards and ethical requirements; plan and perform the audit to obtain reasonable
assurance about whether the Consolidated Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Consolidated Financial Statements. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the Consolidated Financial Statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to
the entity’s preparation and presentation of Consolidated Financial Statements that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
the Board of General Directors, as well as evaluating the overall presentation of the Consolidated Financial
Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
BASIS FOR QUALIFIED OPINION
As of the date of issuance of this audit report, we have not been able to collect sufficiently confirmation letters
on receivable balances as at 31/12/2023 and as at 31/12/2022, as well as not being able to obtain sufficient
and appropriate audit evidence to assess the recoverability of the receivables at the respective times with a
total value of VND 114,246,541,992 and VND 130,499,402,491, respectively. Therefore, we cannot determine
whether it is necessary to adjust the figures related to the provision for doubtful debts, as well as the impact
of the above issue on other related items in the Corporation’s Consolidated Financial Statements for the fiscal
year ended as at 31/12/2023. Details of balances of items are as follows:
|
Code |
31/12/2023
VND |
31/12/2022
VND |
| Short-term trade receivables |
131 |
94,821,407,951 |
111,026,152,574 |
| Short-term prepayments to suppliers |
132 |
9,817,342,091 |
9,810,545,391 |
| Other short-term receivables |
136 |
9,607,791,950 |
9,662,704,526 |
In addition, as of the date of issuance of this audit report, we have not been able to collect sufficiently
confirmation letters on the balance of payable balances as at 31/12/2023 and as at 31/12/2022 with a total
value of VND 117,311,283,790 and VND 120,658,153,676, respectively. Therefore, we cannot determine
whether it is necessary to adjust the impact of the above issue on the relevant items in the Corporation’s
Consolidated Financial Statements for the fiscal year ended as at 31/12/2023. Details of balances of items
are as follows:
|
Code |
31/12/2023
VND |
31/12/2022
VND |
| Short-term trade payables |
311 |
101,017,042,766 |
98,997,315,758 |
| Short-term prepayments from customers |
312 |
7,794,600,089 |
10,480,605,174 |
| Other short-term payables |
319 |
8,499,640,935 |
11,180,232,744 |
Due to being appointed as auditor after the end of the fiscal year 2023, despite performing additional audit
procedures, we were still unable to obtain sufficient and appropriate audit evidence to evaluate the validity
of the audit. The complete and net realizable value of construction works in progress is presented in the item
“Inventory” (Code 141) with the value as at 31/12/2023 and as at 31/12/2022 was VND 100,542,031,326 and
VND 101,065,561,892, respectively. Therefore, we cannot determine whether it is necessary to adjust these
figures and other related indicators in the Corporation’s Consolidated Financial Statements for the fiscal year
ended as at 31/12/2023 or not.
Construction Joint Stock Company No. 01 (COFICO) is recording the joint venture fine as notified to the
Corporation of the amount of VND 22,038,757,467 that the Corporation must pay including late fines and
other costs related to the Gateway Thao Dien project, however the Corporation has not yet recorded it
due to disagreement on the value. As of the date of issuance of this audit report, we have not been able to
obtain sufficient and appropriate audit evidence regarding the uncertainty of the Corporation’s obligations
to COFICO, and therefore cannot determine whether It is necessary to adjust these figures, as well as its
impact on related items on the Corporation’s Consolidated Financial Statements for the fiscal year ended as
at 31/12/2023.
QUALIFIED OPINION
In our opinion, except for the possible effects of the matter described in the “Basis for qualified opinion”
paragraph, the Consolidated Financial Statements give a true and fair view, in all material respects, of the
financial position of Searefico Corporation as at 31 December 2023, its operating results and its cash flows
for the year then ended in accordance with the Vietnamese Accounting Standards, Vietnamese Corporate
Accounting System and the statutory requirements relevant to the preparation and presentation of
Financial Statements.
