5.1. Auditor's Qualified Opinion on Receivables and Payables Balances
Qualified Opinion on Receivables Balance:
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 receivable |
131 |
94,821,407,951 |
111,026,152,574 |
| Short-term prepayments to supplies |
132 |
9,817,342,091 |
9,810,545,391 |
| Other short-term receivable |
136 |
9,607,791,950 |
9,662,704,526 |
Qualified Opinion on Payables Balance:
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 |
Regarding the Receivables and Payables, the Company records them in accordance with actual occurrences.
Detailed tracking of debts is conducted for each individual entity, with contracts, invoices, and payment
documents as required by regulations. Confirmation letters are issued fully and promptly in accordance
with audit requirements and have been communicated to Customers, Suppliers, and Subcontractors
for reconciliation and submission back to the auditing entity. The receivables and payables presented in
the Financial Statements accurately reflect the rights and obligations of the Customers, Suppliers, and
Subcontractors. However, due to objective reasons, the Company could not ensure the confirmation letters
were returned within the stipulated timeframe, leading to the aforementioned audit conclusion.
5.2. Auditor's Qualified Opinion on the Inventory account
Qualified Opinion: 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.
Regarding construction projects, all actual costs incurred related to these projects have been fully recorded
by the Company. The acceptance and settlement with the Investor for the recognition of revenue and cost of
goods sold are entirely appropriate. The value for work in progress at the end of the period, presented under
the Inventory account, represents the value of the work completed that the Company is currently working on
with the Investor for acceptance/settlement of these projects.
5.3. Auditor's Qualified Opinion on the Liability with Construction
Joint Stock Company No. 1 (COFICO)
Qualified Opinion: 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.
The Company has entered into Agreement No. 27/COF/2015/P.TM/HCM-GAT-1519 dated October 24, 2016,
between the Company and Construction Joint Stock Company No. 1 (COFICO) - the General Contractor, related
to the joint venture to execute the Gateway Thao Dien residential project, with Son Kim Real Estate Joint
Stock Company as the investor. COFICO is recording a joint venture penalty, which includes late completion
penalties and other costs related to this Project. However, the value of the penalty unilaterally recorded by
COFICO lacks sufficient basis and has not been agreed upon by all parties. Currently, the Company is still
working with COFICO to clearly determine the benefits and obligations of the joint venture parties involved in
the project construction contract mentioned above.
