Fined for turning losses into profits, company blames old computers and poor accounting skills

Many businesses were fined for reporting false information on financial statements - Illustration photo: QUANG DINH

Phuong Anh International Joint Stock Company (PAS) has just sent a document to the Securities Commission explaining the publication of false information in the financial report for the fourth quarter of 2023.

Specifically, in the 4th quarter 2023 financial report, PAS's after-tax profit was 106 million VND. Meanwhile, in the audited report for 2023, the after-tax profit was negative 288 million VND.

The leader of Phuong Anh International Joint Stock Company admitted that the information in the financial report for the fourth quarter of 2023 was inaccurate.

However, the company said that this was the first time it had committed the error of reporting incorrect information. The cause was due to objective errors in the process of entering data and converting financial report files, leading to incorrect data. Revenue and other figures in the financial report remained unchanged.

Mr. Nguyen Hung Cuong - Chairman of PAS - explained that by 2023, the accounting staff of the accounting department would be constantly changing.

“The new accounting staff are inexperienced and have poor qualifications in the field of listed company accounting in particular and corporate accounting in general. The equipment system of the accounting department in particular is outdated, leading to errors in file processing and inaccurate data jumps,” said Mr. Cuong.

On the website, Phuong Anh International Joint Stock Company introduced itself as being established in 2010, specializing in providing steel and metal products, with headquarters and factory located in Hung Yen.

At the end of 2024, the State Securities Commission issued Decision No. 1441 on administrative sanctions against Phuong Anh International Joint Stock Company.

In addition to violating the law by publishing false information, this company was also fined for not publishing information within the time limit prescribed by law.

Many businesses are fined for 'turning' losses into profits

Recently, the Securities Commission has penalized many enterprises for disclosing false information according to the provisions of Point a, Clause 3, Article 42 of Decree No. 156 of the Government regulating administrative sanctions for violations in the securities sector.

For example, Holding International Joint Stock Company located in An Phu Ward, Thu Duc City, Ho Chi Minh City was also fined VND175 million for disclosing false information in the financial report for the fourth quarter of 2023 and the corporate governance report for 2022 and 2023.

According to the 4th quarter 2023 financial report, Holding's 2023 after-tax profit was -4.4 billion VND. But according to the audited 2023 financial report, the company's after-tax profit was -70 billion VND.

Source: https://tuoitre.vn/bi-phat-vi-ho-bien-lo-thanh-lai-cong-ty-do-loi-do-may-tinh-cu-ke-toan-trinh-do-kem-20250111181910554.htm