Thuduc House's short-term debts exceeded short-term assets by VND131 billion - Photo: TL
Thu Duc House Development Joint Stock Company (TDH) has just announced to the Securities Commission that it has received decisions from the Ho Chi Minh City Tax Department on enforcing administrative decisions on tax management by withdrawing money from the company's account.
The amount of money that Thuduc House will be forced to pay according to the announcement is more than 91.1 billion VND.
However, TDH's audited semi-annual financial report shows that the company has only over VND7.5 billion in cash, of which over VND7.4 billion is deposited in the bank at the end of June 2024.
The financial report for the second quarter of 2024 also recorded TDH's total assets of more than VND 1,322 billion, but mainly accounts for receivables (both long-term and short-term) of up to VND 922 billion.
Of which, many short-term receivables from customers must be provisioned, some have their payment schedule extended until the end of January 2025.
In addition, the group of short-term receivables includes temporary payments to the Ministry of Public Security - the police investigation agency of more than 365 billion VND.
According to the financial statement explanation, in March 2021, the company received Official Letter No. 1050 from the Ministry of Public Security's Investigation Police Agency requesting to return more than VND 365 billion in value-added tax that had been refunded in the tax refund periods from February 2018 to June 2019 to the investigation agency's temporary account.
TDH has completed the payment of this amount from April 1, 2021 to June 25, 2021 and recorded this paid amount in other short-term receivables.
Regarding this issue, the criminal appeal judgment No. 304 in May 2024 of the Ho Chi Minh City People's Court required the enterprise to refund the Ho Chi Minh City Tax Department more than VND 365 billion.
In addition to receivables, inventories account for more than VND224 billion in TDH's total assets. On the other side of the balance sheet, TDH's liabilities amount to VND980 billion.
By the end of June, this business still had a negative operating cash flow of more than VND 6.68 billion, a significant decrease compared to the -31 billion VND level in the same period.
Auditors have significant doubts about Thuduc House's ability to continue as a going concern
Regarding business performance, the financial report shows that Thuduc House recorded 30 billion VND in revenue, a sharp decrease of 57% compared to the same period last year. The loss after tax was over 33.2 billion VND, higher than the -20 billion VND in the same period.
The auditor emphasized that as of June 30, 2024, Thuduc House had an accumulated loss of more than VND 784 billion. Short-term debts exceeded short-term assets by VND 131 billion.
At the same time, the Ho Chi Minh City Tax Department has issued decisions on enforcement of administrative decisions on tax management by stopping the use of invoices, stopping customs procedures for import and export goods, and enforcement by withdrawing money from accounts.
The independent auditors assess that these events indicate a material uncertainty that may cast significant doubt on Thuduc House's ability to continue as a going concern.
In addition, the auditor also noted that the board of directors of Thuduc House decided not to account for the difference in late tax payment of VND 89 billion between the company's book data as of June 30, 2024 and the late payment amount according to the announcement of the Ho Chi Minh City Tax Department...
Source: https://tuoitre.vn/tai-khoan-con-hon-7-ti-thuduc-house-nhan-quyet-dinh-cuong-che-thue-91-ti-202409192029001.htm
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