The Securities Commission continuously fines businesses that 'turn' losses into profits, turning large losses into small losses.

The Securities Commission continuously discovers violations of information disclosure by enterprises. One of the recently common violations is the distortion of business results.

Many businesses were fined when audited reports showed incorrect figures in profits - Photo: QUANG DINH

After audit: Loss to profit

The State Securities Commission has just issued a decision to sanction administrative violations in the securities sector against Vietnam Enterprise Investment and Development Joint Stock Company.

This company is located at Stellar Garden Building, 35 Le Van Thiem, Thanh Xuan Trung Ward, Thanh Xuan District, Hanoi.

With two violations, the total fine that Vietnam Enterprise Investment and Development Joint Stock Company must pay is 215 million VND.

In particular, the enterprise was clearly stated to have disclosed information not on time according to the law with the audited separate and consolidated financial statements for 2023 and the annual report for 2023.

At the same time, this enterprise was also fined for publishing false information in its separate and consolidated financial statements for the fourth quarter of 2023.

According to the separate financial report for the fourth quarter of 2023, the company's after-tax profit in 2023 was more than 54 million VND. However, according to the audited separate financial report for 2023, the after-tax profit was negative 18.9 billion VND.

At the same time, in the consolidated financial report for the fourth quarter of 2023, the company's after-tax profit in 2023 was negative VND 2.57 billion. However, according to the audit report for 2023, the company's after-tax profit was negative VND 27.33 billion.

In addition to paying the fine, the Commission also requested Vietnam Enterprise Investment and Development Joint Stock Company to cancel or correct information for the act of publishing false information according to regulations.

Previously, the Securities Commission also fined Rang Dong Holding Joint Stock Company (RDP) for publishing false information similar to the above enterprise.

Businesses report high profits, but in reality make little profit.

At the same time, the State Securities Commission issued a decision to impose administrative sanctions on Holding International Joint Stock Company located at 51 An Phu Street, Thu Duc City, Ho Chi Minh City.

Accordingly, this enterprise was fined a total of more than 377 million VND. This includes violations due to late information disclosure with the financial report for the second quarter of 2023, the audited financial report for 2023, and the financial report for the second quarter of 2024.

At the same time, Quoc Te Holding was fined for disclosing false information regarding the financial report for the fourth quarter of 2023, the corporate governance report for 2022 and 2023.

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

The Securities Commission also said that in the corporate governance report for 2022 and 2023, the above company announced that there were no transactions between the company and other entities and related persons of the company.

However, in the audited financial statements for 2022 and 2023, the company has sales and service transactions with related parties, International Tourism and Trade Joint Stock Company - a business that shares the same board members, chairman of the board of directors and persons related to the chairman.

In addition, according to the audited financial statements for 2022 and 2023, Quoc Te Holding has transactions with insiders and related parties of insiders. However, these transactions were not approved by the board of directors.

Recently, the inspection and supervision agency under the Securities Commission has continuously discovered cases of information disclosure violations. Accordingly, many companies have been fined quite large amounts, possibly up to billions of dong.

Punishment and remedial measures will have a high deterrent effect on businesses, thereby making the stock market more transparent.

Source: https://tuoitre.vn/uy-ban-chung-khoan-lien-tiep-phat-doanh-nghiep-bien-lo-thanh-lai-lo-nhieu-thanh-lo-it-20241226131800334.htm