TLC: Report on audit exception

TLC: Report on audit exception

Thang Long Telecommunications JSC announces the explanation for the reclamation ability of the long term debt of VND 121,882,375,568 which borrowed by the subsidiary company according to the report no. 292/2012/BCSX-AASCN on 14/08/2012 as below:

Until 30/06/2012, Alphanam Mechanical Electric JSC has an accumulated loss of VND 65,130,583,876. Because the main product of the company is no longer effective, the chain production of bronze cable and fiber cable has been postponed to avoid losses. According to the resolution of the Board of Directors, the company is considering asset liquidation, capital restructing,and finding new business. The fixed assets such as houses, equipments of the electric cable factory and fiber cable factory have the value of VND 100,122,364,939 and VND 83,700,756,847 on 30/06/2012 and can be returned to Mother company after being liquidated.

Report of Audit Company - Auditing and Accounting Financial Consultancy Services Company Limited – AASC

We checked the Financial Statement for the accounting period from 01/01/2012 to 30/06/2012 of Thang Long Telecommunications JSC (TLC). In the audit report, we have an attention to the fact that Thang Long Telecommunications JSC (Mother Company) lent Alphanam Mechanical Electric JSC (Subsidiary Company) a long term debt of VND 121,882,375,568 by 30/06/2012 and this debt is hard to reclaim due to the accumulated loss of VND 65,130,583,876 by 30/6/2012. The company have planned to stop investing and liquidating all the equipments, and unprofitable assets of the Mother company and Subsidiary company. The full value depreciated value of unprofitable fixed asset of the Subsidiary company by 30/06/2012 is VND 100,122,364,939 and VND 83,700,750,847. However, at the moment, these assets have not been liquidated and the company is still able to estimate the losses to establish the allowance for those receivables.

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