3 subsidiaries of Tan Hoang Minh Not eligible to issue bonds</h4 >
According to the conclusion of the investigation, Mr. Do Anh Dung’s son is Do Hoang Viet (Deputy General Director in charge of Finance – accounting) researches plans on how to mobilize capital for businesses.</p >
Do Hoang Viet and other subjects at the Center for Finance and Accounting chose 3 subsidiaries to issue 9 bond lots separately, raising 10,030 billion VND.
3 This subsidiary includes: Viet Star Real Estate Investment Company Limited (charter capital of 1,600 billion VND) Soleil Hotel Services and Investment Joint Stock Company (charter capital of 350 billion VND) Supply Joint Stock Company Winter Power (charter capital 216 6 billion VND).
According to the provisions of Decree 153/2020 of the Government on private bond offering and trading, audit report with acceptance opinion Absolutely no overdue debt is one of the mandatory conditions in the bond issuance dossier.
For Viet Star Company according to the tax declaration report on operating results production business of the company Company at the time of 3 years before the bond issuance was: 2018 loss 10 billion VND, 2019 profit 216 4 billion VND, 2020 loss 1 billion VND (1st declaration profit 32 4 billion VND; The second declaration is a profit of 10,9 billion VND).
For Soleil Company, the tax declaration report shows that in 2018, a loss of 1,6 billion VND, in 2019, a profit of 71,5 billion VND, in 2020, a loss of 135 billion VND VND.
For Winter Palace Company, the tax declaration report shows that in 2018, profit was 9,4 billion VND in 2019, profit was 210,4 billion VND in 2020, profit was 63,8 billion VND in 2021, profit was 1,8 billion VND. billion.
The investigation conclusion shows that with the current situation of business performance results, the existing involvement of subsidiaries and affiliated companies at Viet Star Company and Soleil Company is not eligible for audit reports. financial statements with full approval to issue bonds according to the provisions of Decree 53/2020.
And the Winter Palace Company has financial indicators that doubt its ability to operate. Companies that continuously have overdue debt are not eligible to audit their financial statements with an unqualified opinion.
The way companies “beautify” their financial statements audit
To issue bonds, Do Hoang Viet instructed his subordinates to seek agreements with auditing companies that agreed to give full approval to the report. The financial statements of the 3 subsidiaries ensure the fastest time.
At the end of May and early June 2021, the subjects agreed with Bui Thi Ngoc Lan, Director of Nam Viet Auditing Company, to pay The northern branch audited the 2020 financial statements of Viet Star Company, Soleil Company; Le Van Do, General Director of Hanoi CPA Company to audit the 2020 and 2021 financial statements of the Winter Palace Company.
Tan Hoang Minh’s side raised the issue with Lan and Do agreed to bring issued a full acceptance opinion for the purpose of issuing bonds.
At Nam Viet Auditing Company, northern branch, Bui Thi Ngoc Lan instead of Working with the board of directors of Viet Star Company, Soleil Company directly agreed to an agreement with the object directed by Do Hoang Viet with a value of each contract of 121 million VND (VAT included).
Bui Thi Ngoc Lan was in overall charge of 2 audits that did not fully comply with the provisions of Vietnam Auditing Standards. Many key items have not been inspected or lack audit evidence. Conclusions can still be drawn.
For example, when accessing legal records and accounting records of Viet Star Company and Soleil Company, until the release of the independent audit report, this subject did not discuss and work with the board of directors of the companies to learn about the management situation of business operations accepting customers. issues regarding the content of audit results.
For short-term and long-term financial investment items, this auditing company does not check and compare original documents, but only Based on photocopy transfer contracts. In addition, the auditing company also accepted accounting entries recording “false” revenue from the financial activities of these two companies.
The adjustment of these accounting entries has “beautified” the situation. The financial and production and business activities of Viet Star Company and Soleil Company show that the companies are profitable in 2020.
There are suspicious signs on the financial statements about the ability to operate continuously, but entities that do not work with the board of directors do not request a plan to ensure the ability to operate continuously and also do not state this opinion in the independent audit report.</ p>
At Hanoi CPA Company, instead of signing with the board of directors as prescribed in Vietnamese Accounting Standards, Le Van Do also signed a contract with an object directed by Do Hoang Viet.
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June 2021 Le Van Do is in charge of the overall audit at Winter Palace Company. However, due to the Covid-19 epidemic, it will not be until October 2021 that Hanoi CPA Company will conduct the audit and will be in charge of Nguyen Thi Hai, Deputy General Director.
Le Van Do and 3 other subjects Review the independent audit report with an unqualified opinion but have not collected enough audit evidence. On November 3, 2011, Phan Anh Hung (Deputy Director of Hanoi CPA Company, Saigon branch) signed the Auditor’s signature for this company to issue an independent audit report.
Investigation documents identified Le Van Do as the person who had access to legal records and accounting records, but skipped many inspection and evaluation contents, giving some inaccurate information.
Example For example, 2020 is the first year of audit, but it is determined that the auditor’s opinion on the 2019 financial statements is to fully accept the assessment that there were no unusual transactions at the end of the year, there were no transactions with related parties. The agency has no suspicions about the continuous failure to discuss with the board of directors the company’s management board on the work contents of the audit… contrary to Vietnamese Auditing Standards.
< p>These subjects also did not work with the company regarding the negative cash flow from production and business activities of VND 180,9 billion, did not require the company to have a plan to ensure the ability to operate continuously, did not evaluate the cash flow. Estimated cash capacity to pay bank debts and bonds did not provide an opinion in the independent audit report.
In addition, when reviewing the draft independent audit report for 2020, Ms. Vu Thi Toan, tax consultant of Hanoi CPA Company, mentioned content related to fines for late tax payment shown on the financial statements, but these subjects did not adjust and did not give an opinion on this content. agreed to issue the audit report with full approval.
After obtaining qualified documents, this group of subsidiaries issued 9 bond packages with a total issuance value of 10,030 billions dong. Then Tan Hoang Minh signed a fake contract to buy back a total of 10,029 96 billion VND to become a primary bondholder.
Tan Hoang Minh sold and raised 13,972 5 billion VND. Of which 5,165 3 billion VND was paid by the later buyer to the previous buyer, the remaining 8,807 3 billion VND was appropriated from 6,631 customers.
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