With over 7 billion VND remaining in the account, Thuduc House receives a tax enforcement order for 91 billion VND.

Thuduc House's short-term liabilities exceeded its short-term assets by 131 billion VND - Photo: TL

Thuduc House Development Joint Stock Company (TDH) has just informed the Securities Commission that it has received decisions from the Ho Chi Minh City Tax Department regarding the enforcement of administrative decisions on tax management by means of deducting money from the company's account.

The amount of money that Thuduc House will be forced to pay, according to the notice, is over 91.1 billion VND.

However, TDH's audited semi-annual financial report shows that the company only had just over 7.5 billion VND in cash, of which over 7.4 billion VND was deposited in banks at the end of June 2024.

The Q2 2024 financial report also recorded TDH's total assets at over 1,322 billion VND, but this was mainly accounted for by accounts receivable (both long-term and short-term) totaling 922 billion VND.

In particular, many short-term accounts receivable from customers require provisions for bad debts, and some have had their payment deadlines extended until the end of January 2025.

Additionally, the group of short-term receivables includes provisional payments to the Ministry of Public Security - the police investigation agency - totaling over 365 billion VND.

According to the financial statement notes, in March 2021, the company received document No. 1050 from the Investigation Police Department of the Ministry of Public Security requesting that it return over 365 billion VND in value-added tax that had been refunded during the tax refund periods from February 2018 to June 2019 to the investigation agency's temporary holding account.

TDH completed the payment of this amount between April 1, 2021 and June 25, 2021 and recorded the paid amount under other short-term receivables.

Regarding this matter, Criminal Appeal Judgment No. 304 of the Ho Chi Minh City People's Court in May 2024 required the enterprise to repay the Ho Chi Minh City Tax Department more than 365 billion VND.

Besides accounts receivable, inventory accounts for over 224 billion VND of TDH's total assets. On the other side of the balance sheet, TDH's liabilities amount to 980 billion VND.

By the end of June, the company still had a negative cash flow from operations of over 6.68 billion VND, a significant decrease compared to the -31 billion VND recorded in the same period last year.

The 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 revenue of 30 billion VND, a sharp decrease of 57% compared to the same period last year. The after-tax loss was over 33.2 billion VND, higher than the -20 billion VND loss in the same period.

The audit highlighted that, as of June 30, 2024, Thuduc House had accumulated losses exceeding 784 billion VND. Short-term liabilities exceeded short-term assets by 131 billion VND.

Simultaneously, the Ho Chi Minh City Tax Department issued decisions on enforcing administrative decisions on tax management by suspending the use of invoices, halting customs procedures for imported and exported goods, and enforcing collection by deducting money from bank accounts.

The independent auditing firm assessed these events as indicating material uncertainties that could lead to substantial doubt about Thuduc House's ability to continue as a going concern.

Furthermore, the audit also noted that the board of directors of Thuduc House decided not to account for the difference of 89 billion VND in overdue taxes between the company's book figures as of June 30, 2024, and the overdue amount as notified by 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