Firms flout disclosure deadline
Only about 210 of the 682 companies on the nation’s two stock exchanges have released their earnings reports for the second quarter, in accordance with the July 25 deadline mandated by law. In other words, about 70 per cent of the companies remained out of compliance with disclosure regulations.
Among the leading firms that were late in issuing earnings reports were real estate developer Hoang Anh Gia Lai (HAG), Phu My Fertilisers (DPM) and commercial bakery Kinh Do (KDC).
“A lack of time” was a common excuse for late reports, said Binh Chanh Construction Investment Co (BCI) deputy director Nguyen Thi Kim Thoa in an interview with Dau tu Chung khoan (Securities Investment).
Twenty-five days to complete financial reports was pretty tough for businesses, Thoa said.
“A completed financial statement has to come through many stages,” agreed Nguyen Thanh Son, deputy director of Sacombank’s real estate arm Sacomreal (SCR). “Auditing review alone would take around a week.”
Thoa also suggested that it was difficult to collect data in large-scale enterprises, as the parent companies might have standardised procedures and experienced accountants not available to the subsidiaries. A parent company could not easily intervene in a subsidiary in which it held only a minority interest, she said.
However, Le Dat Chi from the HCM City University of Economics said that policymakers had thoroughly considered the appropriate time frame.
“The excuses about a lack of technology or resources are not convincing,” Chi said. “Technical expertise in these companies has improved over time, helping make the process of accumulating and publishing financial statements go more smoothly.”
Businesses also couldn’t blame auditors, Chi said. In fact, only 10 per cent of the second-quarter financial statements submitted to the HCM City Stock Exchange had been audited.
The real reason for the lateness of reports was probably that enterprises were considering how to deal with a potential market backlash from disappointing figures, he added. Sanctions imposed on late financial statements were also not rigorous enough, nor were they strictly applied. So far, no listed companies have been fined for late disclosures.
Among major companies that have posted business results for the first six months of this year, many have earned high profits – all higher than in the same period last year – including Vietinbank (CTG), Vietcombank (VCB), Sacombank (STB), Eximbank (EIB), steelmaker Hoa Phat (HPG) and Vinamilk (VNM).
However, insurer Bao Viet Holdings (BVH) saw a plunge of 21.6 per cent in its first-half earnings against the same period last year, posting a profit of just VND395 billion (US$19.2 million). — VNS
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