Download VFC: Explanation for Difference in Profit after tax in Separate

VFC: Explanation for Difference in Profit after tax in Separate Financial Statement and Consolidated
Financial Statement 2016
On 04 Apr 2017, the Vinafco Joint Stock Company explained the difference in profit after tax in the
Separate Financial Statement and Consolidated Financial Statement in 2016 as follows:
Separate Financial Statement
In 2016, the company focused on boosting the business operation so Revenue from sales and services
increase by 61.9 billion dongs compared with that in 2015. As a result, the gross profit increased by 30
billion dongs.
Revenue from financial activities increased by 21.1 billion dongs compared with that in 2015 since in
2015, the profit of 2.0 billion dongs earning from selling GMD stock while revenue from financial
activities in 2016 increased due to the earnings divided from the affiliated company of 18.6 billion dongs
and borrowing interest earnings of 4.5 billion dongs.
Financial expense increase by 11.6 billion dongs since in 2015, the company had a decrease of 6.8 billion
dongs in reverting accrual provision for long-term financial investment and in 2016, the company
boosted in borrowing capital for business operation and investment, which made the borrowing
expense increase by 2.2 billion dongs.
Management expense rose by 4.6 billion dongs due to the increase in salary, insurance and other
expenses related to training, consulting and PR.
Earnings from other activities increased by 2 billion dongs due to in 2015, the company had to
additionally pay land tax for 2015 and previous years but in 2016, the company only had to pay the land
tax of the year.
Because of those reasons, the profit after tax increased by 9.9 billion dongs compared with that in 2015.
Consolidated Financial Statement
Revenue from sales and services decreased by 96 billion dongs due to the decrease in revenue from
transportation in Central area. As a result, gross profit decreased by 10.7 billion dongs compared with
that in 2015.
Revenue from financial activities increased by 3.3 billion dongs since the borrowing interest had an
increase.
Financial expense increased by 7.8 billion dongs since in 2016, the company boosted in borrowing
capital for business operation and investment, which made the borrowing expense increase by 2.2
billion dongs and the increased borrowing expense and the company extracted provision for loss in
investing in affiliated companies.
Management expense rose by 4.6 billion dongs due to the increase in salary, insurance and other
expenses related to training, consulting and PR.
Other earnings increased by 9.9 billion dongs since the company liquidated ship.
Due to those reasons, profit after tax of the company deceased by 11.9 billion dongs.