GLT: Explanation for Audit exception to operating results of first 9 months 2012

On 20/12/2012, Global Electrical Technology Corp. (Stock code: GLT) explained the Audit exception to operating results of first 9 months 2012 and the delay in submitting the financial reports as follows:

1. Contingencies relating to arrears of corporate income tax from 2008 – 2011:

            From 2008, the Company began a project to expand the manufaturing of anti-lightning devices in telecommunications. During the production over many years, we have continuously innovated the technology to meet the higher demands of customers. Based on Decree No.108/2006/ND-CP dated 22/9/2006 of the Government detailing some articles of the Investment Law and Circular 134/2007/TT-BTC dated 23/11/2007 of the Ministry of Finance guiding Corporate income tax, we have applied tax reduction for this activity.

            In 2012, the Tax Department of Hochiminh City did not accept the tax reduction for this activity. We have replied that we do not agree this this decision and we have appealed to the General Department of Taxation.

2. Delay in submitting the financial reports:

            NEXIA ACPA and the Company needed to reach mutual agreement on the amendments and supplements in the draft before the official issue.

HNX