<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published June 23, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>80% of S-chips pass bank balances test: SGX
Exchange looking to tighten corporate governance rules
By SIOW LI SEN
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>THE bank balances of 80 per cent of S-chips pass muster, said the Singapore Exchange (SGX), citing feedback from auditors - amid growing anxiety over the reliability of accounts.
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</TD></TR><TR><TD bgColor=#fffff1><TABLE border=0 cellSpacing=0 cellPadding=0 width=124 align=center><TBODY><TR><TD vAlign=top>'We will also pay particular attention to newly listed companies. Public comments on proposed new measures will be sought in due course.'
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>The SGX yesterday also said it is looking to tighten corporate governance rules including raising the standards of issue managers, chief financial officers and directors.
Newly listed companies will come under increased scrutiny, it added.
In its latest SGX regulator's column, it said a March dialogue with auditors highlighted the need for greater vigilance, particularly more checks and validation in key risk areas such as the safeguarding of cash, impairment of accounts receivable and assessment of off-balance sheet items.
'They (auditors) have extended their audit procedures, including wider sampling of accounts receivable, and more cases of visiting banks to obtain direct source confirmation of bank balances,' the SGX said.
'For example, auditors have conducted more detailed confirmation of bank balances for 80 per cent of listed companies operating in China, without adverse findings,' it said.
There are 149 S-chips listed here.
The SGX said the remaining companies were not subject to extended validation procedures, either because the size of cash balance was immaterial or those companies had not reached the financial year end.
For the latter, detailed verification will be performed in the coming months, it said.
The regulator also said it is looking to tighten corporate governance standards.
It will closely monitor compliance with its Listing Manual as well as emerging risks, introducing as appropriate initiatives to address these risks.
'We are in dialogue with market professionals on ways to strengthen the practice of corporate governance for all companies listed on SGX,' it said.
'We will also pay particular attention to newly listed companies. Public comments on proposed new measures will be sought in due course.'
Areas that the new measures will focus on include raising the professionalism of issue managers, making sure chief financial officers have relevant expertise and experience and identifying independent directors to match the needs of companies, especially those with overseas operations and reviewing listing conditions.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>80% of S-chips pass bank balances test: SGX
Exchange looking to tighten corporate governance rules
By SIOW LI SEN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>THE bank balances of 80 per cent of S-chips pass muster, said the Singapore Exchange (SGX), citing feedback from auditors - amid growing anxiety over the reliability of accounts.<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
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- SGX
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Newly listed companies will come under increased scrutiny, it added.
In its latest SGX regulator's column, it said a March dialogue with auditors highlighted the need for greater vigilance, particularly more checks and validation in key risk areas such as the safeguarding of cash, impairment of accounts receivable and assessment of off-balance sheet items.
'They (auditors) have extended their audit procedures, including wider sampling of accounts receivable, and more cases of visiting banks to obtain direct source confirmation of bank balances,' the SGX said.
'For example, auditors have conducted more detailed confirmation of bank balances for 80 per cent of listed companies operating in China, without adverse findings,' it said.
There are 149 S-chips listed here.
The SGX said the remaining companies were not subject to extended validation procedures, either because the size of cash balance was immaterial or those companies had not reached the financial year end.
For the latter, detailed verification will be performed in the coming months, it said.
The regulator also said it is looking to tighten corporate governance standards.
It will closely monitor compliance with its Listing Manual as well as emerging risks, introducing as appropriate initiatives to address these risks.
'We are in dialogue with market professionals on ways to strengthen the practice of corporate governance for all companies listed on SGX,' it said.
'We will also pay particular attention to newly listed companies. Public comments on proposed new measures will be sought in due course.'
Areas that the new measures will focus on include raising the professionalism of issue managers, making sure chief financial officers have relevant expertise and experience and identifying independent directors to match the needs of companies, especially those with overseas operations and reviewing listing conditions.
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