SGX hits Innopac with notice of compliance, seeks review of processes
The Singapore Exchange (SGX) on Friday called on investment
holding firm Innopac Holdings to appoint a professional firm to review the
group's investment processes and to recommend improvements in controls.
This comes as earlier this year in January, the company was
deemed a cash company by SGX, meaning that it should be suspended under listing
rules. The company disagreed, saying that it has other investments in
properties, joint ventures and available-for-sale investments.
In its notice of compliance, SGX also called on Innopac to
undertake an interim audit on its financial results for the full-year ended Dec
31, 2017, and have it completed by May 31, 2018.
"The exchange requires clarity on the following: (i)
the company's state of affairs i.e. whether the company is able to operate as a
going concern; (ii) whether the company has any active business operations
failing which, the company would be designated as a cash company under the
listing rules."
The company reported revenue of S$102,000 for the 12-month
period ended Dec, 31 2017, and a pre-tax loss of S$2.23 million. It had a
negative working capital of S$11.4 million as at Dec 31, 2017.
Jamie Lee
13 April 2018
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