SGX hits Innopac with notice of compliance, seeks review of processes, finances

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.