S-chips: SGX has fired a warning about financial accounting practices at several S-chip companies, particularly for those with large operations in China.
The regulator is closely monitoring disclosures of these companies, especially for those which show large swings in financial positions and operating performance under perplexing circumstances.
For instance, companies reported customer claims for compensation >10x the value of sales, as well as massive write offs for receivables without clear explanations.
Further, significant loans and advances to business associates that were not part of ordinary business were made, and subsequently written off.
Names of the firms are not mentioned, but spanned a wide range of sectors, including textile and sporting goods, manufacturing, heavy industries, packaging, electrical and electronics, retail and chemical sectors.
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