Contel Corporation and Shanghai Asia Holdings, audited by Nexia TS Public Accounting Corporation and KPMG respectively, told the Singapore Exchange (SGX) yesterday that auditors had included an " emphasis of matter" section in their reports.

Nexia noted that Contel Corporation, a Hong Kong-based investment holding group that trades silicon in North America, had incurred a net loss of US$1.1 million (S$1.36 million) last year and that its current liabilities exceeded its current assets by US$1.1 million as of Dec 31 last year.

Given that Contel depends on its cash and bank balances - US$138,000 as of Dec 31 last year - for its continuing operations, there is a " material uncertainty" as to whether the group can continue as a going concern, Nexia said.

Contel's ability to keep operating as a business is dependent on its " ability to generate cash inflows from its existing operating activities and to raise additional funds from investors" , added Nexia."  

• Part XI Procedures for Additional Listing Application (Primary Listing)

   
  
   

• 869

   

   

  The following sets out the usual steps in the additional listing process (other than rights issues) for an issuer with a primary listing:—

  (1) The issuer makes the appropriate announcement
  (2) The issuer submits one copy of the additional listing application prepared in compliance with  Rule 875, together with the supporting documents prescribed in  Rule 877
  (3) The Exchange reviews and decides on the application
  (4) The issuer announces the Exchange's decision promptly
  (5) The issuer obtains shareholders' approval (if required)
  (6) The issuer fixes and informs the Exchange of the books closure and entitlement dates, if applicable
  (7) The issuer allots and issues the equity securities and

  (8) The equity securities are admitted to the Official List.

   

  • Time Schedule

     
    
     

  • 873

     

     
    
    The Exchange will normally decide on an application within three weeks of the date of submission of the application that is complete. Review of an issue in which a connected person has a material interest can be expected to take longer. It should be recognised that the time taken to review a particular application may be longer depending on the circumstances of the case.

     

  • 874

     
    
     
    
    Where it is essential that an issue of securities be admitted for trading by a certain date, the Exchange should be consulted at the earliest possible time to arrange a satisfactory time schedule. This is particularly important in the case of a rights issue.