Alorica, a provider of customer management outsourcing solutions, has a young workforce: 30% are from Gen Z, and around 61% are millennials. “Freedom of thought is very important for them,” said Irene L. Tan, vice-president for learning and development at Alorica Philippines, Inc., who added that the company has benefited from the “brilliant ideas” originating from these generational cohorts. In this episode of B-Side, she tells BusinessWorld reporter Patricia B. Mirasol how intentional communication and creating a culture of care are key to retaining young talent when most of them are working from home because of the pandemic.
TAKEAWAYS
To keep young employees engaged, have a clear message. Embrace social.
Intentional communication — clear and purposeful messaging that accounts for the feelings of the receiver — is vital since 60% of Alorica’s Philippine workforce have been working from home since the pandemic struck.
“We repackaged our whole training program so it fits the virtual setting. We focused on how [frontline leaders] coach or problem solve virtually.”
Alorica produces videos, infographics, and micro-learning content to keep its young employees engaged. Its learning academy offers courses that support career pathing, leadership development, and life skills. Among these are “Til Debt Do Us Part” (a personal finance course) and “Before You Click Send” (a digital communications course). Self-paced materials have proven popular in the academy because of the greater control it allows.
“It’s very important for our young workforce to make sure we have the social media aspect with features they enjoy that we can bring in a controlled environment,” she said, adding that both Gen Zs and millennials have a learning orientation that is very digital and process information in bite-sized pieces.
Personal attitude dictates the pace of career growth…
Self-motivation and the willingness to learn will allow employees to advance. “The opportunities are there,” she said. “It’s up to you how you will grab and learn from every opportunity. It all begins with how you challenge yourself.”
Added Ms. Tan: “We promote 80–90% of folks from within so we need to have a very strong bench training for leaders.”
…and so does adaptability.
One’s degree should not limit one’s career path, as the skills and knowledge learned can be adapted to other fields and functions. “You can grow laterally in an organization,” said Ms. Tan. “Adaptability is one of the special traits we look for.”
Honda Cars Philippines, Inc. (HCPI) Honda’s automobile business unit in the Philippines announces its “Summer Holiday Service Offers” promo, which features different discounts and deals offered until May 31, 2021, at select Honda Cars dealerships and service centers nationwide.
Customers may enjoy a 20% discount on select genuine parts, lubricants, fluids, and accessories such as PM 2.5 cabin filter, regular cabin filter, spark plug, battery, brake pad, brake shoe, mineral oil (10W30), super long life coolant, automatic transmission fluid, manual transmission fluid, power steering fluid, HCF-2 CVTF fluid, brake fluid, and our existing additives such as engine cleaner and engine oil treatment.
Moreover, in order to provide clean air within the cabin ensuring a safe drive during the new normal, a 20% discount is given on the Honda-approved air purifier.
Additionally, customers may enjoy buy one (1) take one (1) promo in select original equipped (OE) City (2013-2020) and BR-V (2017-2021) tires. A 50% off discount is available on every purchase of two (2) City and BR-V tires, inclusive of seven (7) year manufacturer warranty from date of production.
On top of all these offers, different Honda services such as the Free 30-Point Check-up, BLITZ 1-Hour Preventive Maintenance Service, and Mineral Oil (10W30)-Based Change Oil Package with a discounted price of PHP 1,700 from the original suggested retail price of PHP 1,915 (for out-of-warranty vehicles only).
To know more about the Summer Holiday Service Offers, and the latest HCPI news and promos, visit the nearest participating Honda Cars dealership, or access Honda Cars Philippines, Inc.’s VIRTUAL SHOWROOM through HCPI’s official website at www.hondaphil.com.
For details, visit or call any of our select participating dealers today!
With strict quarantine protocols and transport restrictions reinstated in high-risk parts of the country, the logistics industry continues to play a vital role in sustaining both the economy and consumers. To help support the growing and evolving demands of the industry, Hino Motors Philippines (HMP), the exclusive distributor of Hino trucks and buses in the Philippines, introduces the newest addition to its growing roster of light-duty trucks—the all-new Hino 300 Series.
Built for durability and usability, the all-new Hino 300 Series is designed to support business owners looking to invest in light-duty trucks that can handle heavy-duty operations. The introduction of the new units comes at an opportune time with the e-commerce industry thriving and suppliers and retailers requiring reliable trucks to transport essential goods.
All-new Hino 300 Series: The reliable on-road transport partner
The all-new Hino 300 Series light-duty trucks come with a Euro 4-compliant, fuel-efficient engine that can help businesses save costs, especially for long drives. The 4-cylinder diesel engine runs on an electric control common rail fuel injection system designed to deliver high-power and high-efficiency performance. One variant also includes a 6-speed Automatic Transmission, where the electronic control ensures shifts, including overdrives, in any road conditions, are carried out with ease. The new transmission likewise allows optimized engine braking, an expanded lock-up range, lower fuel consumption on idle, and an overall quieter ride.
To ensure driver convenience, the cab interior has been upgraded with a bigger meter display for easier reading, improved power doors and windows, and ergonomically designed seats for more room and comfort. SRS Airbags and Anti-lock Brake System (ABS) have also been installed in some Hino 300 Series variants for increased driver and passenger safety.
“We recognize the importance of the local transport and logistics industry given the challenges the country is currently facing. As the country works toward economic recovery, HMP will continue providing Total Support to its customers and lifetime value to Filipinos and the country. With the introduction of our all-new Hino 300 Series, we hope to not only support local suppliers and retailers in responding to the current demands of the market but also to help them in expanding to other businesses and finding new opportunities,” HMP President, Mitsuharu Tabata shares.
Availability
The all-new Hino 300 Series, which comes in the narrow and wide cab variants, is now available in all Hino 3S dealerships nationwide. To request a quotation and to get more information about the all-new Hino 300 Series and other Hino products, visit Hino’s website or official Facebook page.
GCash enables TODA drivers to accept GCash QR payments from riders
The Philippine economy is beginning to be digitally transformed as the pandemic has further driven the shift of workplaces to remote modes, the preference for online stores among consumers, and the increased use of electronic wallets.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, in a recent webinar, described his vision for the country becoming a digital-heavy, cash-light society to help achieve inclusive growth.
“50% or half of all transactions should be digital by 2023, and 70% of Filipino adults should have formal bank accounts by 2023,” Mr. Diokno said.
Much remains to be done to further prepare Filipinos and businesses for a digital economy to be realized. Nevertheless, several sectors are actively playing significant roles in making the economy more adaptable to a pandemic-shaped future.
Among these players, GCash (Mynt) is actively doing its share in building up the country’s digital economy not only by simply offering consumers a convenient choice for their purchases but also by empowering the public sector through meaningful partnerships.
Taking the lead in enabling these partnerships, Cathlyn Pavia, assistant vice-president and head for partnerships and public sector at GCash, shared in an interview that the company’s fintech service is grounded on its goal of enabling a digital ecosystem to help every Filipino.
Lhen Pavia, GCash’s champion for public partnerships
“Our role is really to become a platform to make financial services available with the government, businesses, and consumers in general,” Ms. Pavia said. “While we make our own services available, more importantly, we partner with other financial services to complete that.”
More than funding electronic wallets to enable payments to partner businesses, organizations, and banks, Ms. Pavia continued, GCash is enabling various financial services within the app such as keeping and accessing savings as well as availing microinsurance.
The platform’s relevance, especially in the past few months, has been evident with an estimated 38 million registered users, which comprises a third of the Philippine population.
“GCash has been consistently the number one finance app,” Ms. Pavia added. “If you check your Google Store, you’ll see that GCash is the number one free app, above Instagram and even TikTok. That says a lot.”
Opportunities to unlock
Ms. Pavia sees, however, that in further realizing a digital economy in the country, there is still much room to promote digital payments in regional and provincial. Moreover, there are several opportunities to maximize, namely enabling a robust national identification system, which is currently in progress; increasing awareness of digital payments among consumers and businesses; and ensuring adequate infrastructure for better connectivity.
“For the public sector, there’s still an opportunity to educate them on what would be the steps to adopt digital solutions and how they can incorporate that with their programs,” Ms. Pavia explained. “For the private sector, it’s how they can utilize digital systems for the disbursement of salary of their employees. And for consumers, it’s letting them know that fintech solutions can help them [avail] financial services.”
Partnerships with government
Collaboration between private and public sectors serves as a key enabler in dealing with these challenges, Ms. Pavia stressed.
“There would really be a need for increased collaboration in addressing these concerns, and for the financial institutions’ side, that would mean co-creating programs with government institutions to educate both businesses and the public,” the Mynt official said, adding that IT and telco providers can collaborate in terms of expertise in digitalizing processes and gearing up systems for digital payment facilitation.
For GCash, collaboration plays a vital role in building the digital ecosystem. As it saw many opportunities to serve Filipinos last year, GCash has been partnering with government agencies, local government units (LGUs), and communities.
At the national level, GCash served as a partner of the Department of Social Welfare and Development in distributing funds under the Social Amelioration Program.
As many as 250,000 beneficiaries were facilitated in less than three days, Ms. Pavia shared. As a result, these beneficiaries were able to receive the funds without lining up in government offices, and they got to utilize the funds digitally, be it for groceries, utility bills, or mobile load. GCash is also helping DSWD in its Assistance for Individuals Under Crisis Situation program on a monthly basis.
At the Bureau of Internal Revenue, GCash enables contactless tax filing and payment, especially on the individual level; while at the Social Security System and the Pag-IBIG Fund, individuals can still pay their contributions conveniently amid the pandemic. Last February, SSS has enabled GCash as an option for receiving benefits.
Empowering communities
Among LGUs, the City of Makati is a key partner of GCash, and the benefits of empowering constituents through digital payments have been evident in the area. Through the LGU’s Makatizen Program, for instance, a GCash account was created for each adult constituent. More recently, the MAKA-Tulong program utilized GCash for disbursing additional financial assistance to citizens, and this was done in a matter of days instead of weeks. Also, through GCash’s PoweyPay+ platform, the LGU can disburse salaries for employees as well as regular allowances for senior citizens.
GCash empowers Makati jollijeeps to facilitate digital payments transactions
Ms. Pavia also shared that GCash will begin assisting the City of Muntinlupa in distributing allowance to scholars this year.
“The coordinators with the [city’s] schools support the idea of going digital because this can promote financial literacy among students. They get to properly monitor their expenses, and they get to explore different financial services, starting with savings and exploring investment,” she shared.
To completely build a digital ecosystem, GCash finds it important to bring services to other sectors within communities.
“When we engage in the public sector, we don’t only stop with the government itself. Now, we’re also expanding digital adoption even within communities,” Ms. Pavia pointed out.
A notable example of this is in Antipolo City, Rizal, where GCash engaged with tricycle operators and drivers associations (TODA) to enable cashless and coinless payment of fares.
“The LGU mandated that public transportation should enable digital payments as an option,” Ms. Pavia shared. “With that direction, we were already able to onboard more than 500 TODA drivers to accept QR payment, and it’s still ongoing. The target is to have up to 12,000 drivers enabled with GCash payment acceptance,” Ms. Pavia said.
All these initiatives serve as a start for GCash to help enable a digital economy in the country, and so it looks forward to further enhancing its solutions and bringing these closer to more Filipino consumers and sectors.
For individual consumers, it has just released its personal QR code functionality to make the transfer of funds more convenient between sellers and buyers. For merchants, the recently launched GLife allows merchants to access a bigger market and offer their services through a microsite within the GCash app.
And for the public sector, GCash will continue working not just directly with government entities but also through partners in enabling alternative means to disburse and collect payments.
“We really look forward to collaborating more and launch new partnerships and even greater synergies with existing stakeholders in the government,” she said.
GCash will participate in the BusinessWorld Virtual Economic Forum special edition with the theme “The Digital Economy PH: Towards a Faster Economic Recovery” on May 26 to 27, which will gather key leaders from BSP, the International Monetary Fund, and other senior business sector leaders to discuss digital technology as an enabler of economic development.
A woman visits a semiconductor device display at the Appliance and Electronics World Expo (AWE) in Shanghai, China, March 23. — REUTERS
A woman visits a semiconductor device display at the Appliance and Electronics World Expo (AWE) in Shanghai, China, March 23. — REUTERS/ALY SONG
By Jenina P. Ibañez, Reporter
THE GLOBAL SHORTAGE of semiconductor chips has caused supply chain constraints among local electronics manufacturers, forcing them to take on higher costs to fulfill client orders.
“(The shortage is) good for export business but we are capacity constrained due to long lead times of manufacturing equipment deliveries,” Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) PresidentDanilo C. Lachica said in a mobile message.
Local companies have been maximizing their production output amid lockdown restrictions, he said, “albeit at higher costs of operations.”
The coronavirus pandemic has fueled demand for semiconductor chips, which are used in electronic devices and vehicles. Lockdowns meant to curb the rise in coronavirus disease 2019 (COVID-19) cases have led to factory shutdowns and supply chain disruptions.
Chipmakers are racing to meet the surge in demand for consumer electronics during the pandemic, along with an unexpected rebound in demand from carmakers that cut semiconductor orders after vehicle sales fell last year. Taiwan Semiconductor Manufacturing Co., the biggest company in Taiwan, earlier this month warned that the global semiconductor shortage may continue until 2022.
Restrictions on Chinese access to American technology amid tensions between the two economies had also prompted China to stockpile semiconductor chips.
Integrated Micro-Electronics, Inc. (IMI), an electronics manufacturing services and power semiconductor assembly firm, has been identifying alternative component suppliers after noting the threat of a shortage in mid-2020.
IMI Head of Investor Relations Brian Jalijali said the Ayala-led company has been working with suppliers and customers to forecast and manage procurement.
“That said, it’s difficult to completely eliminate all effects of the current global shortage. Additional orders from customers that were not forecasted early enough have had to be pushed back and delayed as we deal with increased raw material order lead times,” he said in an e-mail.
“These extended lead times have also squeezed the manufacturing timeline from the IMI perspective, forcing us to deploy workers on overtime, and in some cases, use more expensive expedited shipping to meet customer requirements.”
Additional costs incurred by the company would likely be passed on to customers.
“When it comes to increased material prices from customer identified suppliers, those costs are more straightforward to pass on to customers. However, increased labor expenses from overtime and shipping expenses are discussed on a case-to-case basis to determine how we share these costs with our clients,” IMI’s Mr. Jalijali said.
Meanwhile, Mr. Lachica said SEIPI member companies have not raised prices.
SEIPI set a 7% industry growth forecast for 2021. Electronics exports fell 8.8% to $39.67 billion in 2020, versus the pre-pandemic forecast of 5% growth.
The industry’s operations suffered from disruptions during the stricter lockdown last year, but has since expected more demand from the industrial, mobility, consumer, and medical electronics sectors as the global economy begins to recover.
IMI works on automotive and industrial technologies manufacturing in the Philippines, China, Bulgaria, the Czech Republic, Germany, Japan, Mexico, Serbia, the UK and the US.
THE BANKING INDUSTRY’S nonperforming loan (NPL) ratio may go beyond 5% by the end of this year, a Bangko Sentral ng Pilipinas (BSP) official said.
“We’re expecting the year-end 2021 NPL ratio to be a little above 5%,” BSP Deputy Governor Chuchi G. Fonacier told BusinessWorld via Viber message.
Ms. Fonacier said the Financial Institutions Strategic Transfer (FIST) Law, signed in February, will help banks offload bad assets which will bring down the NPL ratio.
“With the enactment of the FIST Law, it is estimated that NPL ratio of banks will decline by 0.63 to 0.71 percentage points,” she said.
The industry-wide NPL ratio reached 4.08% in February, the highest in more than 11 years or since 4.09% in October 2009, data from the BSP showed.
Gross bad loans surged 80% to P431.266 billion in February, from P239.902 billion a year earlier.
Ms. Fonacier said it is difficult to assess the impact of the two-week enhanced community quarantine (ECQ) in Metro Manila and adjacent provinces on banks’ bad loans. No mandatory loan moratorium was implemented during the ECQ from March 29 to April 11.
“We will have to observe first how the FIST Law will impact on the NPAs (nonperforming assets) of the banking industry,” she said.
BSP Governor Benjamin E. Diokno has said they expect banks to sell at least P152 billion of their nonperforming assets to FIST Corporations to help them clean their balance sheets.
Meanwhile, Michael Langham, senior Asia country risk analyst at Fitch Solutions, said the impact of the lockdown will hurt banks’ consumer lending portfolio, which account for 9.3% of their outstanding loans and has proven to be “more susceptible to souring during the pandemic.”
Consumers will feel the “income squeeze,” as inflation continues to rise, he said.
“This [lockdown] will in particular hit low-income households and informal workers, with the unemployment rate already elevated at 8.7% in the first quarter of 2021,” he said in an e-mail.
Mr. Langham said the economic situation of borrowers will also impact the housing sector and mortgage payments, with residential home loans accounting 19.1% of banks’ portfolio.
“This could result in properties falling into negative equity, particularly if bought in late 2019 or early 2020, and raise the risks of repayment for such mortgages,” he said. Negative equity happens when the current value of a property is already lower than the outstanding balance remaining on a borrower’s mortgage.
Central bank data showed home prices outside Metro Manila rose 5.9% in the fourth quarter of 2020, slower than the 6.4% in the third quarter and the 8.3% growth a year earlier.
Meanwhile, prices of residential properties in Metro Manila dropped 4.8% in the last three months of 2020, a reversal from the 15.1% increase a year earlier but a less steep decline from the -12.2% in the previous quarter.
Despite a likely pickup in bad loans, Mr. Langham said the banking industry remains well-buffered for losses and is likely to benefit from the FIST Law, although the process could be “slow.”
“Banks may be reluctant to divest NPLs while the economy is still struggling with the pandemic and asset prices remain depressed. As such, this may be a slow process that helps bank balance sheets over the medium term, keeping the NPLs ratios elevated,” he said.
SHAREHOLDERS who own at least 10% of a publicly listed company’s outstanding capital stock for at least a year can call for a special stockholders’ meeting, according to new guidelines issued by the Securities and Exchange Commission (SEC).
In Memorandum Circular No. 7, the SEC said the new rules on the calling of special stockholders’ meetings aim “to promote good corporate governance and the protection of minority investors.”
Timson Securities, Inc. trader Darren Blaine T. Pangan said the new rules “somehow give minority investors a voice that can be heard by the controlling or major stockholders.”
Under the rules, any number of shareholders that hold at least 10% of outstanding shares of a publicly listed company have the right to call for a special stockholders’ meeting, whether in-person or through remote communication.
The shareholders should have held the shares for at least one year. They should send a written call for a special stockholder’s meeting to the board of directors through the corporate secretary at least 45 days before the proposed meeting date.
The document should include names of the qualifying stockholders and the percentage of shares they own respectively; purpose and agenda of the meeting; and proposed time and date.
The special meeting should not be scheduled within 60 days from the previous meeting of a similar nature, which also had the same agenda unless the company’s by-laws allow this. Otherwise, approval from the company’s board of directors will be needed.
The board of directors may also set the special meeting at an earlier date, “if it determines that the matters raised by the qualifying shareholders necessitate a quick resolution to prevent undue damage to the company,” the SEC said.
However, the agenda of the special stockholder’s meeting should not include the removal of a board director and issues that have already been resolved with finality in previous meetings.
If the stockholders’ request for the special meeting does not meet the requirements or is proven to be acted upon in bad faith, the board of directors will have to inform the requesting stockholders within 20 days from receiving the request that the call for a meeting was denied due to their noncompliance.
If the requirements are all met, the company’s board of directors must issue a notice to convene the special stockholders’ meeting at least a week before it is scheduled.
“Delay in the processing of such requests shall be equivalent to refusal if the delay is solely caused by negligence on the part of the corporation,” the SEC said.
Summit Securities, Inc. President Harry G. Liu said the new order is “a good move” to make management more conscious of running listed companies properly, as well as protect investors.
“I always believe that all the shareholders, whether small or big, [are] very important,” Mr. Liu said on a phone call on Sunday.
“If there’s a legitimate reason for the minority to be of concern and the [board] thinks it’s a proper concern, I think it’s but due for the company to hear [them] out,” he added.
Any company executive who denies qualified shareholders their right to call for a meeting may face fines, a permanent cease and desist order, possible suspension or revocation of the corporation’s certificate of incorporation, and dissolution and forfeiture of assets.
MICHAEL KORS 40th Anniversary Collection (Fall/Winter 2021)
MICHAEL KORS 40th Anniversary Collection (Fall/Winter 2021)
MICHAEL KORS 40th Anniversary Collection (Fall/Winter 2021)
MICHAEL KORS 40th Anniversary Collection (Fall/Winter 2021)
SAY what you want about the man, but Michael Kors knows how to put on a show. For his 40th anniversary in fashion, Mr. Kors made Broadway his runway. Models like Naomi Campbell, Helena Christensen and Bella Hadid walked on pavement, the marquees of the theaters their guiding light.
“I’m here today to give back to a group of people who have given me so much,” he said in an opening speech about his show, mentioning efforts to raise money for the Actors Fund, well aware of the toll shutdowns took on their profession. The show was streamed via his website, as well as on YouTube.
His favorite performers were there too: American-Canadian singer, songwriter, and composer Rufus Wainwright sang in the background, and Broadway veterans Kristin Chenoweth, Bernadette Peters, Chita Rivera, and Billy Porter, among others, appeared on a virtual Sardi’s wall (singer Bette Midler was initially on mute as a gag). The Broadway stars raised awareness of the Actors Fund, a charity supporting performers and behind-the-scenes workers.
As for the clothes themselves —Michael Kors made his fortune and his future empire (eventually coming to own not only his own brand, but also Versace and Jimmy Choo) on American-style sportswear, and a showcase of the type was expected. The autumn/winter collection was a mix of dressed-up daywear (a firetruck red pantsuit coupled with a fur coat) to understated evening glamor (a fully sequined black floor-length dress). The devil is in the details: the finale dresses in gold, silver, and black are draped with men’s coats (as if women were draped with their dates’ jackets), and zooming in reveals the coats’ fully-sequined lining.
Mr. Kors said he had reissued a selection of his brand’s “most iconic looks,” with each piece including a QR code revealing its story.
“This past year, I got time to actually think about the 40-year career, the journey that it has been, the people I’ve met, the places I’ve gone, all of the collections, it’s a lot to process,” Mr. Kors told Reuters in an interview. “But I’m happy — it was one of the rare good things about lockdown that we all, I think, really got a greater sense of appreciation about so many things.”
“I wanted to talk about, hopefully if we are optimistic but realistic, that when this collection arrives in the stores starting September, October, November, December, we’re all going to crave going out and getting dressed and kind of strutting our stuff,” Mr. Kors said.
“Theater will reopen and we won’t go to the theater in just a hoodie. We’re going to get dressed up. When we can get back into our offices and we have a meeting we’re going to want to get dressed up. When New Year’s Eve rolls around next year we’re getting dressed up. So, it’s very much a celebration of big city life, hitting the streets, the theater.”
The looks are what everyone in the world thinks a patrician New Yorker would wear: lots of black, lots of tailoring, and a hint of brazenness. Yes, that lady is wearing a polite little suit, but she decided to top it off with a zebra-print coat. Houndstooth and tweed stand side by side with leopard, fur, leather and metallics. All are presented with this American cleanliness that even leopard print can look almost polite.
“I’ve been fortunate to travel the world, seeking inspiration, but no matter how far I go I always come home to New York City,” Mr. Kors said.
THE Securities and Exchange Commission (SEC) is asking interested parties to comment on its proposals for changes in the SEC Oversight Assurance Review (SOAR) inspection program, which was revised to align with the International Forum of Independent Audit Regulators’ guide on audit regulation.
“SOAR Inspections are intended to enhance the quality of audits of the financial statements of publicly-listed companies,” the SEC said.
The program is an initiative of the corporate regulator to do on-site reviews of accredited audit firms auditing listed companies in the Philippine Stock Exchange and the Philippine Dealing & Exchange Corp.
“For instances of extraordinary events which necessitate the flexibility on the manner of inspection… the Inspection Team, upon coordination with the firm, may perform remote or virtual inspection for a period of at least three weeks,” the commission said.
The commission plans to choose more than one of the company’s issuer audits for review.
“Our selection of audits for review does not constitute a representative sample of the firm’s total population of issuer audits,” the SEC said.
The SEC plans to add deputy inspection team leaders to the SOAR’s inspection team. An evaluation report of the firm’s remediation based on the team’s inspection will need to be approved by the commission en banc before it is given to the inspected firm.
Inspections will be done at the engagement-level and at the firm-level.
Company policies and procedures should align with the system on quality control under the redrafted Philippine Standards on Quality Control (PSQC) 1 or any of its amendments, Quality Control for Firms that Perform Audits and Reviews of Financial Statements or its amendments, and the firm’s documentation should be deemed sufficient.
Additionally, the commission will look to the redrafted Philippine Standards on Auditing 220 or its amendments.
The commission will notify the firm with details and purpose of the inspection at least 60 calendar days before it begins. Meanwhile, the firm of the selected audit engagement will be given at least 15 days before the inspection.
The audit team is responsible for preparing the following documents to the inspection team on the first day of inspection: completed Engagement Information Form, background about the firm, proof of archiving and certification from the managing partner and engagement partner that the engagement work papers provided to the inspection team are the original final version.
“The frequency of inspection shall be based on the relative size of the audited publicly-listed companies in terms of market capitalization,” the SEC said.
For firms with a client portfolio of 10% or more of the total market capitalization of publicly listed companies, inspections would be conducted once every two years. Meanwhile, those with less than 10% will be inspected once every three years.
However, the commission may order more inspections on firms should it deem necessary.
Findings of the inspection team may be classified as either opportunities for improvements or for enhancements or as significant deficiencies.
“Firms may request for another discussion with the Inspection Team, after the status meeting, but before the issuance of the LOF (Letter of Findings), to further clarify matters that were raised during the status meeting,” the commission said.
The LOF will be serving as the basis in preparing the SOAR inspection report. Firms being expected may request to extend until 15 days the time given to reply to the LOF or the SOAR inspection report.
The proposed amendments for the SOAR inspection program also adds instructions for the remediation process, evaluation of remedial actions, as well as guidelines in case there are contested findings.
Actions may be published on the SEC website within 30 calendar days after the evaluation report of the firm’s remediation.
“The commission shall issue and publish an Annual Inspection Report which aims to provide the public with insights on observations noted during SOAR inspections,” the SEC said.
Revisions are proposed to further protect public interest and investors, and those who use a company’s audited financial statements.
“The revised rules on the frequency of inspection shall apply to firms that will be inspected starting year 2022,” the commission proposed. — Keren Concepcion G. Valmonte
BURBERRY’S Autumn/Winter 2021 collection is understandably stripped down, but in no way does it cut itself some slack.
A spoken word piece by Shygirl opens the show, set on a beige stage, but what comes out isn’t as Burberry beige as one might expect from the storied tweedy British fashion house. An interview of Burberry chief creative officer Riccardo Tisci by Vogue posits that the collection is inspired by forest exploration outfits at the turn of the last century. That explains the general scout-uniform vibe of the collection, but what charming scouts they make. Think leather caps and cute little jackets.
However, this is Mr. Tisci we’re talking about (early 2000s Givenchy —he joined Burberry in 2018) so there’s a touch of untamed pre-Raphaelite beauty, side by side with an exploration-outfit chic coupled with a little bit of quaint patchwork. The brand’s choices for references brandish its Britishness, and we like it.
The theme of natural exploration is seen in prints that seem to point to tree bark, splayed across more urban creations. The same fabric is cut into strips or squares and appliqued on clothes, giving them movement that reminds one of leaves, walks and trees. To reflect wildlife, copious amounts of eco-fur in trims and in full-length coats were seen.
Cuffs are also snipped just so also to make them move (making a pair of pants seem like a chunk off of some kinetic art) and even glamazonian outfits like a golden trench coat is given that homespun treatment with fringe.
There’s an odd sort of simplicity in there, perhaps to reflect changing times: all of the outfits can transition from day to night, but, more importantly, the beige totes (think of your canvas beige grocery totes, but in lambskin) point to a utilitarianism that seems to be the fashion, given the times.
PARIS —Mixing high- and low-cost styles is a well-worn fashion trick, and Korean pop sensation BTS is taking the approach to a whole new level in marketing deals announced last week.
After first agreeing with McDonald’s to promote a new meal selling for just over $6, the six-strong boyband have also been named brand ambassadors for Louis Vuitton, the purveyor of handbags that sell for well above $1,000.
The Grammy-nominated South Korean group, which now releases English-language songs too, has topped the album charts several times in the United States.
Louis Vuitton, the biggest sales driver at French luxury goods conglomerate LVMH, already works with a roster of celebrities to promote its wares, from actresses Emma Stone and Jennifer Connelly to actor and singer Jaden Smith.
Many brand ambassadors have starred in advertising campaigns but also popped up in the front row at fashion shows, helping drive buzz on social media, a marketing avenue top luxury brands have invested heavily in.
Asia — and especially China, where K-pop is also popular — provides major markets for luxury brands, and has fueled sales bounces as coronavirus disease 2019 (COVID-19) restrictions ease.
Louis Vuitton’s menswear designer Virgil Abloh, known for his streetwear-style creations and who is friends with hip-hop star Kanye West, said the BTS partnership added “a modern chapter to the House, merging luxury and contemporary culture.”
Luxury brands have not traditionally liked working with so-called influencers who represent other labels that do not fit with their high-end image, although the boundaries between sports and fashion for instance is starting to blur.
“As disparate as their businesses might seem, McDonald’s and Louis Vuitton share a need to onboard new generations of consumers,” Carol Spieckerman, president at retail consultancy Spieckerman Retail, said.
Louis Vuitton had no comment on Friday on BTS’ McDonald’s deal. Under that agreement, the band’s meal will launch starting next month in nearly 50 countries, and will include chicken McNuggets, fries, and two dips.
Neither Vuitton nor McDonald’s disclosed any financial details. — Reuters
2GO reported an attributable net loss of P1.84 billion for 2020, significantly wider compared with the previous year’s loss of P890.35 million. — INSTAGRAM/2GO_TRAVEL
2GO GROUP, Inc. has no plans to raise additional capital this year to fund its modernization projects, which are expected to help the company get back on track to profitability, a company official said.
“[The] management continues to invest in modernizing 2GO. During 2020, management began implementing new software and automation systems to improve customers’ ordering and delivery experience as well as the company’s operating efficiencies. These systems go live in 2021,” William Charles Howell, 2GO chief financial officer, was quoted as saying in the minutes of the company’s 2021 annual stockholders’ meeting held on Friday last week. The document is available on 2GO’s website.
Mr. Howell also said the company continues to invest in the modernization of its shipping fleet and equipment.
“These investments will lead to improved customer service and a reduction in costs which in turn will help the company on its way to profitability. At this time, management is able to fund these investments internally thus have no current plans to raise additional capital,” he said.
The company began the implementation of its three-year modernization program in mid-2019, according to 2GO Chief Operating Officer Waldo C. Basilla.
“The process is ongoing. It includes rationalization and optimization of the company’s assets, organization and network,” Mr. Basilla was quoted as saying in the minutes of the annual meeting.
“Among many things management has accomplished to date, this process has allowed them to right-size the shipping fleet, warehouse, facility footprint and organization. These efforts have significantly improved their cost base and will allow them to compete aggressively immediately,” he added.
The company plans to deploy new ships, which are designed to consume less fuel and should support the company’s sustainability vision, in the first half of 2021, according to Mr. Basilla.
“In the first quarter of 2021, management implemented an internationally recognized transport management system that not only optimizes routings and lower cost, but more importantly improves customer experience,” the official was also quoted as saying.
“With all the technology improvements, 2GO now has the capability to do data visualization and data analytics that will ultimately help improve customers supply chain structures,” he added.
On Thursday last week, 2GO reported an attributable net loss of P1.84 billion for 2020, significantly wider compared with the previous year’s loss of P890.35 million.
Revenues fell 18.7% to P17.41 billion from P21.41 billion previously. Freight revenue decreased 9.97% to P3.03 billion, travel revenue dropped 77.57% to P839.14 million, revenue from logistics and other services fell 13.14% to P5.83 billion, while the goods segment saw a 1.55% growth to P7.72 billion.
Cost of services and goods sold declined 14.24% to P16.86 billion.
2GO said its EBITDA (earnings before interest, taxes, depreciation, and amortization) and EBITDA margin remained positive at P439 million and 3% in 2020 and P1.9 billion and 9% in 2019.
Its total liabilities to total equity ratio was 7.9 in 2020, up from 3.6 in 2019.
2GO Group President and Chief Executive Officer Frederic C. Dybuncio said, “The pandemic depressed consumer confidence and demand, which in turn weakened the business volumes overall, affecting all our businesses.”
On March 19, Davao-based businessman Dennis A. Uy’s Chelsea Logistics and Infrastructure Holdings Corp. announced that it was selling its entire stake, around 31.73%, in affiliate 2GO to SM Investments Corp. (SMIC) at P8.50 per share.
Chelsea said proceeds from the sale will be used to repay the loan that it obtained to secure the majority stake in 2GO in 2017.
The company expects to complete the disposal within 90 days from signing of the agreement.
Chelsea President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a statement that the divestment will help the company recover from the pandemic crisis because it will no longer be affected by 2GO’s losses.
Chelsea has reported an attributable net loss of P3.31 billion for 2020, compared with a loss of P831.76 million a year earlier.
2GO Group shares closed 1.41% lower at P8.38 apiece on Friday. — Arjay L. Balinbin
