Maintaining Your Trust

To grow and create value, your company must have the trust of its customers, lenders, and investors.

The integrity of your company’s financial information and the reliability and security of your technology are critical components in garnering this trust and gaining access to global capital markets. Whether you are managing issues associated with globalization, addressing technology vulnerabilities in the connected economy, or looking to assure the fairness of your financial information — SGV & Co. can help.

We have invested substantially in innovating our global, risk-based audit methodology and technology and knowledge enablers. All our auditors are equipped with our global audit process management and documentation tool. The methodology is supplemented by comprehensive standards and quality controls that are applicable to every client engagement.

External Audit

We provide independent assurance on financial and nonfinancial information to meet regulatory and other stakeholder requirements utilizing world-class business-process-based methodologies and supporting tools. Our Global Audit Methodology and Documentation Approach is a risk-based approach that focuses on the drivers of the business, the associated risks, and the potential effects on financial statements accounts, and delivers a consistent, high-quality audit anywhere in the world.

Compilation and Review Services

We provide compilation services by presenting in the form of financial statements information the representations of management (owners) without expressing any assurance on the statements.

We also provide review services by performing inquiry and analytical procedures that provide the Company with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles or, if applicable, with another comprehensive basis of accounting. This service generally includes limited review of interim financial statements.

Accounting Consultations

We assist companies in the proper applications of accounting principles and provide awareness of new accounting principles that will become effective. These services generally include reports on the application of accounting principles, reports on accounting position through technical research, and accounting updates seminars.

International Accounting Standards Conversions and Advisory

We assist companies in converting their present financial reporting system to International Accounting Standards (IAS) and in addressing accounting, auditing, and other reporting needs as well as other associated business issues. US Generally Accepted Accounting Principles (GAAP) Conversion We assist companies in converting their present financial reporting system to US GAAP and in addressing accounting, auditing, and other reporting needs as well as other associated business issues.

Regulatory Compliance

We assist companies in completing certain reporting requirements under existing rules and regulations of regulatory bodies such as the Board of Investments (BOI), the Securities and Exchange Commission (SEC), the Philippine Export Zone Authority (PEZA), and Bangko Sentral ng Pilipinas (BSP).

Extended Audit Services

We provide customized assurance services beyond the traditional external audit scope, such as services on branch project audit, audit of specific account, and fixed asset count.

Accounting Advisory and Consultation Services on Deal Structuring

We advise on the accounting impact of the deal structuring transaction on the financial statements and alternative treatments that might be relevant. This will assist companies in maintaining appropriate market valuation, managing financial reporting risks, understanding sources and timing of earnings and cash flow performance, and determining accounting impact of the transaction structure.

Due Diligence Work

We review financial information based on agreed-upon procedures, assisting acquirers/investors in determining factors affecting the price and post-acquisition financial issues and providing integrated support throughout the acquisition process.

Fraud and Investigative Dispute Services

• Fraud and Forensic.
We assist companies in preventing fraud by implementing fraud deterrence programs, as well as provide expert advice and assistance during fraud investigations.

• Assurance Support and
Extended Audit Services. We can provide you with experts to support your external auditor or for expanded operational audit coverage to allow your internal audit function to focus on completing its internal audit plan.

  » Strategic Risk Assessment.
     We assist companies’ top management in developing a summary of the key risks that
     must be properly controlled to optimize shareholder value and insights into how to best manage
     these risks.

  » Risk Management Transformation.
     We advise companies on how to improve existing risk management capabilities
     against leading practices.

Driven to Exceed Your Expectations

As today’s business environment becomes increasingly complex with a host of tax rules and regulations, it is imperative that businesses equip themselves with the best advice on these matters to compete effectively and efficiently.

NOW, more than ever, enterprises need to find new ways to align their tax strategies with their overall business needs, while meeting their compliance obligations wherever they arise. Our Tax Services can help you make these things happen by assisting you in identifying and implementing the best possible approach to all tax and business concerns.

Tax Compliance Review

Our tax professionals provide a diagnostic evaluation of a company’s tax position, practices, and procedures to determine whether they comply with Philippine tax laws. The objective of the undertaking is to identify potential tax exposures and recommend corrective actions.

Tax Planning Engagement

We help companies identify opportunities or areas where they can effectively generate tax savings within the parameters allowed by law. Tax planning can be made in the areas of regular and minimum corporate income taxation, fringe benefits taxation, etc.

Tax Due Diligence Review

We provide an investor with insights as to the potential tax exposures of an investee company to help determine the valuation to be attributed to the investment and thus, arrive at a sound and informed business decision.

Tax Advocacy/Controversy Work

We assist clients in liaising with the tax authorities for requests for rulings or opinions from the Bureau of Internal Revenue and the Department of Finance and in handling controversies and disputes arising from tax assessments. We can also represent enterprises in filing administrative claims for refund from the national and local governments as well as provide assistance in obtaining tax credit certificates from the authorities. We also provide assistance in the sale and/or purchase of tax credit certificates by handling and verifying the related documentary requirements as well as liaising with the tax authorities.

Litigation Support Services

We assist taxpayers who have claims for refund or who have tax assessments by providing a detailed review of the documents supporting their claims for refund or position against the assessments and presenting these to the Court of Tax Appeals. This helps facilitate the presentation of evidence in Court.

Investment Advisory Services

Our tax experts help prospective investors determine the most costand tax-effective vehicle/structure for Philippine inbound and outbound investments. We also assist in the related registration requirements. Likewise, we help plan and implement strategies to reduce tax liabilities for taxpayers doing business in multiple taxing jurisdictions. We can also help develop or review existing financial models for companies to ascertain the tax-implications of different alternatives being considered in the acquisition of investment portfolios.

General Advisory Services

We offer sound and expert advice on a wide range of tax matters such as those relating to corporate organizations and reorganizations, build-operate-transfer projects, joint venture agreements; various contracts and financial products; revenue legislation and rules, etc. We also provide advice and assistance with the registration and reporting requirements of government agencies relating to tax and/or investment incentives granted under various investment laws and regulations as administered by the Securities and Exchange Commission, Department of Trade and Industry, Board of Investments, Bangko Sentral ng Pilipinas, Philippine Economic Zone Authority, Clark Development Corporation, Subic Bay Metropolitan Authority, Local Governments, etc.

Transfer Pricing Services

We provide organizations with a professional assessment of whether their existing intercompany pricing policies comply with tax laws and regulations by reviewing existing transfer pricing methods and recommending the adoption of the optimal model. Likewise, we help formulate planning ideas to ensure that pricing policies comply with regulations in different taxing jurisdictions to reduce risk of double taxation and arrive at an optimal supply-chain structure. We also provide integrated, multi-country approach to meet substantiation requirements to efficiently document transfer pricing policies.

Customs Services

We provide Post-Entry Compliance Review, which can help companies prepare for a Customs audit and thus, minimize potential deficiency customs duties assessment and penalties. Likewise, we can also help business proactively plan future importations to minimize customs duties through our Pre-Importation Planning and Review Service. This will cover the determination of appropriate valuation and classification of importations to be made as well as other requirements to be complied with to ensure the release of the imported goods from the BOC. Moreover, in case of controversies and disputes with the BOC, our Customs Advocacy Service can provide organizations with the expertise and resources in effectively handling these matters. Our General Customs Service can likewise assist companies in securing the necessary permits, clearances, and licenses related to companies import requirements.

Contract Tax Services/Outsourcing

Our tax professionals can provide assistance in determining a company’s tax liabilities, preparing related returns, and remitting these taxes to regulatory agencies within the prescribed deadlines. As an alternative, our Staff Loan services can provide specialized tax expertise in a company’s office to extend real-time and responsive service to meet various tax needs.

Income Tax Return Preparation

We provide companies with expertise in the determination of compensationrelated tax and social security liabilities through our Payroll Outsourcing. The service extends to the preparation of employees’ and expatriates’ Philippine and US Tax Returns as well as in other reporting requirements to be submitted to regulatory agencies.

Estate/Family Wealth Planning

We offer advice on how to effectively reduce gift and estate taxes. We provide tax planning for wealth transfer and tax advice on creation of trusts, and prepare estate and donor’s tax returns.

Tax Seminars

We organize seminars to equip your people with a “Back to Basics” understanding of the Philippine tax system. Focus is on the principles and fundamentals of how various types of taxes operate with details on their implementation and administration. Included in the seminars are discussions on current issues to update participants with the latest pronouncements of various tax agencies. Other seminars also cover tax issues on local government taxation, how to handle claims for refunds and assessments, etc.

Integrity Is the Key

It is no longer surprising to read about once powerful and mighty corporations going into bankruptcy triggered by massive fraud and deception. Shareholders are now demanding business honesty and prudence in the discharge of corporate responsibilities. Regulatory agencies are promulgating stricter regulations, as well as prosecuting dishonest business executives. Without a doubt, these business events are also prompting the need for a more focused identification and management of business risks and the implementation of adequate business processes and systems that will protect and maximize shareholder value and restore confidence in the corporate world.

We provide a full range of services to enable companies to better manage risk and improve business processes. Our knowledge of regulatory requirements and the principles and practices of good governance, and strategic and business process risks and controls can help you ensure better risk coverage and process assurance. Let us help you as you navigate through this important new business order.

• • IT Risk and Assurance

    • • Enterprise Systems Risk Management

      We help organizations improve their overall business process effectiveness and efficiency, and maintain the integrity of information for management use through appropriate application security and controls. Our IT Risk Management and Assurance Services enable companies to conduct business confidently by improving the reliability of information used for decision making.

      • » Enterprise Systems Assessment.

        We help companies assess the overall effectiveness of business application systems implemented or for rollout to support key business processes. Our holistic approach covers both system functionality and end-to-end control and security aspects of the business system. As part of our IT Risk Management services, we also provide Revenue Assurance services to help companies assess their revenue management process, and design and implement effective revenue management systems that prevent leakages in the revenue processes.

      • » Enterprise Resource Planning (ERP) Integrity.

        We assist companies in assessing the overall effectiveness of ERP solutions (e.g., SAP, Oracle, JDE, Baan, and People Soft) that are in place or planned for rollout. Our holistic approach covers both system functionality and end-to-end control and security aspects of the ERP solution. Complementary to our ERP Integrity services, we also assist companies in the actual implementation and rollout of systems and procedures designed to enable and to support enterprise-wide goals and objectives. ERP implementation services are currently available for the following Tier 1 ERP Suite of Products: Oracle 11i and SAP R/3.

      • » IT Teaming/Outsourcing.

        We assist internal audit functions in solving resource needs by providing specialized IT audit resources for the execution of IT-related areas of the internal audit plan. We also help organizations assess and enhance their IT audit capability.

      » Business Analytic, Data Analysis, and Forensics.

      We help companies gather and analyze data from heterogeneous systems throughout the organization and convert these into meaningful information that can help management get a better view of how the different areas of the business are performing. Results can be used for business intelligence or investigative purposes. Our data analysis services are leveraged through the use of commercially available packaged analytic software. This strategy allows our clients to focus on key business issues rather than the underlying technology.

    • • Enterprise Security Management

      We help companies identify, source, and assess IT security risks within the context of business processes. We also help companies design, develop, and implement practical and cost-effective security strategy and infrastructure to manage IT security risks.

      • » Security Attack & Penetration (A&P)/Profiling.

        We help companies assess the effectiveness of the overall security infrastructure. We evaluate whether the existing security strategy, security function, security policies, processes, and solutions are consistent with the security vision/mission of top management. We examine baseline security controls over all technology layers: physical, network, platform/host, database, and application. This includes a review of system configuration, deployment, and incident monitoring processes.

        Done in conjunction with Security Profiling or as a separate project, we also provide Attack & Penetration Services to assess an organization’s exposure to internal and external IT intrusions. Through simulated attacks, we attempt to break into the company’s network infrastructure from all possible access points, external (Internet, dial-up) and internal (LAN, WAN). Our Enterprise Security Profiling/Attack & Penetration Services deliver detailed technical, procedural, and strategic recommendations to enhance IT security controls.

      » Enterprise Security Architecture Design.
      Using our comprehensive IT security framework, we assist organizations in designing their security infrastructure to address their security requirements and to promote a more secure IT environment. Our services include security strategy development, best practice information security policies/guidelines/standards development, security organization design, and secured network architecture design.

      • » Security Solutions Implementation.

        We help companies evaluate, select, and implement appropriate security solutions to address specific or enterprise-wide security requirements. Security solutions that we can help companies implement include Firewall (Balancing/Redundancy/Fail-Over), Intrusion Detection/Prevention, Secure Network Authentication, Server Access Control, Security Operations Management Portal, and PKI/VPN.

    • • IT Infrastructure Risk Management

      We help organizations improve the integrity, nimbleness, and cost-performance of underlying IT infrastructure that supports their key business systems and processes. We identify and help manage pervasive risks relating to the availability, performance, reliability, and cost-effectiveness of IT services.

      • » Technology & Strategy Alignment.

        We help companies align their information systems strategy with the overall business strategy. This alignment helps management avoid costly implications of business and IT misalignment and effectively deal with more important strategic issues. We focus on the business context as the key driver for all system requirements, and help management develop an Information System Plan that is practical and responsive to the needs of the business.

      • » Enterprise Systems Management Diagnostics.

        We examine the overall IT management processes and assess the maturity and effectiveness of critical IT infrastructure components: people, processes, and technologies. This service provides companies with an improvement agenda to more efficiently control pervasive IT infrastructure risks and IT costs, and to enhance the quality of IT services.

      • » Continuity & Availability.

        We help companies understand and manage business risks associated with failure or interruption of technology infrastructure resources and improve performance as it relates to business strategy and continuity. Specifically, we help organizations develop and implement their business continuity plans and IT disaster recovery plans to protect their IT service capabilities.

  • Performance Improvement

    • • Operational Performance Solutions

      We can provide you with structured and integrated resources and tools on an industry basis, bring the right people armed with relevant knowledge and technology to audit highly specialized processes, and deliver proven solutions.

    • • Employment Solutions

      SGV/Ernst & Young’s Global Employment Solutions practice helps organizations maximize the value of their investment in people by optimizing performance, reducing costs, and limiting risks. Our services include:

    • • » Organization Effectiveness.

        We assist companies in effectively managing employees by drawing up organization structures anchored on business strategies, designing jobs with clear duties and responsibilities and reporting relationships, and determining appropriate staffing patterns.

      • » Performance Management.

        We provide professional services on specific human resource systems that enhance employee performance such as job evaluation, competency modeling, performance management, and compensation and benefits.

  • Risk

    • • Internal Audit Services

      Our Internal Audit Services group delivers services using our business-process based audit methodology and related audit tools. We provide a broader, more effective risk coverage and align available resources with the company’s strategic objectives and risk through the following services:

    • • » Internal Audit Outsourcing and Teaming.

        Audit is not your core competency, but it is ours. Draw on our strength. Using our risk-based, process-focused audit methodology, we can deliver the full internal audit plan through outsourcing, or execute selected portions with a strategic teaming arrangement. We also assist in co-developing a strategic vision for the future that includes an action plan and time line.

      • » IA Transformation.

        If your internal audit function is good but could be better, let our expertise enable its transformation to leading edge. Specialized teaming services, knowledge sharing, and training could be part of your value-added solution.

      • » Business Process Risk Management.

        We utilize our business process-based methodology in improving current processes and developing recommendations to address business risks at the process level and/or to source the root causes of known performance gaps.

    • • Enterprise Risk Management

      Our professionals have led various risk management projects covering all aspects of an enterprise risk management framework, from risk assessment to full implementation. Our ERM team has enormous depth of experience in introducing risk management to a wide range of clients.

    • • Financial Services Risk Management

      In this fast changing business environment, we help identify opportunities to make your company nimble, better prepared, and effective in minimizing the impact of negative business events on your company’s financial position.

      • » International Accounting Standards (IAS) Conversion and Advisory.

        We help companies assess the impact of adopting IAS 39, and help formulate and implement required changes in hedging strategies, valuation methods, technology, accounting processes, hedge effectiveness, calculations, management reporting, and corporate communications.

      • » Corporate Treasury Risk Management Services.

        This service provides opportunities to realign or redefine the treasury structure to strengthen controls, improve information systems and other procedures (e.g., settlement), and ensure timely and accurate reports, among others.

      • » Treasury Systems Selection/Implementation.

        We help companies integrate treasury systems and workstations with treasury processes for efficient work flow design and effective control.

      • » Cash Management and Working Capital Review.

        We help companies assess existing structure/organization and processes in managing their liquidity requirements and identify areas for improvement based on best practices.

      • » Market Risk Management.

        We assist companies in improving, on an enterprise-wide basis, their capabilities to manage various market risks stemming from exposure to foreign exchange rates, interest rates, equity price risks, and commodity price risks.

      • » Credit Risk Management.

        We help financial institutions and nonfinancial companies understand and manage the risks associated with extending and managing credit to enable them to respond with greater confidence to opportunities and challenges in the business environment.

 
In a dynamic economy such as the Philippines’, growth is essential for your business if you are to stay ahead. Growth through transactions is a route chosen by many companies as they seek to take advantage of market opportunities. We appreciate that bold transactions are complex and daunting in scale.

Our professionals can help evaluate, structure, and execute the deal you need. No matter what the size of your company, where it is located or the business you are in, we specialize in providing transaction expertise at every step of the deal lifecycle.

Transaction Management

• Transaction Support and Transaction Tax.
We provide financial, tax, operational and commercial due diligence assistance to investors and companies. Our team can help you understand the true value of a target company, structure the deal from both a general business and a tax vantage point.

• M&A Advisory.
We provide strategic insights on transaction candidates and deals. Whether evaluating a buy- or sell-side transaction, we can help identify, negotiate, structure and close transactions to better connect transaction strategy with business strategy.

• Transaction Integration.
We help you to ensure the seamless blending of financial, tax, and legal elements of the transaction and help to capture the value identified prior to the acquisition.

Capital Management

• Corporate Restructuring.
We help companies and investors improve their total expected return in situations of deteriorating performance, growth and transformation.

• Non-Performing Loans.
We assist the designated NPL resolution team to develop overall resolution strategies.

Corporate Development Advisory

• Valuation & Business Modeling.
We can support senior management decision-making with independent and objective advice relating to M&A, divestitures, restructuring, strategy design and implementation, financial reporting, litigation and risk management. We can assist in the valuation of businesses, shares, intangible assets, capital equipment, and employee share options for a multitude of purposes.

Project Finance Advisory.

We assist clients in pursuing project finance endeavors by providing advice on securing approvals, structuring of the commercial and financial aspects of the transaction, identifying and approaching sources of funds, including the required credit enhancements.

Commercial Advisory Services.

We provide market and commercial advice to help you make the right decisions on strategic direction, whether organic or thru acquisition. These decisions are hinged on a strong understanding of the environment, industry, market, competitor, customer and operations. Our team will work closely with you in evaluating these factors and developing insights into your or your target’s business.