SEC ordered the revocation of Filsyn’s registration of securities for its failure to file its audited financial statements for 1996 on time despite repeated demands from the corporate watchdog.
Filsyn corporate secretary Cirilo Tolosa explained that external auditor Sycip Gorres Velayo & Co., assumed the responsibility of submitting to the SEC on due dates the required reports under the Securities Regulation Code, which includes audited financial statements.
"Inasmuch as the responsibility for submitting on due dates the audited financial statements is that of SGV, Filsyn’s long standing external auditors for several years and up to the present, we respectfully submit that Filsyn should not be penalized for SGV’s failure and omission, especially since Filsyn was not aware of such failure or ommission," Tolosa said.
SGV submitted to the SEC only the audited financial statements of Filsyn for the years ended Dec. 31, 1992 to 1995 and for 1997.
Filsyn also asked for the reduction of the P2.14 million penalty assessed by the SEC.
Incorporated in 1968, Filsyn is the only producer of polyester in the country. Its supplies polyester fiber and yarn, a major raw material requirement of the textile industry.
Listed as officers and directors of Filsyn are Patricio Lim, Johnny Shih, Champion Lee, Florentina Herrera III, Bienvenido Araw II, George Go, Alfonso Yuchengco III, Douglas Hsu, Ben Tzao Cheng, Felipe Yap, Renato Diaz, William Johnson, and Ruben Fruto.
The PSE is now reviewing whether it should delist Filsyn from the roster of traded stocks considering it has been insolvent over the past years. Shares of the company were last traded on March 29, 2000, closing at P3 per share. – Zinnia Dela Peña