written report about sgv

8/10/2019 Written report about SGV

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SyCip Gorres Velayo & Co., also known as SGV & Co., is currently the Philippines' largest

multidisciplinary professional services firm with eight offices across the country. The Firm employs over

4,000 professionals from various disciplines delivering value-added services to over 5,000 esteemed

clients. We provide integrated solutions that draw on diverse and deep competencies in assurance, tax,

transaction and advisory services. We uphold the highest standards of quality. In fact, SGV & Co.

remains the only ISO 9001-certified professional services firm in the Philippines a distinction we have

maintained since 1996.

Our track record has remained unmatched in the region. We have accumulated invaluable

resources in our 67 years of operations - highly qualified and competent staff, state-of-the-art facilities

and an enviable international network.

SGV & Co. is a member practice of Ernst & Young, a global leader in assurance, tax, transaction

and advisory services. Worldwide, its 167,000 people are united by shared values and an unwaveringcommitment to quality. SGV & Co. and Ernst & Young make a difference by helping our people, clients

and wider communities achieve their potential.

As of 2012 SGV & Co. audits:

54 of the top 100 corporations in the

Philippines

396 of the top 1000 corporations in the

Philippines

7 of the top 17 universal banks

8 of the top 11 regular commercial

banks

4 of the top 8 savings and mortgage

banks

The top private development bank

21 of the top 32 holding companies

8 of the top 14 life insurance

companies

4 of the top 6 non-life insurance

companies

The top credit card company

The top investment company

The top 3 landline services providers

The top 3 mobile telecommunication

services providers

The top 2 television broadcast

companies

The top 3 resort hotels

3 of the top 6 resort hotels

5 of the top 9 fast-food chains


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8 of the top 12 real estate companies

buying, selling, renting, leasing and operating

owned or leased property

19 of the top 22 real estate companies

buying, developing, subdividing and selling

19 of the top 36 manufacturers of

semi-conductor devices and other electronic

components

At present, the SGV team is composed of 83 partners, 4,000 professional staff, and 167,000

people are united Worldwide by shared values and an unwavering commitment to quality. And we are

pleased to say that among those, about 150 of the top CPA placers in the last six years joined. Also about

200 of our partners and staff have postgraduate degrees, a number from foreign universities, including

University of Pennsylvania, Northwestern, Harvard, Columbia, NYU, Fordham, IMD, INSEAD and

London Business School. And lastly, about 380 of our staff have been seconded to foreign offices.

Equipped with these people, we are proud to claim that we are ranked No. 1 in Audit services and Tax

services among professional services firms.

The History of SGV

In 1946 marked the beginning of SGV & Co.s history. At the time when the Filipinos were

preoccupied with rebuilding the country after World War II, Washington SyCip, armed with a keen

business sense and a vision for this country, opened a one-man accounting firm. At that time, the

Philippine accounting profession was dominated by foreigners, as the country was just starting to rise

from the ruins of war.

As the number of satisfied clients grew due to Washs unparalleled dedication to the profession to

provide the highest quality of service to his clients, Alfredo M. Velayo, a boyhood friend with whom

Wash shared his dreams, and Vicente O. Jose, an accountant with copious experience in tax work, were

taken in as partners in 1947. The new partnership gave birth to SyCip, Velayo, Jose & Co. . The three

partners assumed different functions in the Firm. Wash saw to setting up the long-range policies and plans;Fred oversaw day-to-day operations; and Enteng became the one-man Tax Division.

In the following year, the Firm embarked on its first overseas engagement, heralding the Firms

forays into several other countries. Working in foreign offices gave staff the chance to hone their skills,

competence and experience in dealing with different cultures. To service more clients outside Manila at a


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lower cost, the Firm opened its first branch office in the southern city of Cebu. Five years after Wash set

up his one-man office, the Firm had grown to 26 people.

The Firm pioneered the Filipinization of the accounting profession. The first step taken to achieve

this end was to work out a merger with Henry Hunter Bayne & Co. (HHB), a firm which started its

practice in the country in 1906. It was in 1953, Thomas Farnell, a senior partner of HHB, decided to

return to his homeland and sell his practice to two Filipino accountants Arsenio Reyes and Ramon J.

Gorres. After a series of negotiations between Wash SyCip and the two distinguished gentlemen, the two

firms merged to form the largest accounting firm in the Philippines. From this relationship, SyCip, Gorres,

Velayo & Co., the Firms current name, was derived.

To ensure the continued development of its workforce, and to fill the gap between the academe

and actual practice, SGV began a manpower development program through training and scholarships.

This is due to the demands of business and the need for professionals with world-class capabilities. Thus,the firm established the Research and Training Division.

In 1962, through mutual acquaintances, Wash SyCip met with T.N. Soong who owned a public

accounting firm in Taiwan. The two gentlemen soon discovered that they had common ideas on the role

of accounting firms in economically developing countries. Taking advantage of an economic boom in

Taiwan in 1964, T.N. Soong & Co. and SGV joined forces by entering into a technical cooperation

agreement. The firms agreed to subscribe to the same high level of professional and ethical standards,

share professional materials, ensure uniform training programs, and consult with one another on matters

of mutual benefit to their practices.

As SGV continued to expand its practice in the country, it kept abreast of developments in the

international professional world. The Firm began correspondent relations with some of the leading firms

in the West, among them Arthur Andersen & Co., Ernst & Ernst, Haskins & Sells, and Arthur Young.

With this, the increase in people and facilities in the Manila office are seen which necessitated the Firms

transfer to a 14-storey building along Ayala Avenue in Makati, the new hub of business and finance in the

Philippines

Also, in 1966, SGV institutionalized its social responsibility by organizing SGV Foundation

(SGVF). To this day, SGVF participates in the upliftment of the industrial and management sciences

through financial support and grants for professional and research chairs, scholarships, and other

programs.


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Inspired by the success of the tie-up with the Taiwan firm and Mr. SyCips concept of a regional

organization of Asian professionals, Yukta Na Thalang & Co.the No. 1 accounting firm in Thailand

became a member firm of the SGV Group in 1967. Utomo Josodirdjos Kantor Akuntan Drs Utomo of

Indonesia also joined the Group in 1968, enabling the Group to participate in the bustling economic

activity in Indonesia. With that, SGV & Co. continuously grows its members internationally.

On the occasion of its 25th anniversary, SGV launched the Professional/Social Involvement

Program (PSIP). Through the PSIP, the Firm donated professional services to nonprofit, social and civic-

oriented organizations.

In 1972, Wash SyCip passed on his responsibilities as Managing Partner of the Philippine

member firm to two other partnersRoberto V. Ongpin and Rodolfo B. Jacob and focused on his task

as Chairman of The SGV Group. Each member firm progressed by setting up a consulting practice,

establishing more branches, offering a broader range of services, upgrading facilities, and expanding itsworkforce. During this period, the total number of personnel in the SGV Group reached 2,600 before

peaking at 4,000 in 1983. To coordinate and streamline the different services provided to its client base,

SGV developed the total team service approach. Major client groups were identified and teams of partners

from all divisions developed service plans for each group.

During this period, The SGV Group gained accreditation from the World Bank, the Asian

Development Bank, and other similar institutions. The Groups accreditation may be attributed to its

intensive involvement in International Development Projects (IDPs) in non-SGV Group member

countries. One such IDP was the South Nyanza Sugar Project in Kenya in 1976.

By 1976, the member firms of The SGV Group located in the Philippines, Taiwan, Thailand,

Indonesia, Malaysia, Singapore, Korea and Hong Kong constituted the biggest network of nationally

independent professional firms in East Asia.

In 1978, the SGV Development Center was inaugurated. It housed an array of modern facilities

utilizing an open plan concept for office space. Among its features were a computer center and expanded

training and audio-visual facilities. The Center became a popular site for a variety of activities including

public seminars and numerous internal training programs for the Firm. The Center also became the home

of the Institute of Advanced Computer Technology (I/ACT) which was established by SGV in affiliation

with the Control Data Corporation of the US. I/ACT became one of Asias leading organizations in the

field of computer training. Industrialization in most countries in East Asia paved the way for The SGV

Group to establish and formulate tie-ups with reputable organizations. These links enabled The Group to

enter markets it has not previously tapped. It was in this period that the full range of services (audit,


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management consultancy, tax advisory) was offered by most of the member firms to their clientele. By

this time, The SGV Group had firmly established itself as a strong regional organization and had acquired

a reputation for quality, excellence, and professionalism. It was more than ready to undertake expansion

beyond East Asia.

Although SGV partners had participated in international forums, on an ad hoc basis for 30 years,

it was only much later that their presence began to be identified with The SGV Group. Beginning 1977,

The SGV Group religiously sent a contingent to periodic conferences of the ASEAN Federation of

Accountants, confederation of Asian Pacific Accountants, ASEAN Chamber of Commerce and Industry,

and the Pacific Basin Economic Council. SGV maintained a high profile at such gatherings as partners

often occupied prominent positions. In 1982, Wash SyCip was elected president of the International

Federation of Accountants (IFA). He was IFAs first Asian president.

To be more responsive to the increasing sophistication of client requirements and the influx ofnew investments, SGV established its Project Development Services Group. And as their clients industry

base widened, the Firm adopted an Industry Specialization Program. The Program was aimed at

developing competency in different areas by compiling and disseminating relevant information, setting up

specialized training programs and materials, and establishing relationships with leading practitioners from

each industry.

R. Navarro left SGV in 1992 to become Secretary of Trade and Industry under the term of Former

President Fidel V. Ramos. Gloria L. Tan Climaco succeeded him to become the first female Chairman

and Managing Partner of SGV. During her term, she led SGV in finding new applications for its expertise

and challenged innovation from everyone. SGV was successful at offering consulting services in new and

challenging areascomplex financial audits, mergers and acquisitions, debt-to-equity swaps, revolving

trade facility arrangements, recapitalization, capital structuring, BOT projects, IPOs, asset securitization,

privatization, and foreclosure and bankruptcy proceedings. SGV was the first in the industry to provide

corporate finance consulting and contract financial management.

The year 1996 marked the Golden Anniversary of the Firm. A milestone for the history of the

Firm, the 50th anniversary was punctuated by month-long celebrations including a grand alumni

homecomingand the release of the SGV 1946-1996: A Gold Record book. But what made the event

most poignant was the announcement of Washington SyCips retirement. After 50 years of nurturing and

molding the Firm into the respected and exceptional institution SGV has become, Washington SyCip

turned over the reins of managing the Firm to the new breed of SGVeans.


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The year 1996 heralded the start of Carlos R. Alindadas term as Chairman and Managing Partner.

This period in the Firms history was a witness to economic and political upheavals as the world grappled

with the challenges of a New Economy, and as the Asian financial crisis impacted on all sectors and

businesses in the region. The Firm met these challenges head-on. Resilience, consistency and dedication

were the elixir of SGV, as the years marched on.

With the aim of further broadening its ability to provide impeccable service to its clients, the Firm

became a member firm of Ernst & Young Global (EY) on 6 June, 2002. This created a powerful synergy

between SGVs well-known culture of integrity, professionalism and excellence and EYs global network

and dynamism, forging a strategic partnership that would champion a two-fold vision and strategy of

People and Growth, building on SGVs forward-looking strategy and strengthening local and

international ties. It was at this time that the Firm consolidated its countrywide network into eight

branches, servicing key growth sectors in Bacolod, Baguio, Cagayan de Oro, Cavite, Cebu, Davao,

General Santos and Makati.

In 2004 Mr. Purisima left SGV to join the Department of Trade and Industry and was succeeded

by David L. Balangue as Chairman and Managing Partner. It was during this time that the countrys

reporting standards converged with international rules through the adoption of the Philippine financial

Reporting Standards (PFRS). Mr. Balangue was a member of the Philippine Interpretations Committee,

which aided local companies in the process of implementing PFRS. In the same year, the Alfredo M.

Velayo School of Accountancy was founded at the University of Santo Tomas. And in 2006, SGV

celebrated its 60th year anniversary with a growing family of 75 partners and nearly 2,000 staff. Thisnumber would soon be overshadowed by even more rapid growth and expansion.

2007 marked the completion of the Washington SyCip Park, a gift from the partners and

principals to Mr. SyCip on the occasion of his 88th birthday. It also marked the Firms growing focus on

sustainability and corporate responsibility, the personal advocacy of Cirilo P. Noel, who succeeded Mr.

Balangue as Chairman and Managing Partner of SGV in February 2010.

Mr. Noel believes strongly in the virtue of stewardship. He often emphasized that, as a good

corporate citizen, SGV needed to do its part in promoting environmental responsibility, nation-building

and personal wellness. In conjunction with global EY initiatives, SGV undertook programs to reduce

waste, promote sustainability and encourage staff participation in such projects as Gawad Kalinga Village

88, Earth Hour, the SGV Fun Run and many others.


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It was during this period that Ernst & Young also firmed up its global structure, realigning

practices across 15 countries, including the Philippines, into a single Far East Area. This would later

evolve into the EY Asia-Pacific Area.

Believing deeply in the outstanding capabilities of Filipino professionals, SGV officially

established the Asia-Pacific Talent Hub (ATH) in 2010 as a cross-border teaming resource. The ATH not

only provides local staff with quality training and international client experiences, it simultaneously

provides global EY colleagues and clients access to a greater pool of skilled, world-class talent. In 2011,

the ATH grew to a team of 186 professionals servicing over 65,000 clients around the world, including

Hong Kong, Singapore, Malaysia and Australia.

In 2011, SGV marked its 65th year anniversary as well as Mr. SyCips 90th birthday with a series

of events and milestone projects that would further enhance the Firms contributions to the country.

Stronger than ever with 83 partners, 3,100 staff and over 5,000 clients, the Firm focused on expanding itshorizons globally, responsibly and even historically.

Guided by Mr. Noels commitment to stewardship, the firm continued to make a difference in the

country and its diverse communities through several remarkable projects, many of which were channeled

through the SGV Foundation. These include making a donation through the Synergeia foundation to build

90 playgrounds in elementary schools around the country, sponsoring 90 semesters of scholarships for

teachers, turning over Gawad Kalinga Village 88 to its new homeowners, building primary school library-

classrooms with the AGAPP foundation, sponsoring a fund-raising Fun Run for staff and clients, and

hosting a stunning performance of Crisostomo Ibarra by Ballet Philippines at the Washington SyCip

Park to help promote the arts.

And since stewardship also includes preserving SGVs legacy, the Firm founded the SGV

Museum to serve as a repository for its rich traditions and history over the decades. The facility is located

at the penthouse of the Shang Grand Tower on Perea Street. It includes a memorabilia room, a room

dedicated to Mr. SyCip, meeting rooms, and interactive modules on SGVs history and Mr. SyCips life.

It also serves as a gallery to showcase the SGV Foundations collection of fine paintings and artworks.

To accommodate the growing complement of SGV professionals, the firm moved to new and

larger offices in Cebu and Davao. In Makati, several teams were also relocated to the nearby iAcademy

building and National Life Insurance building. This expansion was yet another testament to SGVs size

and strength as the industry leader in the country.


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The Structure of the Organization


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Cirilo P. Noel

Chairman

Managing Partner

Vic is a CPA and Lawyer. He is a current governor of managing

Association of the Philippines, a trustee of Philippines Business Education and

the president of Harvard law Alumni Association of the Philippines

J. Carlitos G. Cruz

Vice Chairman

Deputy Managing Partner

Itos is a member of the Association of Certified Public Accountants in

Public Practice and Philippines Thailand Business Council.

Winston A. ChanAdvisory Services Head

Winnie is a CPA, Certified Information System Manager (CISM) and Certified Information

System Auditor (CISA).

He has over 22 years of experience in program/project management advisory and finance

transformation advisory.

Advisory Scope

Focuses on helping clients to improve their performance and manage their risks more

effectively.


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It is about working with clients to address their specific circumstances, thus turning

strategy into reality.

It spans an all types of clients across the a wide range of industries

Advisory services:

Customer relation

Finance

Internal Audit

IT Advisory

IT Risk and Assurance

People and Organization

Program Management

Risk Management

Supply Chain

Performance Improvement

Helping many of the worlds leading organizations to improve their performance while

engaging to our focused competency groups will improve your skills even more.

Working with other organizationRisk in particular will give you experience with a diverse

range of clients and projects.

Gemilo J. San Pedro

Risk Management Head

Gemil is also the Professional Practice Director and serves as PPD and Q&RM

leader of this firm.

He is experienced to provide public accounting need for finance, power generation,

manufacturing and telecommunications.

Risk Management Scope


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Being a risk professional, your role is to deliver some of significant and class leading internal

audit and risk engagements globally.

Being teamed with the performance improvement professionals, youll gain experience to

become an exceptional risk advisor.

Other Advisory Services

Information Technology Risk Assurance- help clients to leverage technology to

achieve a competitive advantage

People and Organizational Change- develops a clear and concise vision of the

future parts of all of their organizations

IT Advisoryaligns client technology to their people and processes

Program Advisory- helps clients assess and manage large scale programs on time

and within budget.

Cross- Advisory Teamsworks as advisory professionals with specific technical

skills

Strategic Direction- translates corporate strategy and business insight into reality.


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Wilson P. Tan

Assurance

Wil is the firms representative to the Philippine Interpretations Committee which assists

the FRSC in the Philippines in establishing financial reporting policies.

His audit experience covers imdustries such as banking, telecommunication, electric power

generation, and food manufacturing.

Assurance Scope

Aims to provide peace of mind to clients in validating financial statements and business-

critical information of processes.

Restores and maintains public confidence in the worlds capital markets and ensure that

fundamentals are in place for business to move forward.

Assurance Services

Audit and Accounting

-As an audit professional, youre focused to provide services responding to regulatory

reforms, managing the capital life cycle and improving business operations

Fraud Investigation and Disputes

-dealing with the complex issues of fraud, regulatory compliance and business disputes

that can otherwise detract the clients from achieving their companys goals by working

with a multidisciplinary team skilled with fraud assessment, monitoring and prevention.

Financial Accounting Advisory

-keeping in pace with changes in IFRS conversion, mergers, acquisitions, carve outs and

IPOs

Climate Change and Sustainability


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-understanding business and regulatory threats and opportunities and help explore

commercial transactions.

Wilfredo U. Villanueva

Tax and General Counsel

Wil is a member of Integrated Bar of he Philippines.

His expertise includes tax advocacy with the Bureau of Internal Revenue and represents

clients before the Court of Tax Appeals

Tax Scope

Navigates the complexities of international tax by providing insights, advice and guidance to

clients in todays tax regimes

In depth technical knowledge, excellent client relationship, and intellectual rigor and

stamina in creating tax strategies qualifies one.

Tax Services

Business Taxservice offering such as business tax advisory

and compliance and tax accounting and risk advisory

Human Capitalassisting clients to manage their global

workforce and to deliver operational improvement such as

o Assignment Services

o Global Immigration

o

Payroll Performance Services


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Indirect Taxassisting clients that trade goods and services

nationally and internationally.

International Tax- supporting clients cross border transactions,

assessing their international tax and providing them with a range of tax services.

Transaction Tax- advising companies and private equity

investor on all tax aspects in every transaction that has tax implications

Renato J. Galve

Transaction

Rene is a member of American Chamber of Commerce and Philippine institute of Certified

Public Accountants (PICPA)

He works on commercial and financial due diligence work and related transaction

consulting and advisory services on mergers and acquisition.

Transaction Scope

Advising businesses on how the will preserve, optimize, raise and invest their capital to help

them achieve their strategic objectives.

Working worlds largest organizations, fastest growing companies and private equity firms

is part of the transaction service


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Transaction Services

M&A Advisoryhelping organizations strategically manage

capital and transactions within an extensive global network.

Project Finance- evaluating different ways of delivering

projects, develop financial models and negotiate funding to secure competitive terms.

Restructuring- helping companies from financial threats

across the whole economic cycle by improving working capital management

Operational Transaction Servicesintegrating plans to

maximize synergies and financial benefits from transactions with intricate knowledge of the

organization involved

Transaction Real Estate-developing capital market strategies

for acquiring or disposing of real estate both the private and the public sector.


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Transaction Support- helping clients achieve their strategicgoals across the transaction life cycle from strategic assessment to implementation.

Transaction Tax- advising companies and private equity

investor on all tax aspects in every transaction that has tax implications

Valuation and Business Modellingdeveloping business and

financial models to structure a business or a new venture using sophisticated modelling and

quantitative analysis techniques.

Industries

Working directly with clients around the world to meet them their goals.

Allowing you to focus on a particular business sector or develop clear points of view across

a range of different sectors where the clients operate to deliver them insights.

Pooling knowledge with other talented colleagues to anticipate market trends, identify

implications for our client and develop views on how they should response.


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Industrial Services Areas

Automotive

Oil and Gas

Consumer products

Power and Utilities

Government and Public sector

Private Equity

Real Estate


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Life Sciences

Technology

Media and Entertainment

Mining and Metals

Telecommunications

Financial Services Areas

Asset managementassisting asset managers and service providers in

managing business growth, reducing risk, providing transparency or preparing for regulatory

scrutiny

Banking and Capital Markets- helping banks and security firms manage

risk effectively while satisfying an array of divergent stakeholders


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Insurance- addressing risk management approaches towards complex and

regulatory issues.

Support Services

Helps manage the transformation of our business in delivering our strategy of change around the

global organization.

Areas include:

Financeresponsible for our organizations financial integrity and

the clear reporting of the results with accuracy, consistency and compliancy with global

financial policies.

Information Technology- enhances IT infrastructures by equipping

employees with effective and efficient IT tools and services.

Human Resourceprovides the program, measures and tools that

helps employees achieve their goals. It includes performance management, leadership

development, training, recruiting, new-joiner orientation etc.


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Knowledge and Business Developmentmakes sure that the client

serving professionals have the access to right people, tools, and information to help their

clients meet their needs

The Vision and Mission of SGV & Co.

The Values of SGV

People who demonstrate integrity, respect and teaming

People with energy, enthusiasm and the courage to lead

People who build relationships based on doing the right thing

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