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2GO

2GO Group Inc. is the largest logistics provider in the Philippines, operating brands like 2GO Travel, 2GO Freight, and 2GO Express. A special audit of 2GO's financial statements from 2015-2017 revealed that earnings were inflated by over $20 million in the prior two years. The audit found accounting inconsistencies with Philippine financial reporting standards. The SEC may investigate both company finance officials and its external auditor for any fraudulent misrepresentation or non-compliance with reporting rules. The company's new leadership ordered the audit and restated financials to ensure accurate financial reporting going forward.

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Reimar Villanueva
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924 views22 pages

2GO

2GO Group Inc. is the largest logistics provider in the Philippines, operating brands like 2GO Travel, 2GO Freight, and 2GO Express. A special audit of 2GO's financial statements from 2015-2017 revealed that earnings were inflated by over $20 million in the prior two years. The audit found accounting inconsistencies with Philippine financial reporting standards. The SEC may investigate both company finance officials and its external auditor for any fraudulent misrepresentation or non-compliance with reporting rules. The company's new leadership ordered the audit and restated financials to ensure accurate financial reporting going forward.

Uploaded by

Reimar Villanueva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMPANY PROFILE

 2GO Group Inc. is the largest, premier logistics provider in the


Philippines. The group owns and operates successful brands such as
2GO Travel, 2GO Freight, 2GO Express, and 2GO Logistics, offering
an array of logistics and travel services.
 2GO is an integrated transport solutions provider. The Company
adopted the brand 2GO as its flagship brand for its three core
business units, namely,
 2GO Freight, which handles commercial and personal shipping
needs;
 2GO Travel, which integrates passenger ships and fast ferries
through land and sea multimodal transport linkages; and
 2GO Supply Chain, which handles logistics, distribution,
warehousing, and inventory management.
 The Company is engaged in the movement of people
for passage business and cargo business. The group
maintains joint venture partnerships with renowned
global supply chain companies such as Kerry ATS
Logistics, Hapag Lloyd and Hansa Meyer - ATS Projects.

 The2GO name embodies a proud legacy of leadership


and service built on 148 years of shipping and logistics
experience. According to them, the unique work ethic
remains unchanged.
 2GO Travel is one of the largest sea travel providers in the
Philippines that provides comfortable and secured
transport between major destinations across the
archipelago. Its ability to guarantee convenient and
affordable sea travel experience has helped 2GO be the
preferred means of sea travel by Filipinos. Mr. Parco said
that in 2017, 2GO Travel moved a total of 4.5 million
passengers, which comprised the 90% of the total market
share.
 2GO is streamlining its operations and is continuously
seeking ways to improve its services.
BOARD OF DIRECTORS
 Mr. Dennis A. Uy is the Chairman of the Board of
Directors of 2GO Group, Inc. 
 He is also the Founder, Chairman, and Chief Executive
Officer of UDENNA Corporation, a holding company with
a diverse business portfolio, including interests in
petroleum, retail and distribution, shipping and logistics,
real estate development, infrastructure, education,
leisure and gaming, and telecommunications.

 Mr. Francis C. Chua is the Vice Chairman of the Board of


Directors and an independent director of 2GO Group, Inc. 
 He served as director of various companies and academic
institutions and was conferred several awards by different
organizations.
 Mr. Frederic C. DyBuncio is the President/Chief Executive Officer and a
director of 2GO Group, Inc. and SM Investments Corporation. 
 Prior to holding the post, he was a career banker who spent over 20
years with JP Morgan Chase and its predecessor institutions. During
his stint in the banking industry, he was assigned to various
executive positions where he gained substantial professional
experience in the areas of credit, relationship management and
origination, investment banking, capital markets, and general
management.

 Atty. Elmer B. Serrano is the Corporate Secretary/Corporate


Information Officer and a director of 2GO Group, Inc.
 Recognized as an elite “Leading Individual” in Banking & Finance
 Mr. Serrano is a Certified Associate Treasury Professional (2017)
and was among the top graduates of the Trust Institute of the
Philippines in 2001.
 Ms. Ma. Concepcion F. de Claro is a member of the
Board of Directors of 2GO Group, Inc., Udenna
Corporation, Conti’s Holdings Corporation and
subsidiaries, Phoenix Petroleum Philippines, Inc. and
subsidiaries, South Pacific, Inc., Enderun Colleges, Inc.,
and Sagittarius Mines, Inc. 

 Amb. Raul Ch. Rabe is an independent


director of 2GO Group, Inc. and is a
member of the Board of Directors of
Minergy Manila, Cagayan Electric Power
and Light Company, Inc., and Vivant
Corporation. 
 Mr. Chryss Alfonsus V. Damuy has been a member
of the Board of Directors of 2GO Group, Inc. since
2018 and of Chelsea Logistics Holdings Corp. since
its incorporation, and was consequently appointed
as its President & CEO on March 2017.

 Atty. Joseph C. Tan is the lead independent


director of 2GO Group, Inc. and the Founding
Partner of MOST Law Firm from September
2006 to present.
MAIN ISSUE

2GO Financial
Statement Scandal
 2GO has undergone special audit conducted by SyCip Gorres Velayo &
Co. with the request of the new president Mr. Denis Uy and new set of
board of directors and it showed that there is alleged inflation of
financial statements since 2015.
 The audit revealed certain accounts in the previously audited
financials required restatement, and the new management, with the
support and approval of the newly elected members of the audit
committee and the board of directors, agreed to restate prior period
financial statements to reflect fairly the state of the business.
 The reputation of KPMG RG Manabat & Company is on the line over
alleged inflated financial statements of 2GO Group Incorporated,
which are now being investigated by the Securities and Exchange
Commission.
 The restated financial results shaved off 90 percent
off the company's net income in 2015 to P109.131
million, from P1.08 billion as the 2Go earlier reported.
 The company also restated its 2016 net income to
P344.035 million, or 74 percent lower than the P1.34
billion as reported earlier by the company. 2GO said
its first quarter 2017 results should have indicated a
net loss of P264.86 million, contrary to an earlier
reported net income of P267.562 million.
 Thereview conducted by SGV & Co. revealed that the
shipping firm had inflated its earnings by P1 billion in the
past two years.
 Underthe Securities Regulation Code, the SEC is mandated
to ensure that investors receive accurate and timely financial
and other significant information concerning securities being
offered for the sale to the public
 Rule 68 of the Securities Regulation Code also requires publicly-held
companies to file financial reports that are accurate, truthful, and
complete and prepared according to a set of Internationally Accepted
Principles of Accounting.
 According to the SEC Chairperson, the financial statements originate
from the company’s finance officials , the company’s finance
officials will also be held liable aside from external auditors, if
proven there is fraudulent misrepresentation, or even deficiencies,
meaning that the official failed to comply with the international
financial reporting standards under Rule 68.
CONCLUSION
 Based on the judgment about quality of
accounting principles, SGV and Co. disclosed that
the accounting principle used by 2GO are in
compliance with the Philippine Financial
Reporting Standards.
 Theanomaly was then discovered under their new
leadership
RECOMENDATION

 The company should comply with the General Accepted


Accounting Principles especially to its principle of sincerity
and prudence. The action made by the President and Board
of Directors was right to ensure that the company engage in
fair presentation of the financials and accountabilities in
the said company.

 The people dealing with the finance of a certain company


should take into consideration the public interest; inform
the public perception in deciding whether to accept or
continue .
Previous financial Statement

https://www.2go.com.ph/wp-content/uploads/2019/06/2GO-Definitive-Informatio
n-Statement-2019.pdf
Latest News
 2GO SuperCat is once again named the BEST SEA TRANSPORT in ORMOC
CITY
- 2GO SuperCat remains to be the country’s premiere fast craft.
SuperCat has always been known for its excellent customer service, safety
standards and comfort. Today, SuperCat continues to look for ways to
improve its service and offer great experience for every passenger.
 2GO Group Wins in Prestigious ASEAN Corporate Governance Awards
- were among the top performing companies in the Philippines out of a
total 48 publicly-listed firms recognized under the ACGS and for their
continued efforts to raise the level of compliance with the ASEAN
corporate governance principles.

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