Advanced Procurement Management Series

The fnancial health of a Supplier is important to any procurement situation. The larger the contract, the more
critical the purchase, or the longer term of the agreement, the more important it becomes.

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For registration and enquiries, please contact our Program Manager KENNETH :
Email : kenneth@proedgeglobal.com Tel : +603 2116 5671 Fax : +603 2116 5999 Web : www.proedgeglobal.com
K n o wl e d g e i s E mp o we r i n g
Advanced Procurement Management :
Te Pre-Qualication
- Financial Analysis of Suppliers
A practical and hands-on training from the
No.1 Fraud Buster in Asia Pacic region :
9
th
& 10
th
April 2014
Parkroyal Hotel, Kuala Lumpur
You might be wondering why we are inviting the Number 1 Fraud Buster on
Procurement Fraud to discuss fnancial analysis of suppliers, the answer is what you
fnd in your analysis of the Suppliers fnancial health can have a material impact
on your procurement decision. Knowledge of Suppliers fnancial health may show
the need for additional terms or requirements need to be added to your contract
to protect against the fraud risks you have in using them. It may also provide you
with information that you can use as leverage as part of advanced negotiation to
gain concessions.
In order for the participant to understand the all these issues on procurement, we
have invited ACFE Regent Emeritus Tommy Seah to conduct this premier program
on the fnancial pre-qualifcation of suppliers. This is a very fast moving and thor-
oughly enjoyable presentation. Not a dull moment. There is no pre-requisite of
fnancial knowledge other than a desire to have a grip on the subject matter.
Participants must not be confused between prequalifcation and a tender for a
contract. The two are not the same and the difference between the two is ex-
plained here. Prequalifcation is not a form of tendering. Prequalifcation when
used, precedes the tendering for the actual contract. Prequalifcation is used to
identify contractors who would be allowed to tender for certain contracts. There-
fore an advertisement for prequalifcation does not amount to an advertisement
of a tender for a contract because all the former does is allow those interested to
express their desire to be eligible to tender. Once a company is pre-qualifed for
a particular contract it is then eligible to tender for that contract. A frm applying
for prequalifcation has no expectation to be awarded any contract on the basis
of the application for prequalifcation. Its only expectation is that once it has been
approved for prequalifcation, then it is free to bid for the contract.
Prequalifcation therefore precedes the tender and an advertisement for prequal-
ifcation should not be confused with an advertisement inviting tenders for the
award of the substantive contract. Prequalifcation is not used for all contracts. In
fact, it is only used in certain cases where it is felt necessary to do so.
YOUR COACH :
Tommy Seah
FCPA, FAIA, MSID, ACIB
Certifed Fraud Examiner (CFE)
Regent Emeritus, ACFE (Texas, USA)
Vice-Chairman 2006, ACFE
Board of Regents
Chairperson, CSI World Headquarters
World Class Financial Mgt. Expert
Double Firsts in Financial Management
and Accountancy (U.K.)
Chartered Banker, International
Accountant, Auditor, Investigator
Member of Advisory Board to SOX
Institute (N.Y.)
Another Event Proudly Organised
by ProEdge Global Sdn. Bhd.
(PSMB Registered
Class C Training Provider)
I NCL USI VE OF
Tommy Seahs
New Book on
Psychology of Fraud
for registered &
paid participants
before 13th Mar 2014
Advance Procurement Management

www.proedgeglobal.com
The vast majority of contracts are publicly advertised without the need for prequal-
ifcation which is often reserved for large contracts and those with requiring highly
technical expertise. One of the advantages of prequalifcation is to reduce the
need to evaluate unqualifed contractors. It is way of narrowing the feld to only
those who have the requisite ability to comply with the terms of the contract and
the fnancial capability to undertake the work.
Thus for certain contracts, particularly large contracts or those involving highly
technical work, a procurement entity will before advertising for bidders for the
contract, frst ask for invitations for pre-qualifed bidders. Prequalifcation allows for
unqualifed bidders to be weeded out and thus helps to speed up evaluation of
bids since only a limited number of pre-qualifed bids have to be examined.
This means that only those frms pre-qualifed would be eligible to bid on the con-
tract.
The prequalifcation is merely for companies to demonstrate that they have the
ability to undertake the work or supply of whatever it has to be sourced.
One of the most common problems with performing fnancial analysis of Suppliers
is when they are privately held and are simply unwilling to disclose their fnancial
information. When faced with that we may offer them three choices 1. They can
disclose under confdentiality agreement. 2. The procurement team will provide
them with certain ratios that we need them to have their Certifed Public Accoun-
tant certify that they are better than all of the individual ratios provided. 3. The
procurement team will either not source from them or will give them very limited
business as the risk cannot be quantifed.
The fnancial health of a Supplier is important to any procurement situation. The
larger the contract, the more critical the purchase, or the longer term of the agree-
ment, the more important it becomes. The reasons for that are simple. The better
the Suppliers fnancial health, the more likely the procurement offcer will be able
to reduce cost. Financially stable Suppliers will provide committed or improved
performance, and have predictable deliveries and performance. It is critical for
Procurement Offcers to invest signifcantly less time and effort managing fnan-
cially stable suppliers. Moreover using stable supplier should need fewer require-
ments to manage against performance risks. For example, with a Supplier that
is fnancially unstable, as protection you might need to negotiate licenses and
escrow in the event the Supplier starts to fail fnancially. The procurement offcer
might dual source the item, which will cost more because volumes are not maxi-
mized and because instead of having to manage one supplier the procurement
offcer ended up managing two.
Needless to say, the best suppliers will be proftable and will have sound fnancial
management. By reviewing the suppliers fnancial statements it allows the pro-
curement offcer to ask questions or learn information that will also be useful in
the negotiation. So like other aspect of prequalifcation the procurement offcer
need to not just look at whether or not they will be qualifed but should also be
considering the impact on cost and be looking for information that can use in the
negotiation.

Who Should Attend

Purchasing / Procurement Managers Supply Chain / Logistic Managers
Risk Management & Regulatory Managers Contract Managers
Buyer / Sourcing Managers Materials Managers
Chief Financial Offcers Chief Investigators Investigators
In-house General / Legal Counsels Legal & Compliance Managers
Internal Auditors & Audit Managers Finance Managers / Controllers
Accountants and Independent / External Auditors
Some of worlds
leading government
linked companies,
banks & fnancial
institutions staff
trained by Tommy :
Malaysian Airport Holdings Bhd
The Government Investment
Corporation of Singapore
The Stock Exchange of
Singapore
Deutsche Bank (participants
from 40 countries)
Westpac Banking Corp
Monetary Authority of
Singapore (Central Bank)
United Overseas Bank (UOB)
BNP Paribas
Bank of China (China-wide)
Hong Kong and Shanghai Bank
OCBC Ltd
Bank Negara Malaysia
MayBank
Bank Islam
TNB
Philip Morris
Bangko Sentral ng Pilipinas
Bursa Malaysia
Securities Commission Malaysia
UMW
F&N
and many more...
0830 Registration & Morning Tea
0900 Workshop Commences
1030 Refreshments & Tea Break
1045 Session Commences
1230 Networking Lunch
1330 Session Commences
1515 Refreshments & Tea Break
1530 Session Commences
1700 Course ends
Some Comments from
Past Delegates :
The subject matter was
well presented and at a
suitable pace. - Manager,
BNP Paribas
The way the program
was conducted - Lively -
Able to keep ones atten-
tion. - Head of Internal
Audit, Credit Lyonnais
Interesting, informative
and lively presentation -
Investigation Offcer, Inland
Revenue Board (IRB)

Course Schedule
For registration and enquiries, please contact our Program Manager KENNETH :
Email : kenneth@proedgeglobal.com Tel : +603 2116 5671 Fax : +603 2116 5999 Web : www.proedgeglobal.com
Program Outline Your Coach

Financial Pre-Qualifcation of Suppliers
requires a grip on the following :
Understanding Suppliers fnancial
statements
Analyse the fnancial health of a Supplier
Determine the fnancial health of Suppliers
using the structural approach to Balance
Sheet analysis
Determine the past performance of
Suppliers by understanding the contents in
the Income statement (P&L)
Calculate critical business performance
indicators and compare them against the
best in their industry and location.
Understand the limitations of a fully
audited, unqualifed fnancial statement
as of the end of the last fscal year, CPA
prepared.
Applying the data in Unaudited interim
fnancial statements
Using the Working Capital Cycle to
negotiate for a better term
Understand The opinion letter from the
CPA.
Understand the signifcance of Notes to
the fnancial statement to determine any
false or exaggerated statements
Understanding 5 most schemes in
Suppliers Financial Statement Fraud
Tommy Seah, FCPA, FAIA, MSID, ACIB,
The only Regent Emeritus of the Association
of Certifed Fraud Examiners (ACFE) within
the Asia Pacifc
Vice-Chairman 2006, ACFE Board of
Regents, (Texas, USA) World Headquarters
Chairperson, CSI World Headquarters
Chartered Banker, Accountant, Auditor,
Investigator, Fraud Examiner
Tommy is someone you will want to know in person. Not just
because he is the elected Vice Chairman (2005/07) of The
Association of Certifed Fraud Examiners Board of Regents
based in Texas, USA. Or the fact that he being the only Re-
gent Emeritus in Asia is very often referred to as the Number
One Fraud buster.
It is him that you want to know. It can very often be a defn-
ing moment for some and a life transforming moment for oth-
ers. He motivates you to do great thing without even trying.
Somehow your day become so much better just because
he is talking to you. It is not charisma. He is frank to the point
of being blunt. He is able to cut through all the smoke and
see things as it is. But being a practicing CFE which is is a
post graduate professional qualifcation recognized by the
FBI and USA Central Intelligence Agency in its recruitment of
auditors for combating fraud does not hurt.
His services in providing technical training is much sought af-
ter continuously by numerous banks in the region, including
Germany, Singapore, Malaysia, China, Indonesia, Philippines
and Taiwan.
Tommys previous experience includes systems based audit-
ing in an American International Bank, where he was the Se-
nior Regional Auditor responsible for the Banks audit in the
Asia Pacifc region. He has also held the top executive posi-
tion of Chief of Internal Audit in a prime offshore bank where
his audit duties cover the Singapore and Hong Kong opera-
tions of the bank. He covers all areas of the banks audit of
operations and IT systems. He also has practical working ex-
perience in the Operations Department of a foreign bank.
Tommy is the author of 8 banking books including The Key
to Malaysian Financial Institutions Compliance & Economic
Crime Requirements Published Online by John Wiley : 5 JAN
2012 DOI: 10.1002/9781118269213.ch71. His publications has
received excellent review and frst class commendation from
some of the most authoritative professional certifcation body
& top rated banks in the world. His latest 2014 publication is
The Psychology of Fraud Understanding Gender Bias.
For the past thirty years, Tommy Seah has trained some of the
top banks and fnancial institutions in the region. In particular,
his expertise in SOX 404, AML and Basel II systems implemen-
tation is much sought after by fnancial institutions and banks
in Germany, Brunei, China, Indonesia, Malaysia, Philippines,
Singapore, Taiwan and Thailand.
His prolifc training career has seen him trained over many
CFOs, Compliance Offcers, Auditors, Risk Managers, fraud
investigators, fnancial analysts, forex managers, IT Profes-
sional, legal counsels, private bankers and accountants.
Today, he is still a very much a hands on practitioner doing
Independent Third Party work for audit practice assurance,
compliance review & fraud investigation in the Asia Pacifc
Region. He is also a Certifed SOX Professional & appointed
as Professor of Economics of the CHINA Institute of Directors.
Advance Procurement Management www.proedgeglobal.com
Disclaimer
Due to the interactive nature of the learning session, the
sequence and contents of the program maybe vary accord-
ing to the needs of the participants. The speaker reserves
the right and the privilege to conduct the program in the
manner which he thinks to be in the best interest of the major-
ity of the participants. Please ensure that you understand this com-
pletely so as to prevent any form of unrealistic expectation and or
disappointment in a public enrolment program that was not
tailored to your specifc need.
Please inform the organizer in advance if you are not agreeable or
do not completely understand the above term and we will review
your enrolment accordingly.
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If you have a number of staff in your organisation who requires
training, ProEdge also offers fully customised inhouse training
programmes.
To fnd out more, please contact Kenneth on (+603) 2116 5671 or
email kenneth@proedgeglobal.com for more information.
Important Notice
1.Fees are inclusive of program materials, lunch, refreshments & certifcate.
2.Payment Terms: Following completion and return of the registration form, full payment
is required within 5 days from receipt of invoice. PLEASE NOTE: Payments are required
with registration and must be received prior to the Coaching Session to guarantee your
place. Walk-in delegates will only be admitted on the basis of space availability at the
Coaching Session and with immediate full payment. Due to limited conference space,
we advise early registration to avoid disappointment.
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will be made for cancellation received in writing 10 working days before the program
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is subject to change without notice.
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by ProEdge in connection with this event is expressly reserved and any unauthorised
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Investment
RM 3680 for two-day workshop
Early Bird Price - RM 3380 (RM 300 off from normal price)
(Payment & registration received before 13th March 2014)
Premier Group Discount - 15% off from normal price
for 3rd participant onwards from the same company.
Indemnity: Should for any reason outside the control of
ProEdge, the venue or speakers change, or the event be
cancelled due to an act of terrorism, extreme weather
conditions or industrial action, ProEdge shall endeavour
to reschedule but the client hereby indemnifes and holds
ProEdge harmless from and against any and all costs, damag-
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of Malaysia to the exclusive jurisdiction of whose Courts the
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Please Complete This Registration Form
And Fax It Back To KENNETH
on +603 2116 5999
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ProEdge Global Sdn. Bhd.
Suite 33-01, 33rd Floor,
Menara Keck Seng,
203, Jalan Bukit Bintang,
55100 Kuala Lumpur, Malaysia.
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Account number: 1246-0000-4621-01
Please quote our invoice No.
How To Register
Contact ProEdge Global on
Tel: +603 2116 5671 or +6016 338 9783
Fax: +603 2116 5999
Email: kenneth@proedgeglobal.com OR
brenda@proedgeglobal.com
Workshop Information
Date : 9th & 10th April 2014
Venue : Parkroyal Hotel,
Jalan Sultan Ismail,
Kuala Lumpur, Malaysia
BOOKING REFERENCE: KEN 3929
SALES CONTRACT

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www.proedgeglobal.com
Advance Procurement Management : The Pre-Qualifcation - Financial Analysis of Suppliers