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FEU Investor Relations - Far Eastern University

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Aurelio Montinola III, 57, Filipino: Vice Chairman of the Board of Trustees, Far Eastern University, Inc.

January 21, 2003 to present)

Compensation of Trustees and Executive Officers

Nagal graduated from the Far Eastern University with a degree in commerce, majoring in accounting.

10 - Summary Compensation Table

Canilao Chief Financial Officer

Maliwat

Independent Public Accountant

  • OTHER MATTERS
    • Minutes of Annual Meeting held on August 25, 2007
    • Academic Report of the President, 2007 – 2008 and Annual Report of the Chair, 2007 – 2008
    • Ratification and Confirmation of the following
    • Election of Trustees and Independent Trustees for the fiscal year 2008 – 2009
    • Appointment of Punongbayan and Araullo as External Auditor for the fiscal year 2008-2009;
    • Vote of Appreciation
    • Board of Trustees’ meeting held on April 15, 2008
    • Board of Trustees’ meeting held on June 17, 2008
    • Board of Trustees’ meeting held on August 19, 2008
    • Organizational Meeting of the Board of Trustees held on September 16, 2008

Approval of the Audit Committee's policies and procedures covering the review of FEU's financial statements for the fiscal year ended March 31, 2009, including other services, is contained in the minutes of the Audit Committee meeting dated February 18, 2009. Board of Directors in Advancing Matters , covered by the annual report.

13 - Executive Committee

  • Board of Trustees’ meeting held on December 16, 2008
  • Board of Trustees’ meeting held on March 17, 2009
  • Board of Trustees’ meeting held on March 17, 2009
  • Item 8: Voting Procedures

With respect to the election of nine (9) trustees, each shareholder may vote such number of shares for as many as nine persons he may choose to be elected from the list of nominees, or he may cumulate said shares and one candidate as many votes as the number of his shares multiplied by nine equals, or he may divide them according to the same principle among as many candidates as he thinks fit, provided that the total number of votes cast by him does not exceed the number of shares held , does not exceed by him multiplied by nine. In the case of a vote by ballot, each vote shall be signed by the shareholder voting, or in his name by his proxy if there is such a proxy, and shall indicate the number of shares voted by him.

INFORMATION REQUIRED IN A PROXY FORM Items 1 and 2

KNOW ALL MEN BY THESE PRESENTS

Actions of the Board of Trustees in the furtherance of the matters covered by the Annual Report

In the event that this Proxy is returned without a choice having been made in any or all of the above items, the undersigned hereby authorizes the appointed proxy to vote in his or her behalf, at this

THIS PROXY IS BEING SOLICITED IN BEHALF OF FAR EASTERN UNIVERSITY, INC

Persons Making the Solicitation

THE FAR EASTERN UNIVERSITY, INCORPORATED

Interest of Certain Persons in Matters to be Acted Upon

MANAGEMENT REPORT

Brief Description of the General Nature and Scope of the Business of the Registrant and its Subsidiaries

Market Price and Dividends

Top 20 Stockholders as of June 30, 2009

Management Discussion and Analysis or Plan of Operation

Statement of Management’s Responsibility for Financial Statements 6. Compliance Report

Audited Financial Statements March 31, 2009, 2008 and 2007 with accompanying notes to Financial Statements

Consolidated Financial Statements March 31, 2009, 2008 and 2007 with accompanying notes to Financial Statements

17 - Grade School and High School

High and low sale prices for each quarter are as follows

April 01, 2009 – June 30, 2009

April 1, 2007 – March 31, 2008

Dividends

Number of Shareholders

Common Seyrel Investment and Realty Corporation

Management’s Discussion and Analysis or Plan of Operation

Financial Position

The constant and steady improvement of the company's financial condition, both in terms of solvency and liquidity, is largely attributable to the company's annual net profit over the past four years, net of cash dividends paid over the same period. Excess of Net Cash Dividends Income over Cash Net Income Paid Dividends Paid Year ( in million ) ( in million ) % ( in million.

Results of Operations

A Look of What Lies Ahead

  • Equity to asset ratio measures the amount of assets provided by the owner relative to the total assets of the company (Adequate: 50% or more)
  • Test of Profitability
    • Return on total assets measures how well management has used its assets under its control to generate income (Adequate: at least equal to the
    • Return on owner’s equity measures how much was earned on the owners’
  • Product Standard
    • Teaching performance in the University is constantly being monitored to maintain a satisfactory level of excellence
    • The Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA) has granted Certificates of Level III Re-
    • Performance of FEU graduates in their respective Board Exams is generally better than the national passing rate
  • Market Acceptability
    • There are no known trends, events or uncertainties which may have a material impact on liquidity
    • There are no known events that will trigger direct or contingent financial obligation that may be material to the company. There are also no known events that would result in
    • There are no material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the company with
    • There are no sales of Unregistered or Exempt Securities including Recent Issuance of Securities Constituting an Exempt Transaction
    • There are no material commitments for capital expenditures
    • There are no known trends, events or uncertainties which may have a material impact on sales
    • There are significant elements of income or loss from continuing operations
    • Seasonal aspects that has material effect on financial statements
    • Solvency
    • Debt to Equity ratio = Total liabilities Total Stockholder's Equity
    • Equity to Asset ratio = Total Stockholder's Equity
    • Profitability
    • Return on Owner's Equity = Net Income

Due to the economic recession, it was estimated that the first semester enrollment for SY 2009-2010 will be approximately 10% lower. Any increase in tuition fees usually takes effect in the first semester of the current school year.

Top Five (5) Key Performance Indicators

Test of Liquidity

  • Current ratio measures the number of times that the current liabilities could be paid with the available current assets (Adequate: at least 5:1)
  • Quick ratio measures the number of times that the current liabilities could be paid with the available quick assets (Adequate: at least 1:1)

Gross Book Value

Accumulated

EQUIPMENTS

INVESTMENT PROPERTY

FAR EASTERN UNIVERSITY

SCHEDULE OF PROPERTY, PLANT & EQUIPMENT/INVESTMENT PROPERTY SCHOOL YEAR 2008 - 2009

Properties

PROPERTIES LEASED BY THE CORPORATION FROM FERN REALTY, INC

Corporate Governance

Our Corporate Governance Compliance Officer filed its 2008 certification with the Securities and Exchange Commission on January 23, 2009 on the Company's compliance with its manual. attended a special corporate governance seminar conducted by an entity accredited by the Securities and Exchange Commission.

INDEX TO THE FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED MARCH 31, 2009, 2008 and

STATEMENTS OF CASH FLOWS FOR THE YEARS

SUPPLEMENTARY SCHEDULE

CONSOLIDATED FINANCIAL STATEMENTS

REPORT OF INDEPENDENT AUDITORS TO ACCOMPANY SEC SCHEDULES FILED SEPARATELY FROM THE

FAR EASTERN UNIVERSITY, INC

BALANCE SHEET MARCH 31, 2009

2008 (As restated -

NON-CURRENT ASSETS

LIABILITIES AND EQUITY CURRENT LIABILITIES

NON-CURRENT LIABILITY

EQUITY

2008 2007 (As restated - (As restated -

EDUCATIONAL INCOME

INCOME STATEMENT

NOTES TO FINANCIAL STATEMENTS MARCH 31, 2009

  • CORPORATE INFORMATION
  • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    • Basis of Preparation of Financial Statements
    • Impact of New Amendments and Interpretations to Existing Standards (a) Effective in fiscal year 2009 that are relevant to the University
  • PFRS 2 – Group and Treasury Share Transactions
  • Service Concession Agreements Philippine Interpretation
  • PAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding
  • Revised 2007) : Presentation of Financial Statements PAS 27 (Amendments) : Consolidated and Separate Financial
  • Revised) : Business Combinations
    • Separate Financial Statements and Investments in Subsidiaries and an Associate
    • Financial Assets
    • Property and Equipment
    • Investment Property
    • Financial Liabilities
    • Provisions
    • Revenue and Expense Recognition
    • Leases
    • Foreign Currency Transactions
    • Impairment of Non-financial Assets
    • Employee Benefits (a) Retirement Benefit Obligations
    • Trust Funds
    • Income Taxes
    • Related Parties
    • Equity
    • Earnings Per Share
    • SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
    • CASH AND CASH EQUIVALENTS
    • RECEIVABLES

The financial statements of the University have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). Items included in the university's financial statements are measured in its functional currency. Recognition and Measurement and IFRS 7, Financial Instruments: Disclosures (effective July 1, 2008) are relevant to the University.

Below is a discussion of the possible impact of these accounting standards on the University's financial statements. The university's financial assets categorized as loans and receivables are presented as liquid assets, receivables and receivables from related parties in the balance sheet. Changes in the accounting value of the investment are recognized in the result.

Financial liabilities are recognized when the University becomes a party to the contractual agreements of the instrument. Leases that do not transfer substantially all the risks and rewards of ownership of the asset to the University are classified as operating leases.

  • AVAILABLE-FOR-SALE (AFS) INVESTMENTS This category of financial assets consists of the following
  • INVESTMENTS IN SUBSIDIARIES AND AN ASSOCIATE
  • INVESTMENT PROPERTY
  • PROPERTY AND EQUIPMENT
  • ACCOUNTS PAYABLE AND OTHER LIABILITIES This account consists of
  • TRUST FUNDS
  • TUITION FEES
  • OPERATING EXPENSES Operating expenses consists of
  • FINANCE INCOME This account consists of
  • EMPLOYEES’ HEALTH, WELFARE AND RETIREMENT FUND
  • INCOME TAXES

Analyzes of changes in the book values ​​of the University's investments owned by custodial banks are presented below. This account consists of the main building of FEU East Asia and its improvements which are leased to EAEF. The reconciliation of the book values ​​of investment properties at the beginning and end of 2009 and 2008 is shown below.

A reconciliation of the carrying amounts, at the beginning and end of 2009 and 2008, of property and equipment is shown below. By the end of the financial year, the University collected tuition fees from students for summer classes starting after the balance sheet date. Contributions to this fund are in accordance with the defined contribution set by the Retirement Board, which is the sum of the employees' and the University's contributions.

The contribution of the employees is 5% of the base salary, while the contribution of the university is equal to 20% of the base salary of the employees. The components of the college tax expense presented in the income statement are as follows:.

Deferred tax expense (income)

  • RELATED PARTY TRANSACTIONS
    • Interest-bearing Advances
    • Noninterest-bearing Advances
    • Lease of Campus Premises from FRC
    • Lease of Certain Floor to FRC
    • Key Management Personnel Compensation
  • EQUITY
    • Capital Stock
    • Retained Earnings
  • EARNINGS PER SHARE
  • COMMITMENTS AND CONTINGENCIES
    • Operating Lease Commitments – University as Lessee

The University's related parties include its subsidiaries, the University's key management and others as described below. The University has outstanding cash advances to FRC with an aggregate principal amount of P100.0 million as of March 31, 2009 and 2008. The University makes unsecured, interest-free advances to certain related parties for working capital purposes which are currently unpaid and wanted.

The University leases several buildings located within the campus premises from FRC for a period of 10 years from July 1, 2005 to June 30, 2015. The University leases the mezzanine floor of one of the University buildings to FRC for a period of 10 years from September 1, 2007 to August 31, 2017, renewable by mutual consent of both parties. Based on the lease agreement, the University offers a discount on the monthly rent during the low season of the school year.

In 2009, the university made a reversal of grants amounting to P172.1 million. regarding expansion of facilities, repairs and improvements. Diluted earnings per share was not determined, as the university has no dilutive shares in March and 2007.

  • Others
  • RISK MANAGEMENT OBJECTIVES AND POLICIES
    • Interest Rate Sensitivity
    • Credit Risk
    • Liquidity Risk
    • Other Price Risk Sensitivity
  • CATEGORIES AND FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
  • CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES

There are other contingencies that arise in the normal course of business that are not accounted for in the university's financial statements. The BOT is ultimately responsible for establishing and supervising the university's risk management framework. The university's interest rate risk arises from the following interest-bearing financial instruments to which variable interest rates apply.

The following table illustrates the sensitivity of income before tax for the years in relation to the University's interest-bearing financial instruments. The University's exposure to price risk arises from its investments in shares and debt securities, which are classified as AFS investments in the balance sheets. In accordance with the University's policy, no specific hedging activities are undertaken in relation to these investments.

Investments are constantly monitored and the voting rights derived from these capital instruments are used in favor of the University. A description of the University's risk management objectives and policies for financial instruments is provided in Note 21.

NON-CURRENT LIABILITIES

FAR EASTERN UNIVERSITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

MARCH 31, 2009

REVENUES Educational income

FAR EASTERN UNIVERSITY, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT

FAR EASTERN UNIVERSITY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  • Impact of New Amendments and Interpretations to Existing Standards (a) Effective in fiscal year 2009 that are relevant to the Group
  • Revised 2007) : Presentation of Financial Statements PAS 23 (Revised 2007) : Borrowing Costs
  • Amendments) : Consolidated and Separate Financial Statements
  • Agreements for the Construction of Real Estate
  • Distribution of Non-cash Assets to Owners
    • Consolidation and Investment in an Associate
    • Real Estate Held for Sale
    • Property and Equipment
    • Investment Property
    • Financial Liabilities
    • Provisions
    • Revenue and Expense Recognition
    • Leases
    • Foreign Currency Transactions
    • Impairment of Non-financial Assets
    • Employee Benefits (a) Retirement Benefit Obligations
    • Trust Funds
    • Borrowing Costs
    • Income Taxes
    • Related Parties
    • Equity
    • Earnings Per Share
    • Critical Judgments in Applying Accounting Policies

The consolidated financial statements of the Group have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). Items included in the Group's consolidated financial statements are measured using its functional currency. Below is a discussion of the potential impact of these accounting standards on the Group's financial statements.

All subsequent changes in the share in the associated company's equity are recognized in the accounting value of the group's investment. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net sale proceeds and the carrying amount of the item) is included in. Financial liabilities are recognized when the Group becomes a party to the instrument's contractual agreements.

Leases that do not transfer to the Group substantially all the risks and rewards of ownership of the asset are classified as operating leases. Analyzes of the accounting values ​​of long-term tangible assets invested and long-term tangible assets are presented in.

  • AVAILABLE-FOR-SALE INVESTMENTS
  • REAL ESTATE HELD FOR SALE
  • INVESTMENT IN AN ASSOCIATE
  • INVESTMENT PROPERTY
  • PROPERTY AND EQUIPMENT
  • ACCOUNTS PAYABLE AND OTHER LIABILITIES This account consists of
  • TRUST FUNDS
  • TUITION FEES
  • OPERATING EXPENSES Operating expenses consists of
  • FINANCE INCOME This account consists of
  • EMPLOYEES’ HEALTH, WELFARE AND RETIREMENT FUND
  • INCOME TAXES
  • RELATED PARTY TRANSACTIONS
  • EQUITY
    • Capital Stock
    • Retained Earnings
  • EARNINGS PER SHARE
  • COMMITMENTS AND CONTINGENCIES 1 Purchase of Condominium Unit

Interest income recognized in and 2007 is presented as part of financial income in the consolidated income statement (see note 15). Analyzes of the movement in the carrying amount of the Group's investments held by trust banks are presented below. Per March 31, 2009 and 2008, the net accounting value of the property, which is presented as construction in progress under Property and Equipment, is P23.9 million, respectively. and P9.1 million.

Towards the end of the fiscal year, the university collected tuition fees from students for summer courses starting after the balance sheet date. Contributions to this fund are in accordance with the defined contribution determined by the pension council, which is the sum of the employees and the group. Employees' contribution is 5% of base salary, while Group contribution is equal to 20% of employees' base salary.

Unpaid dividends from 31 March 2009 and 2008 are presented as dividends payable under Accounts Payable and Other Liabilities in the consolidated balance sheets (see Note 11). This adjustment was made in connection with VVK's use of the Tax Amnesty Program under R.A.

RISK MANAGEMENT OBJECTIVES AND POLICIES

  • Interest Rate Sensitivity
  • Credit Risk
  • Liquidity Risk
  • Other Price Risk Sensitivity

The Group's exposure to interest rate risk arises from the following interest-bearing financial instruments, which are subject to variable interest rates. The following table illustrates the sensitivity of income before tax for the years in relation to the financial instruments of interest of the Group. The Group's credit risk exposure to other accounts receivable from debtors and related parties is managed through close account monitoring and setting limits.

In relation to the credit risk arising from cash and cash equivalents, receivables, investments in PVF and HTM investments, the Group's exposure to credit risk arises from the non-payment of the other party, with a maximum exposure equal to the book value of these instruments . The following table shows the credit quality of the Group's receivables, which are the only financial assets at 31 March 2009 and 2008 (presented in '000) that have overdue but not impaired components. The Group's exposure to price risk arises from its investments in equity and debt securities, which are classified as PVT investments in the consolidated balance sheets.

In accordance with Group policy, no specific hedging activities are undertaken in relation to these investments. The investments are continuously monitored and the voting rights arising from these equity instruments are used for the benefit of the Group.

CATEGORIES AND FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES

The Group monitors capital based on the debt-to-equity ratio, which is calculated as total debt divided by total equity. Statement of Management's Responsibility for the Consolidated Financial Statements Report of the Independent Auditors on the supplementary schedules of the SEC.

Statement of Management’s Responsibility for the Consolidated Financial Statements Independent Auditors’ Report on the SEC Supplementary Schedules

Filed Separately from the Basic Financial Statements Supplementary Schedules to Consolidated Financial Statements

Form 17-A, Item 7)

Marketable Securities - (Current Marketable Equity Securities and Other

Amounts Receivable from Directors, Officers, Employees, Related Parties

Noncurrent Marketable Equity Securities, Other Long-term Investments in

Indebtedness to Unconsolidated Subsidiaries and Related Parties NA

Indebtedness to Related Parties (Long-term Loans

Guarantees of Securities of Other Issuers

Supplementary Schedule to Parent Financial Statements (SEC Circular No. 11)

FAR EASTERN UNIVERSITY, INC. AND SUBSIDIARIES INDEX TO SUPPLEMENTARY SCHEDULES

OTHER LONG-TERM INVESTMENTS IN STOCKS AND OTHER INVESTMENTS FOR THE YEAR ENDED MARCH 31, 2009

ADDITIONS (DEDUCTIONS) Name of Issuing Entity and

BEGINNING BALANCE

SCHEDULE E - NON-CURRENT ASSETS FOR THE YEAR ENDED MARCH 31, 2009

FAR EASTERN UNIVERSITY SCHEDULE I - CAPITAL STOCK

Undertaking

Any written request for a copy of SEC Form 17-A shall be addressed to the following

Far Eastern University Nicanor Reyes Street

Mga Sanggunian

NAUUGNAY NA DOKUMENTO

Encarnacion Head Gentlemen: Please be informed that the Board of Trustees at its meeting held on April 17, 2012, passed the following resolutions: “RESOLVED, that the Board of