Since the school, which is the main core of the business, is located in the University Belt, the competitors are prestigious colleges and universities within the specified area. In addition, the university recently acquired Level III reaccredited status for most of its liberal arts and business programs.
Legal Proceedings
- Pending Courts Cases as of 31 March 2009
- Recently Dismissed cases
None of the directors and officers have been involved in any bankruptcy proceedings within the past five (5) years. Nor have they been convicted in any criminal proceeding or subject to any order, judgment or decree of competent jurisdiction permanently or temporarily prohibiting, suspending or otherwise restricting their participation in any type of business, securities, commodity or banking activity , nor has any court or administrative body found it to have violated any securities or commodities law.
Submission of Matters to a Vote of Security Holders
The registrant or any of its subsidiaries or affiliates is not a party to any pending legal proceedings in which any of their property is the subject.
OPERATIONAL AND FINANCIAL INFORMATION
Market for Registrants Common Equity and Related Stockholders Matters DIVIDENDS DECLARED FOR THE FISCAL YEAR ENDED MARCH 31, 2009
April 1, 2007 – March 31, 2008
20 TOP FEU STOCKHOLDERS AS OF MARCH 31, 2009
Common Seyrel Investment and Realty Corporation
Management’s Discussion and Analysis or Plan of Operation
Financial Position
The continuous and steady improvement of the company's financial position, both in terms of solvency and liquidity, is largely due to the company's net profit each year for the past four years, net of cash dividends paid over the same period. Excess of net cash dividend income over cash net income Dividends paid Year (in millions) (in millions) % (in millions.
Results of Operations
A Look of What Lies Ahead
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)
- 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
- 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
- Solvency
- Debt to Equity ratio = Total liabilities Total Stockholder's Equity
- Debt to Asset ratio = Total liabilities
- Equity to Asset ratio = Total Stockholder's Equity
- Profitability
- Return on Owner's Equity = Net Income
The equity-to-assets ratio measures the amount of assets provided by the owner in relation to the company's total assets (sufficient: 50% or more) in relation to the company's total assets (sufficient: 50% or more ). There are no known events that lead to direct or contingent financial obligations that could be material to the company.
Gross Book Value
Accumulated
EQUIPMENTS
FAR EASTERN UNIVERSITY
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT/INVESTMENT PROPERTY SCHOOL YEAR 2008 - 2009
Financial Statements
The Financial Statements, including the applicable schedules listed in the accompanying index of financial statements and supplementary schedules, are filed as part of this form I7 - A.
INDEX TO THE FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES
PARENT CORPORATION FINANCIAL STATEMENTS
STATEMENTS OF CASH FLOWS FOR THE YEARS
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 University's financial statements are prepared in accordance with Philippine Financial Reporting Standards (PFRS). Items included in the University's financial statements are measured using its functional currency. Below is a discussion of the potential impact of these accounting standards on the University's financial statements.
Any changes to the carrying amount of the investment are recognized in profit or loss. Financial liabilities are recognized when the University becomes a party to the contractual agreements of the instrument.
- 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 the movement in the carrying amounts of the University's investments held by trustee banks are presented below. This account consists of the FEU East Asia Main Building and its improvements leased to EAEF. A reconciliation of the carrying amounts at the beginning and end of 2009 and 2008, of investment property is shown below.
Below is shown the reconciliation of the book values of tangible fixed assets at the beginning and end of 2009 and 2008. The components of the university's tax expenses presented in the income statements 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 a total principal amount of P100.0 million. per March 31, 2009 and 2008. The University leases certain buildings located within the campus area from FRC for a period of 10 years from July 1, 2005 to June 30, 2015.
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
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 university's exposure to price risk arises from its investments in equity and debt securities, which are classified as AFS investments on the balance sheets.
The investments are continuously monitored and the voting rights from these equity instruments are utilized in the university's favour. A description of the university's risk management objectives and policies for financial instruments can be found 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 consolidated financial statements of the Group are measured using its functional currency. Below is a discussion of the possible impact of these accounting standards on the Group's financial statements.
All subsequent changes in the share in the capital of the associated company are recognized in the book value of the group's financial investment. Financial liabilities are recognized when the Group becomes a contractual party to the instrument.
- 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 trustees are set out below. As of March 31, 2009 and 2008, the net book value of the property presented as Construction In Progress under Property, plant and equipment was P23.9 million and P9.1 million, respectively.
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 Group's. 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).
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 subject to variable interest rates. The Group's exposure to credit risk on its other receivables from debtors and related parties is managed through close monitoring of accounts and setting limits. The Group's exposure to price risk arises from its investments in equity and debt securities, which are classified as AFS investments in the consolidated balance sheets.
In accordance with the group's policies, no specific hedging activities are carried out in relation to these investments. The investments are continuously monitored, and the voting rights from these equity instruments are utilized to the group's advantage.
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. Management's Responsibility Statement for the Consolidated Financial Statements Independent Auditor's Report on the SEC Supplementary Schedules.
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
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
CONTROL AND COMPENSATION
Trustees and Executive Officers
22 - TRUSTEES AND EXECUTIVE OFFICERS
Angelina Palanca Jose, 56, Filipino: Trustee (1990 to present) and Corporate Secretary, Far Eastern University, Inc. 1998 to present) Secretary, Far Eastern University, Inc. Secretary, Treasurer and Trustee, Nicanor Reyes Educational Foundation; Corporate Secretary and Trustee, FEU Educational Foundation Inc.; Corporate Secretary and Governor, Nicanor Reyes Memorial Foundation; and Member, Executive Committee, Far Eastern University, Inc. Tan, 63, Filipino: Trustee, Far Eastern University, Inc. 1991 to present) Other professional experience: President of Asia Pacific College;.
Currently member of the Board of Directors/Trustees of the following companies: Nicanor Reyes Educational Foundation, Inc., FEU Educational Foundation, Inc., East Asia Educational Foundation, Inc., Lyceum of Batangas, Lyceum of Laguna, Foundation for Upgrading Standard of Education (FUSE), SM (Shoemart) Foundation, Inc., Asia Pacific Technology Educational Foundation and FERN Realty Corporation. He is also a member of the Board of Directors/Trustees of: FERN Realty Corporation, CIBI Information, Inc., Insular Life Health Care, IBM Philippines Retirement Fund Committee and is the Asia Pacific Regional Treasurer of the World Organization of the Scout Movement.
2004 to present)
Other Professional Experience: Founding Member and Incorporator, UST College of Architecture Alumni Association and Council of Architectural Researchers and Educators; Chairman, CHED Technical Committee on Architecture and Member of the Regional Assessment Team for Architecture; Fellow, United Architects of the Philippines (UAP); director, UAP Sta. Mesa Chapter; Member, Philippine Institute of Environmental Planners; Executive Director, Commission for Education of the UAP (2002 to 2004);. Chairman of the Council of Deans and Heads of Schools of Architecture in the Philippines or CODHASP (2003 to 2005); Secretary, National Committee on Architecture and Allied Arts of the National Commission on Culture and the Arts (NCCA) (2003 to 2007);.
He also earned academic units in the Master of Urban and Regional Planning from the University of the Philippines. Melchor holds a Bachelor of Science degree, majoring in Physics (College Scholar), and a Master of Science, majoring in Physics, from the University of the Philippines, Diliman.
1996 to present)
Melchor, 52, Filipino: Vice President for Planning and Development, Far Eastern University, Inc. April 2008 to date). Governor, Nicanor Reyes Memorial Foundation; Trustee, East Asia Educational Foundation, Inc.; Vice President, Alejandro Melchor Jr. Visiting Professor, Huaqiao University, Quanzhou, China; Scholar, Beijing Language Institute; Chapter Head, Haggai Institute for Advanced Leadership; Vice President for Academic Affairs, Far Eastern University, Inc.
FEU Educational Foundation for three years and as Chairman of the 2007-08 Special Projects Committee of the Philippine Institute of Certified Public Accountants (PICPA). Nagal graduated with a Bachelor of Science degree in Commerce, majoring in Accounting from Far Eastern University.
January 21, 2003 to present)
Executive Compensation
Other Arrangement
No information is available regarding all outstanding warrants or options held by members of the Board of Directors and corporate officers.
Maliwat Treasurer
Security Ownership of Certain Beneficial Owners and Management
Certain Relationship and Related Transactions
Corporate Governance
Corporate Governance
EXHIBITS AND SCHEDULES Item 14 Exhibits and Reports on SEC Form 17-C
- Resolution approved at the Board of Trustees’ meeting held on April 15, 2008
- Resolution approved at the Board of Trustees’ meeting held on June 17, 2008
- Resolutions approved at the Board of Trustees’ meeting held on August 19, 2008
- Resolutions approved at the Annual Stockholders’ meeting held on August 23, 2008
- Resolutions approved at the Organizational Meeting of the Board of Trustees held on September 16, 2008
- Resolution approved at the Board of Trustees’ meeting held on December 16, 2008
- Resolution approved at the Board of Trustees’ meeting held on March 17, 2009
- Resolution approved at the Board of Trustees’ meeting held on March 17, 2009
Fractions of shares resulting from the aforementioned stock dividend will be paid in cash by the company on the basis of the nominal value. Endorsement and confirmation of the actions of the officers and trustees in furtherance of the matters dealt with in the Annual Report for Fiscal Year 2007-2008;. Montinola, Trustee, as Acting Company Secretary of the Corporation, for the duration of Mrs.
- Institute of Arts and Sciences 10.00%
- Associate in Health Science Education 20.75%
- Teaching services are rendered to students who come and enroll
- No patents, trademarks, copyrights, licenses, franchises, concessions, and royalty agreements are held by the company
- All courses offered are with CHED recognition
The business of higher education in the country is in the hands of the private sector. This is evidenced by the high concentration of public and private colleges and universities in the National Capital Region and Southern Tagalog regions. Far Eastern University's market consists of the working class and the middle income group.
The Company does not own any patents, trademarks, copyrights, licenses, franchises, concessions or royalty agreements. Dividend payments are usually limited by the company's reserves and budgetary resources and by the amount necessary to ensure smooth and uninterrupted operations during the year.
