ACCTBA2 - K32

Second Half Course Requirement

Group Research Project

DMCI Holdings Inc.

Members:

Casibang, Freedom A.

Cenidoza, Christine D.

Soriano, Eden Joyce D.

Yabut, Niccolo C.

a. What is the name of the corporation? What is the nature of its business?
 DMCI Holdings, Inc. was incorporated on March 8, 1995 as a holding company to

combine all construction business, construction component companies and related

interests of the Consunji Family. The company listed on the Philippine Stock Exchange

on December 18,1995 has three major operating branches: D.M. Consunji Inc. (DMCI),

DMCI Project Developers Inc. (PDI), and Semirara Mining Corporation. These

subsidiaries are engaged in construction, real estate, coal mining, nickel mining, power

generation, and water distribution.

b. Who are the members of the Board of Directors? Who is the chairman of the

board?

The members of the Board of Directors are:

- David M. Consunji - Chairman of the Board

- Cesar A. Buenaventura - Vice Chairman of the Board

- Isidro A. Consunji - President

- Herbert M. Consunji - Vice President & Chief Finance Officer/Compliance

Officer

- Jorge A. Consunji

- Victor A. Consunji

- Ma. Edwina C. Laperal - Treasurer

 - Antonio Jose U. Periquet - Independent Director

- Honorio O. Reyes-Lao - Independent Director

c. Who is the President of the corporation?

The founder or president of DMCI Holdings Inc. is Mr. David M. Consunji. He is

known for the establishments and contributions he was able to make for the countrys

economy. His knowledge, expertise, and dedication to his work made him one of the

best engineers in the country.

For the past five decades, Mr. Consunji was able to build various buildings we

still see to this very day. Some of the buildings he established includes former Philippine

Plaza Hotel (now known as Sofitel), Philippine National Bank (Escolta) and

contemporary establishments in Makati; these includes Makati Shangri-la Hotel, Pacific

Plaza, Rockwell Center Tower, etc.

d. What class(es) of stock the corporation is authorized to issue? How many are

the authorized shares? How much are their par values? How many shares are

issued? How many shares are subscribed?

The corporation is authorized to issue common and preferred stocks.

100,000,000 preference shares and 19,900,000,000 ordinary shares were authorized by

the firm, both with a par value of P1.00 per share. 13,277,470,000 preference shares
and 3,780 ordinary shares were issued. There were no subscribed shares indicated on

the financial statement of the corporation.

e. Does the firm have treasury shares? How many shares are there in the

treasury? How much is the cost per share? What method of recording treasury

stock does the firm follow?

According to the information gathered by the researchers, the financial data of

DMCI Holdings Inc. shows a negative entry on treasury shares.

No treasury share has been recorded as of September 9, 2014.

f. How much is the total retained earnings? How much is free? How much is

appropriated? What kind of appropriations did it make?

The total retained earnings of DMCI Holdings, Inc. in 2014 is P8,610,215,902.

The Board of Directors has appropriated 1.60 billion on December 28,2012, from its

unrestricted retained earnings as of December 31, 2012. The amount appropriated will

be used for the stock subscription of DMCI Mining to fund ongoing acquisition of shares

of stocks of Toledo, which was completed in 2013. Moreover, the Board of Directors on

December 28, 2013 has approved the reversal of the appropriation made in 2012
amounting to P3.80 billion, it was reversed to unappropriated retained earnings. On the

same date the appropriation of its retained earnings for capital expenditures and

investments amounting to P1.30 billion was authorized by the Board of Directors.

In addition to, on December 9, 2014, the Board of Directors approved the

reversal of the appropriation made in 2013 of retained earnings amounting to P2.10

billions, it was then reversed to unappropriated earnings. At the end of the accounting

period, December 31, 2014 the unappropriated retained earnings amounted to

P8,610,215,902. while, the appropriated retained earning has a balance of P0.

g. Did the firm declare cash dividends during the year? If yes, how much?

Yes, the firm declared cash dividends during the year. The Board of Directors

declared a P1.20 per share cash dividend to stockholders on record as of May 30, 2015

which totals to P3,186,592,800, payable on or before June 13, 2014. On the same date

recorded, the firm also declared a P1.20 per share special cash dividend to

stockholders which also totals to P3,186,592,800, payable on or before June 13, 2014.

Total cash dividends declared for the year, 2014: P6,373,185,600

h. Does the firm have any stock dividends distributable as of balance sheet data?

If yes, how many shares are to be issued and when are these to be distributed?

Yes, the firm has stock dividends distributable. Based on the balance sheet data,

the firm has 10,621,976,000 million shares to be issued with the par value of P1.00 per
share. The Securities and Exchange Commission set the date of record on October 17,

2014. These shares are then to be distributed on November 7, 2014, which is

considered to be the payment date.

i. How much is net income or net loss during the year? (For the year ended

December 31, 2014)

According to DMCI Holdings Inc.s Parent Company Statements of Changes in

Equity, the firms net income that was actually earned/realized during the year 2014

amounts to P4,880,412,590 after tax. For additional information, the net income for the

previous year was 16,651,290,588 after tax. The apparent net income that was reported

by DMCI Holdings Inc., based on the significant financial information of the associates

and jointly controlled entity that are material to the Parent Company, amounted to

P7,793,537 for DMWC and a net loss of P721,190.

j. Does the firms Statement of Changes in Equity follow the format given in

class? If yes, what column headings does it have? What particular accounts and

amounts did the firm include under each column heading? If the company did not

follow the format in class, what format does it have?

The Statement of Changes in Equity of DMCI Holdings Inc is in the same format

as to what we were presented in class. Listed below are the following column headings
and the particular accounts under each one that the firm used in their Statement of

Changes in Equity;

1st column heading- Capital Stock

Under this column heading are the following:

a. Stock Dividends declared (10,621,976,000)

2nd column heading- Additional Paid-in Capital

Under this column heading are the following

a. Stock Dividends declared (92,922,746)

3rd column heading- Unappropriated Retained Earnings

Under this column heading are the following:

a. Comprehensive Income- Net Income for the year (4,880,413)

b. Dividends- Stock Dividends declared (-10,621,976,000)

Cash Dividends declared (-6,373,185,600)

c. Appropriation for capital expenditures and investments- Reversal of

Appropriation (2,100,000,000)

4th column heading- Appropriated Retained Earnings

Under this column heading are the following:

 a. Appropriation for capital expenditures and investments- Reversal of

Appropriation (-2,100,000,000)

5th column heading- Remeasurement Gains (Losses) on Retirement Plans

Under this column heading are the following:

a. Comprehensive Income- Other Comprehensive Income (13,743,327)

b.

k. Did the notes to financial statements include any disclosure on corporate

social responsibility such as employee benefits, environmental and community

concerns?

Yes, there was a mention of their CSR or corporate social responsibility on the

notes to financial statements, particularly on employee benefits.

The Parent Company has a funded, noncontributory, defined benefit pension

plan covering substantially all of its regular employees. Provisions for pension

obligations are established for benefits payable in the form of retirement pensions.

Benefits are dependent on years of service and the respective employees final

compensation. The Parent Company updates the actuarial valuation every year by

hiring the services of a third party professionally qualified actuary. The latest actuarial

valuation report of the retirement plans was made as of December 31, 2014

l. What conclusions can you derive from this simple research?

 DMCI Holdings, Inc is a diversified engineering conglomerate primarily engaged

in general construction services, real estate development, coal energy, nickel mining

and water distribution. One of the things that stood to us the most was how they are true

to their commitment to creating, sustaining and delivering value to their stockholders.

The Board of Directors declared regular and special cash dividends of P1.20

each share, for a combined dividend of 2.40 per common share, in favor of the common

stockholders.The payout totaled P6.37 billion.

Its three major operating branches - D.M. Consunji Inc. (DMCI), DMCI Project

Developers Inc. (PDI), and Semirara Mining Corporation - have also continued to deliver

sustainable growth in 2014 as backed up by the Financial Statements.

With all the data that has been researched, we can derive and conclude that DMCI

Holdings, Inc is a very well established corporation.

References

Sicat, Gerardo. "A Builder and Contemporary Hero David Consunji at 90." N.p., 16

Nov. 2011. Web. 01 Dec. 2015. <http://www.econ.upd.edu.ph/perse/?p=566>.

Financial Report:

http://edge.pse.com.ph/openDiscViewer.do?edge_no=022ed9bbf6dc2f0db15effbf9088d

1ab#sthash.zQvVmf26.luij7VoW.dpbs