2004 illustrative fs parent rev 02 05

7/28/2019 2004 Illustrative FS Parent Rev 02 05

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ABC MANUFACTURING COMPANY

(A Wholly Owned Subsidiary of XYZ Holdings Corporation)BALANCE SHEETS

DECEMBER 31, 2004 AND 2003

2004 2003

A S S E T S

CURRENT ASSETS

Cash and cash equivalents (Notes 4, 9 and 13) 21,012,102P 22,647,248PMarketable equity securities - net (Notes 5, 9 and 18) 6,344,082 5,587,082Trade and other receivables - net (Notes 6 and 20) 20,761,621 27,789,760Receivable from a finance lease (Note 23) 943,333 -Inventories - net (Notes 7, 13 and 20) 60,150,316 74,170,968

Prepayments (Note 8) 8,415,315 10,147,031

Other current assets (Note 12) 2,745,500 8,919,455

Total Current Assets 120,372,269 149,261,544

NON-CURRENT ASSETS

Investments in subsidiaries and associate (Note 9) 179,863,915 178,201,394Interest in joint venture and other long-term investments (Notes 4, 5 and 9) 78,354,977 75,955,147Receivable from a finance lease (Note 23) 4,716,667 -Other receivables - net (Notes 6 and 20) 4,325,321 5,998,512Property, plant and equipment - net (Notes 3, 10, 13 and 23) 83,462,132 80,331,153

Intangible assets - net (Note 11) 2,050,000 3,900,000Deferred tax assets (Notes 3 and 19) 12,537,494 10,584,259

Other non-current assets (Note 12) 30,547,028 30,674,685

Total Non-current Assets 395,857,534 385,645,150

TOTAL ASSETS 516,229,803P 534,906,694P

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Interest-bearing loans and borrowings (Notes 4, 7, 10, 13 and 23) 16,652,700P 19,339,333P

Trade and other payables (Notes 14 and 20) 57,984,652 56,922,913

Income tax payable 4,210,321 1,543,182Provisions (Notes 15, 17 and 18) 14,012,101 15,008,012

Total Current Liabilities 92,859,774 92,813,440

NON-CURRENT LIABILITIES

Interest-bearing loans and borrowings (Notes 4, 7, 10, 13 and 23) 55,000,000 42,000,000Due to related parties (Note 20) 175,461,521 215,945,513

Provisions (Notes 15, 17 and 18) 2,150,120 2,064,500

Other non-current liabilities 577,043 1,452,333

Total Non-current Liabilities 233,188,684 261,462,346

Total Liabilities 326,048,458 354,275,786

EQUITY

Capital stock(Note 21) 125,250,000 125,250,000Additional paid-in capital 7,005,000 7,005,000

Treasury shares, at cost 1,000,000 )( 1,000,000 )(

Net unrealized loss on non-currentmarketable equity securities (Notes 5 and 9) 3,000,000 )( 2,757,000 )(

Retained earnings (Notes 3 and 21) 61,926,345 52,132,908

Total Equity 190,181,345 180,630,908

TOTAL LIABILITIES AND EQUITY 516,229,803P 534,906,694P

See Notes to Financial Statements.


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ABC MANUFACTURING COMPANY(A Wholly Owned Subsidiary of XYZ Holdings Corporation)

STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

2004 2003

REVENUESSale of goods 135,465,216P 136,496,841PRendering of services 13,334,605 9,363,542

Other revenues (Notes 5, 15, 18 and 20) 1,022,150 3,117,094

149,821,971 148,977,477

COSTS AND OPERATING EXPENSESCost of goods sold (Notes 3, 16 and 20) 67,732,608 62,717,599Cost of services (Note 16) 9,274,715 8,900,880Salaries and employees' benefits (Notes 17 and 20) 13,751,232 12,732,391

Foreign currency losses - net 5,462,132 7,954,301Depreciation and amortization 4,201,301 3,864,104Doubtful accounts 2,000,000 2,500,000Impairment losses (Note 10) 1,200,000 2,000,000

Other operating expenses (Notes 3, 5, 11, 18, 20 and 23) 9,865,562 13,947,020

113,487,550 114,616,295

INCOME FROM OPERATIONS 36,334,421 34,361,182

OTHER INCOME (CHARGES)Finance costs (Note 13) 7,221,523 )( 8,575,291 )(Equity in income of subsidiaries, associate and

joint venture (Note 9) 4,512,351 3,478,146

2,709,172 )( 5,097,145 )(

INCOME BEFORE TAX 33,625,249 29,264,037

TAX EXPENSE (Note 19) 10,277,212 11,031,254

NET INCOME 23,348,037P 18,232,783P



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2004 2003

CAPITAL STOCK1Note 21

Balance at beginning of year 125,250,000P 100,000,000P

Issuance of shares - 25,250,000

Balance at end of year 125,250,000 125,250,000

ADDITIONAL PAID-IN CAPITALBalance at beginning of year 7,005,000 3,750,000

Premium on shares issued during the year - 3,255,000


TREASURY SHARES -At Cost

Balance at beginning of year 1,000,000 )( 800,000 )(Treasury stock acquired - 200,000 )(

Balance at end of year 1,000,000 )( 1,000,000 )(

NET UNREALIZED LOSSES ON NON-CURRENTMARKETABLE EQUITY SECURITIESBalance at beginning of year 2,757,000 )( 1,875,000 )(

Additional decline in value 243,000 )( 882,000 )(

Balance at end of year 3,000,000 )( 2,757,000 )(

RETAINED EARNINGSBalance at beginning of year

As previously reported 52,132,908 51,189,888Effects of adoption of new accounting

standards - net of tax effects of P1,582,966 (Notes 3 and 21) - 4,946,769 )(

As restated 52,132,908 46,243,119Cash dividends (Note 21) 13,554,600 )( 12,342,994 )(

Net income 23,348,037 18,232,783


TOTAL EQUITY 190,181,345P 180,630,908P

Net Losses Directly Recognized in Equity 243,000P 882,000P


1 If there are only few details, show on the face of the statement the number of authorized, issued, and subscribed shares and par value.

FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003STATEMENTS OF CHANGES IN EQUITY

(A Wholly Owned Subsidiary of XYZ Holdings Corporation)ABC MANUFACTURING COMPANY


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2004 2003

CASH FLOWS FROM OPERATING ACTIVITIESIncome before tax 33,625,249P 29,264,037P

Adjustments for:Depreciation and amortization 12,013,461 10,794,626

Amortization of intangible assets 1,850,000 1,850,000Unrealized foreign currency losses 1,230,125 5,403,286Impairment losses 1,200,000 2,000,000Equity in net income of subsidiaries,

associate and joint venture 4,512,351 )( 3,478,146 )(Interest expense 7,221,523 8,575,291Dividend income 450,000 )( 450,000 )(

Interest income 572,150 )( 462,094 )(

Operating income before working capital changes 51,605,857 53,497,000Decrease (increase) in marketable equity securities 757,000 )( 22,356,572Decrease in trade and other receivables 6,069,149 2,669,038Decrease (increase) in inventories 14,020,652 1,620,479 )(Decrease (Increase) in prepayments 211,596 348,773 )(Decrease in other current assets 7,847,146 426,746Increase (decrease) in trade and other payables 809,771 )( 4,338,493 )(Increase (decrease) in other liabilities 875,290 )( 560,088

Decrease in provisions 910,291 )( 247,150 )(

Cash generated from operations 76,402,048 72,954,549

Interest paid 6,930,013 )( 1,300,750 )(

Cash paid for income taxes 8,043,188 )( 8,777,357 )(

Net Cash From Operating Activities 61,428,847 62,876,442

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of investments 15,012,000 24,587,500

Acquisition of long-term investments - 1,530,784 )(Interest received 301,015 787,094Decrease in other non-current assets 127,657 13,906,020

Dividends received from an associate 450,000 400,000

Proceeds from sale of property, plant and equipment - 108,461Acquisitions of property, plant and equipment 20,424,440 )( 9,437,826 )(

Acquisitions of investments 14,805,000 )( 67,775,758 )(

Net Cash Used in Investing Activities 19,338,768 )( 38,955,293 )(

Forward

ABC MANUFACTURING COMPANY(A Wholly Owned Subsidiary of XYZ Holdings Corporation)

STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003


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2004 2003

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from additional borrowings 50,413,367 27,600,000

Additional borrowings from related parties 15,642,130 25,411,560Proceeds from the issuance of shares of stock - 28,505,000

Treasury shares acquired - 200,000 )(

Repayment of amounts due to related parties 56,126,122 )( 36,197,019 )(Cash dividends paid 13,554,600 )( 12,342,994 )(

Borrowing repayments 40,100,000 )( 39,631,829 )(

Net Cash Used in Financing Activities 43,725,225 )( 6,855,282 )(

NET INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS 1,635,146 )( 17,065,867

CASH AND CASH EQUIVALENTSAT BEGINNING OF YEAR 22,647,248 5,581,381

CASH AND CASH EQUIVALENTS

AT END OF YEAR 21,012,102P 22,647,248P

Supplemental Information on Noncash Investing Activity

In 2003, a portion of the Company's restricted deposits in a closed bank amounting to P4,800,000 was converted intopreferred shares of the bank which acquired the closed bank (see Notes 9 and 12).

Certain transportation equipment with carrying amounts of P1.5 million and P1.6 million as of December 31, 2004 and2003, respectively, are carried under finance leases. In addition, starting 2004, the Company leased a certain specializedequipment with carrying amount of P5.5 million under a finance lease for a period of six years. (See Notes 3 and 23).


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2004 illustrative fs parent rev 02 05

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