Land Bank of the Philippines - Manila Electric Company
Essay by Jameel Benavidez • January 16, 2017 • Case Study • 1,980 Words (8 Pages) • 1,417 Views
LAND BANK OF THE PHILIPPINES
COA Branch
COA Bldg. No. 3, COA Compound Commonwealth Ave., Quezon City
C R E D I T A P P R O V A L M E M O R A N D U M
BIR100816-LBPCOA-0001
DATE : October 1, 2016
BORROWER : MANILA ELECTRIC COMPANY
2nd Floor Technical Services Building, Meralco Center,
Ortigas Avenue, Pasig City
TIN# 000-101-528-000
code#351
Regulated Electric
PURPOSE OF LOAN : Additional Working Capital
The purpose of this loan is additional working capital to purchase, construction or renovation of a commercial or industrial property. Acquisition of a fixed asset such as new or upgrade equipment and machinery to improve production capacity.
Loan Package
P2,000,000,000.00 Business loan subject to the following terms and conditions:
(Two Billion) - can run for as long as 3 or 5 years and include additional requirements such as collateral and limits on the amount of additional financial commitments the business may take on.
- Fees and charges risk
- The bank reserves the right to amend any of the following terms and conditions without prior notice to the borrower.
P130,000,000,000.00 Term loan subject to the following terms and conditions:
(Thirteen Million) - Have the flexibility to pay your loan in 1 year or up to 10 years by
choosing the payment option that matches your cash flow.
- Secure your loan with acceptable collateral, such as real estate mortgage or cash.
- The bank reserves the right to amend any of the following terms and conditions without prior notice to the borrower.
P20,000,000,000.00 Short Term Loan Line to the following terms and conditions:
(Twenty Million) - This loan is to be paid in 1 year or less.
- Pay your loan according to standard credit terms, for up to 365 days.
- The bank reserves the right to amend any of the following terms and conditions without prior notice to the borrower.
Collateral: As of December 31, 2015 and 2014, the Group has no property and equipment that are pledged as collateral.
FINANCIAL CONDITIONS : | DEC. 31, 2011 | DEC. 31, 2012 | DEC. 31, 2013 | DEC. 31, 2014 | DEC. 31, 2015 |
A.Balance Sheet | |||||
A.1 CA | P95,773 | P92,243 | P107,486 | P112,612 | P95,295 |
A.2 FA | 114,615 | 124,648 | 156,518 | 156,441 | 186,944 |
TOTAL ASSETS | 210,388 | 216,891 | 264,004 | 269,053 | 282,239 |
A.3 CL | 62,155 | 59,518 | 94,626 | 83,528 | 93,215 |
A.4 NCL | 79,732 | 89,223 | 94,043 | 106,051 | 108,163 |
A.5 SE | 68,501 | 68,150 | 75,335 | 79,474 | 80,861 |
TOTAL L &SE | 210,388 | 216,891 | 264,004 | 269,05 | 282,239 |
B.Income Statement | |||||
B.1 Revenues | 256,808 | 285,270 | 298,636 | 266,336 | 258,399 |
B.2 Cost and Expenses | 239,016 | 266,162 | 274,486 | 240,242 | 234,991 |
B.3 Other Expenses (Income) | (907) | (177) | (1,914) | 374 | 1,468 |
B.4 Net Income Before Tax | 18,699 | 22,022 | 24,327 | 26,468 | 24,876 |
B.5 Provision For Income Tax | 5,953 | 5,741 | 7,054 | 8,337 | 5,687 |
NET INCOME | 13,759 | 17,259 | 17,273 | 18,131 | 19,189 |
C.Cash Flows | |||||
C.1 CF-OA | 31,934 | 36,244 | 37,144 | 37,495 | 41,683 |
C.2 CF-IA | (6,816) | (9,549) | (30,392) | (12,616) | (42,388) |
C.3 CF-FA | (4,278) | (10,336) | (7,401) | (15,261) | (17,924) |
C.4 Net Increase (Decrease) Cash and Cash Equivalents | 20,540 | 16,359 | (649) | 9,618 | (18,629) |
C.5 Cash and Cash Equivalents at Beginning of Year | 24,370 | 44,141 | 60,500 | 59,851 | 69,469 |
C.6 Cash and Cash Equivalents at End of Year | 44,141 | 60,500 | 59,851 | 69,469 | 50,840 |
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