Aaliyah May A.

Placente
BSA- 2A
Company Name: Nickel Asia Corporation
Industry Classification: Nickel Ore Mining
Analysis of the financial statements:
 Current assets slightly went up by 2%. This increase is a result of an increase in cash,
receivables from customers, prepayments and other current assets. However, it was off-
set by a decline in the financial assets. Noncurrent assets improved by 3%.
 Current liabilities increased by 4% due to the increase in income tax payable while non-
current liabilities slid by 1% because of the decrease in deferred income tax liabilities.
 The equity increased by 2% from continued profitable operations.
 The net income decreased by 5%. It is mainly because when you look at the components
of costs and operating expenses both increased while the revenues decreased. General
and administrative expenses rose by 32% which resulted from higher business taxes paid
due to higher income base in 2017. Finance income went up by 37% which arose mainly
from
the gains we realized from the disposal of offshore investments.
 Net cash from operating activities in the first half of 2018 went down due to lower
revenue resulting from weaker ore export prices and higher operating costs and expenses
resulting from higher taxes and fuel cost due to the implementation of the TRAIN law
and higher maintenance costs.
 Cash from or used in investment activities arose from net acquisitions or net disposals of
property and equipment and AFS financial assets, additions to project development costs
and geothermal exploration and evaluation of assets, and receipt of interest were notably
lower compared to the same period last year leading to a significant decline in cash used
for investment purposes.
 Cash used in financing activities arose mainly from payments of cash dividends, long-
term and short term debts.
 The capital structure: common stock is measured at 0.50 par value and preferred stock at
0.01 par value. Preferred share is voting, non-participating but with a fixed cumulative
dividend rate of 7%
Accounting Standards/ Accounting Policy Related to Mining Operations:
 PFRS 6 Exploration for and Evaluation of Mineral Resources
 PFRS 9, Financial Instruments
 IFRS 13 Fair Value Measurement
 Philippine Interpretation IFRIC 5: Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds
 Amendments to PAS 16 and PAS 38: Clarification of Acceptable Methods of
Depreciation and Amortization