CHAPTER 1.

OUR COMPANY PROFILE

1.1 HISTORY OF THE COMPANY

1.1.1 NAME AND NATURE OF THE COMPANY

“Feliz Dientes” is a limited partnership business. As a limited partnership

business, it is composed of a general partner and limited partners who will

contribute certain amount of money, property and industry into a common fund

with the intention of dividing profits among themselves. Limited partners will

only be liable to the company’s obligation only to the extent of the contribution

while the general partner will be obliged even to the extent of his/her personal

property. This business is about dental services organized by dentists which make

it a general professional partnership.

1.1.2 BRIEF DESCRIPTION

Feliz Dientes, Ltd. is a General Professional Partnership founded in the

year 2014. This is a limited partnership led by Diane Santos as a general capitalist

partner, and four industrial partners namely Mel Jenn Anell Cruz, Mary Grace

Agas, Rolette Samonte and Edelwin Fajutagana. The company focuses on

providing quality but affordable dental services to clients of any age. To show the

passion on their chosen field of profession is the major reason of forming this

company.

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1.2 PHILOSOPHY OF THE COMPANY

1.2.1 VISION

To become the top organization providing dental services in the

Philippines.

1.2.2 MISSION

Feliz Dientes aims to provide exemplary dental care in a state of the art

facility with great affordability and excellent value.

1.2.3 VALUES

Our core values encompass our operating philosophy and principles that

guide us in our daily actions and decisions, as well as in our interactions with

others.

Excellence

We provide quality patient care in the most efficient and effective manner

to achieve optimal patient health. We will strive for excellence and continuous

quality improvement in all of our activities.

Integrity

We will act ethically, openly, honestly, respectfully, and with integrity in

our daily actions and interactions. We will act with professionalism, performing

to the highest standards of knowledge, respect, and trust.

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Respect

We respect all patients and provide them with compassionate, ethical, and

culturally appropriate treatment. We encourage collaboration and cooperation

among all staff, patients, and our community.

Innovation

We understand the need for change and embrace new challenges. We

value teamwork in our approach to finding innovative solutions to common

problems.

Accountability

We will exercise sound judgment and serve the best interests of our

patients, the company, and our community. We will be accountable for our

conduct and compliance with applicable laws and policies. We accept

responsibility for our decisions and actions. We celebrate our successes and learn

from our experiences.

Leadership

Our strength, and competitive advantage, is and always will be people. We

will develop team leadership and management skills at every level.

Social Responsibility

We are committed to improving the quality of life for our staff and

patients. We will invest in the communities we serve through service and

partnerships, and encourage all employees to contribute in their communities. We

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 will serve as advocates, especially for underserved populations, to promote equity

and reduce oral health disparities.

1.2.4 GOALS

To create a number of branches enough to provide the quality service in

different regions of the country.

1.2.5 OBJECTIVES

1. To create an established market within the vicinity through quality and first

class service.

2. To constantly increase clients every year.

3. To help underprivileged children be aware of the importance of proper dental

hygiene.

4. To educate people of the basics and benefits of taking care of their teeth.

5. To show importance of maintaining proper care of teeth starting at a young

age.

1.3 HISTORICAL BACKGROUND

The earliest known recorded case of treating tooth related problems dates back all

the way to 7000 BC, where evidence suggests that members of the Indus Valley

Civilization – located approximately where Pakistan and Afghanistan are today – treated

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the mouth for tooth decay. These early treatment methods involved bow drills, which the

ancient society used for drilling into wood and into a patient’s troublesome tooth. While

this sounds unpleasant, historical reconstructions have discovered this technique

surprisingly effective at boring out teeth rotted with disease.

Roughly 2,000 years later, the ancient Sumerians began blaming tooth decay on

tiny worms that would burrow holes into a patient’s teeth. Once imbedded, these worms

would continue burrowing holes until a tooth had completely fallen apart. Incredibly, this

theory remained part of common medical knowledge all the way until the 18 th century

when French surgeon Pierre Fauchard – known today as the “father of modern dentistry”

– published Le chirurgien dentiste, “The Surgeon Dentist” in 1728.

Despite the advances made in the Indus Valley, teeth drilling wasn’t commonly

practiced around the world. Starting with the ancient Greeks, the treatment of pain and

decay usually resulted in the patient having his tooth extracted. The idea of having a tooth

extracted from the mouth using forceps carried on well into the Middle Ages, and was

used to treat a variety of diseases.

Strangely, the individuals who performed the majority of tooth extractions were

not surgeons or doctors, but barbers. Dating back to the 14th century, barbers would use

tools such as “dental pelicans” and “dental keys” to pull teeth from a patient’s mouth.

Both of these tools were similar in design and function to the modern day forceps. While

barbers pulled teeth, they were in no way dentists or even interested in helping to treat an

individual’s oral problems. A barber’s goal was only to help alleviate the pain caused by

rotted teeth.

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 It wasn’t until the late 18 th and early 19th century that concepts we associate with

modern dentistry were developed. The work of Pierre Fauchard and his fellow

contemporaries helped to lay the foundation of much of what we know about dentistry

today. Fauchard was the first to develop a safe and effect process behind dental fillings,

and he also determined that acids produced by bacteria in the mouth was a major cause of

decay.

From this point forward, the science of dentistry began to develop rapidly. In

1840, the world’s first dental college – Baltimore College of Dental Surgery – opened.

The increased prevalence of dental studies led for the need of further government

oversight, and eventual regulation through the American Dental Association, which was

established in 1859.

Interestingly, the majority of Americans failed to develop regular brushing habits

until after World War II, when soldiers stationed overseas brought back European

concepts of quality oral hygiene to the states. Today, science continues to make

breakthroughs regarding the important role quality oral health plays in helping an

individual maintain their overall health.

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1.4 LOGO AND DESCRIPTION

Figure 1. Company Logo

Feliz Dientes means “happy teeth”. The name of the company ensures

wellness and compassionate service to its patients. As the background color violet

signifies the personality of being helpful for those in need and thinking of others

before you; it is the vision of the company. The company is dedicated in giving

out excellent services towards to its patients. Also violet represents friendship, as

we want to build a friendly environment with the patients and eventually gaining

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 their trust and loyalty to the company. The tooth as the main character of the

design stands for healthier teeth and free from any cavity related problems. It

shows that having a good dental care can make a smile and stand out from the

rest.

1.5 SERVICE DESCRIPTION

The Dental Clinic offers a wide range of preventive and diagnostic

services including complete dental exams, urgent dental evaluations, dental

education and consultation. Also we offer different dental procedures like tooth

extraction, pasta, impaction, prophylaxis, root canal treatment, fixed partial

denture, which represents the main source of income of the clinic.

Our rates are lower than area private practices. We strive to keep our

prices affordable — usually 10 to 15 percent lower than area dental offices, and

sometimes more. You will receive high-quality care at a lower price.

1.6 LOCATION OF THE BUSINESS

Fisher Mall is one of the newest malls in Metro Manila and is located at

the corner of Quezon Ave and Roosevelt Ave in Quezon City. It is a huge

elongated structure prominently seen from the distance.

Figure 2. Fisher Mall, Quezon City

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 Almost all directions of different origins of jeepney and bus routes are

headed to Fisher Mall. That is why Feliz Dientes, Ltd. considred this mall to put

up one of their 1st clinics in the north. Going there takes only one jeepney or bus

ride from the following: Cubao, Fairview, Munoz, Quiapo, PRC-Morayta,

Welcome Rotunda, Pier, TM Kalaw, Pedro Gil-Taft, Manila City Hall, SM City

Manila, Lawton, Trinoma, SM North EDSA, Philcoa, Quezon City Hall,

Southwest Integrated Terminal, etc. Feliz Dientes, Ltd clinic is located at the

third level area where the other specialty stores and clinics are also located.

Figure 3. SM City Bacoor Cavite

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 SM City Bacoor is a shopping mall in Brgy. Habay in the City

of Bacoor, Cavite in the Philippines. It is developed and owned by SM Prime

Holdings, the largest shopping mall and retail operator in the country. The mall is

the very first SM Supermall in the entire Luzon region outside of Metro

Manila and the very first in province of Cavite.

This is where the 2nd clinic of Feliz Dientes will be located, also at the

third level area of the mall. Clinic office hours for both location operates daily

from 11:00 AM to 8:00 PM, except Holy Week of each year where it signs off at

8:00 PM of Holy Wednesday until 11:00 AM of Holy Saturday.

1.7 QUALITY POLICY

General and Functional Policies

 Employees shall report from Monday – Friday with a total of 40 working

hours, and a maximum of 8 hours per day.

 Logging in and logging out of the employees shall be practiced according

to their designated schedule of work.

 All members must attend company meetings.

 Salary will be given every 15th and 30th day of the month.

 Good manners and right conduct must be observed.

 Maintain cleanliness in the working place.

 Employees should be responsible in their assigned task.

 Multi-tasking must be observed when the need arises.

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  No employee shall let his or her time card be signed by another employee.

 Cell phones are not allowed in the working area.

 Proper usage of utensils and tools must be observed.

 Employees must commit to legal and ethical business practices.

Production Policies

 Employees must attend trainings to educate them on how the service is

being prepared and process.

 During working hours the employees should wear proper working clothes

such as: gloves, gown and mask.

Administrative Policies on Departments

 Prepare a daily report for the management.

 Operations Manager should be responsible to monitor the number of

services rendered by the professional dentists.

 All major business transactions must be noted by the General Manager.

 The general manager has an obligation of observing the business

production and operation if it meets the objective of the firm.

 The manager must have a close supervision on the company’s financial

condition.

Market Policies

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  Exhibit customer value to create a good customer relationship.

 Create innovative ways to sell and promote the services.

1.8 ORGANIZATIONAL STRUCTURE

FELIZ DIENTES, LTD. is governed by the General Manager. Under its direct

supervision would be the Operations Manager and the Administrative Officer. Operations

manager will be the one to check on the daily activities of the dentists while the

Administrative officer will guide the Finance, Marketing and Purchasing department.

Figure 4. Organizational Chart of Feliz Dientes, Ltd.

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1.8.1 JOB DESCRIPTION AND SPECIFICATION

General Manager

Job Description Job Specification

 Responsible in supervising the  Preferably with a Degree in

entire business operation. Business Management or in any

 Responsible for planning, Business Course.

organizing and controlling business  Must have a good communication

activities which covers the and interpersonal skills.

production, marketing and financial  Must have excellent planning and

status. organizing skills.

 Build a strong commitment with  Must have knowledge in business

individual and business customers operation.

to provide assistance with the  Open minded to any comments and

problems that customers may suggestions of its subordinates.

encounter.

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Accounting Staff

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 Job Description Job Specification

 Evaluate data pertaining to costs in  Preferably with a Degree in Finance

order to plan budgets. or Degrees in Accounting.
 Must be responsible in all  Must be honest and patient.
company’s cash flow.  Proficient in analyzing financial
 Keeps track of the profit of the report.
companies.  Knowledgeable in accounting
 Responsible for the reporting the information system.
daily sales.  Must have good communication
 Act as the treasurer of the company skills.
 Should be able to suggest in  Computer literate.
promoting cost effective and
efficiency on production and
operation.
 Regularly deposit and withdraw
funds of the company
 Prepares financial position of the
company.
 Responsible for accounting purposes
such as; identification of sources and
uses of capital

Marketing Head

Job Description Job Specification

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  Coordinate with the financial staff  Preferably with a Degree in

and General Manager about the Marketing.

following:  Must have a broad knowledge in

 Reports problems in selling. marketing strategies.

 Able to provide strategies for  Creative and innovative in idea-

improvement. making.

 Administers the promotional  Must have a good communication

campaign of the enterprise. skill.

 Sets strategies on how the product  Must be persuasive and sociable.

must be promoted in the market.

 Acts as the General Sales Agent.

 Sets marketing quota

Marketing Staff

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 Job Description Job Specification

 Acts as an assistant of the Marketing  Preferably with a Degree in

head. Marketing or any Business Course.

 Must promote good customer  Pleasing personality.

relationship.  Knowledgeable about marketing.

 Acts as customer assistance.  Willing to be placed on different

 Should coordinate with the marketing environment.

head about the daily sales of the  Willing to be trained.

business.

Purchasing Head

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 Job Description Job Specification

 Coordinate with the financial staff  Preferably with a Degree in

and General Manager about the Business Course.

following:  Must have leadership skills to

 Daily cost of production. direct production members.

 Able to propose solutions to  Knowledgeable on how the

problems. product is produced.

 Keeps an eye on the entire  Can work under pressure.

production process.  Must be self-organized and

 Supervises and motivates the personally neat.

production staff.

 Responsible in production

scheduling, weekly work process

and informing the GM and for the

implementation of the process.

 Regularly monitors the raw

materials inventory.

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Purchasing Staff

Job Description Job Specification

 Responsible in buying raw  Preferably with a Degree in

materials. Business Course or any Degrees.

 Responsible in producing the  Must be willing to undergo

product training.

 Cleans and organizes the working  Must be personally neat and clean.

place.  A good purchaser.

 Can work under pressure.

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 Dentist

Job Description Job Specification

 Evaluate the current health and  The ability to build relationships

condition of their patient’s teeth to with patients and colleagues;

determine diagnosis of dental  High level communication and

condition, if any interpersonal skills, for

 Inform their patients on how to interaction with patients of all

prevent dental problems and keep ages and backgrounds;

their teeth and mouth as healthy as  An interest in the welfare of

possible others and a sympathetic manner;

 Complete treatment on affected  Good administrative and

gums, decayed and fractured teeth, managerial abilities;

and perform tooth removal for  Information technology skills,

cases where there are high levels of due to the increasing use of

decay computers for keeping records

 Consider treatment methods and and accounts, and for digital

explain the options with the patient imaging of radiographs and intra-

to determine which works best for oral.

them based on their situation

 Keep all equipment functional and

clean

 Maintain dental files for all patients

 Monitor and evaluate any x-ray

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 images for any part of the patient’s

oral cavity

 Refer patients to orthodontists or

other dental specialist for more

advanced procedures and care

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1.9 FINANCIAL STATEMENT DESCRIPTION

As Feliz Dientes, Ltd. started its operation in the first quarter of 2014, it shows a

good start when it comes to its financial aspect. Since it composes of four professional

dentists who are all known to be good in their chosen field, customers prefer their

services among other dental clinics that operated for a year and had been established their

business in the said industry.

As it started, the company aimed to at least have a net operating profit of around 1

Million. But as early as the start of the 4 th quarter of operating year, Feliz Dientes almost

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meet its goal by attaining at around PHP 978,475.00 net income. It was a good indication

that the company operated well in the said industry.

At the end of the first operating year, Feliz Dientes, Ltd. earned PHP

1,092,733.07 net income. Having a good start, the company aimed a targeted net income

of 25% increase from its previous year’s operation. It was as early as July of the second

year when they had a net income of PHP 1,103,801.56, exceeding the net income of the

first year of operation.

The company ended its 2015 much more than what they expected as they

gathered at around PHP 1,866,675.88 NI and this was around 70% increase from its

previous year’s net income.

Due to its previous years’ success, the management amended their new targeted

income. They had lessen it to 15%. The reason behind it is because the reference of the

15% was the last year’s operating net income. It is hard for them to meet such goal if the

reference of it was the previous year’s operation, so in order for them to still possibly

attain, they had lowered it to 10%.

In the 2016 Financial Statement, the company reported PHP 2,219,754.17 net

income. This was around 18.91% of the previous year’s operating net income.

In its first three years of operation, Feliz Dientes earned at around PHP

5,179,163.12 accumulated net income. An aggressive performance has been observed and

investors were showing interest in the said company. Due to good performance, new

clinic was being planned to open in the coming year.

Even in the aspect of profitability of each partner reflects the good performance of

Feliz Dientes with having an average of 25% return on investment.

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 Due to a successive increase on each year’s operating income, all partners agreed

to conduct its initial CSR project entitled “Ngiti Pinoy” to show their gratitude for the

success they had upon establishing Feliz Dientes, Ltd. They had planned to allocate part

of their company’s net income for the said project. Please see Appendix 1. Financial

Performance of the company for 5 years.

1.10 FINANCIAL STATEMENT ASSUMPTIONS

1. Prepaid expense are composed of rent and insurance, rent increasing by 5%

while insurance is constant as agreed with in the insurance plan.

2. Office supplies increasing 1% per year.

3. Inventories increased 75% for the first two years, as for the business is just

starting and coping up with its demands, and then maintain a 25% increase for the later

years.

4. In the non-current assets, depreciation method used is the straight-line with the

assumption that the useful lives of different categories are as follows:

a. Machineries and equipment (useful life 15 years)

b. Building improvements (useful life 10 years)

c. Tools and instruments (useful life 5 years)

5. Notes Payable is payable for 20 years with 12% annual interest rate

6. Revenue is computed by multiplying the number of clients, rate of the operation

and number of days or weeks per year. Number of clients increasing by 10% every year,

and rate of operation by 5%.

6. Cost of service is 45% of the gross revenue.

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 7. Other operating expense is composed of the following with their corresponding

change per year.

a. Rent expense, increasing by 10% per year

b. Salaries & Wages, increasing by 10% per year

c. Professional fees, same assumption as the revenue

d. Office supplies, increasing by .1% per year

e. Utilities, 2% increase per year

f. Repairs and maintenance, .05% increase per year

g. Depreciation expense, discussed earlier

h. Taxes and licenses, fixed

i. CSR budget, 30% of net income. Given the condition that if Net Income is 1M

below, the seminar and outreach program will not be conducted and will conduct

other CSR activity to be planned upon assessment of the prior years’ net income.

P/300,000.00 will be allotted per area, so the number of outreach per year will

depend on the prior years’ income.

j. Miscellaneous expense, .08% of the revenue.

Please see Appendix 2. Notes to the Financial Statements of Feliz Dientes.

CHAPTER 2. OUR CSR PROJECT

2.1 TYPE OF CSR INITIATIVE

Feliz Dientes, Ltd. has the type of Corporate Social Responsibility

Initiative that deals with public dental health and the underlying functions

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 included therein which will focus on the project entitled “Ngiti Pinoy”. Thus a

Free Lecture regarding proper tooth brushing and oral hygiene practices. “Ngiti

Pinoy” will also have free dental consultation, distribution of dental kits and a

monthly tooth extraction that will primarily held at Barangay Gomot at San

Fabian, Pangasinan with the guidance of their community’s administration.

2.2 RELATED LITERATURE

The 2011 National Monitoring and Evaluation Dental Survey (NMEDS) says 48.3

percent of Filipinos have periodontal disease and 87.4 percent of Filipinos have dental

caries, also known as tooth decay and cavity.

According to Dr. Eduardo Janairo, director for DOH-NCR, the Philippines is far

behind other countries in the Western Pacific Region concerning oral health. Dr.Janairo

also said that the two most common oral health problems in the country are dental caries

and periodontal diseases. These two dental concerns can be avoided by improving oral

health conditions among pre-school children and inculcating a positive oral health

behavior to children who will be entering school age. Untreated dental disease may bring

inconvenient pain, which may affect a child´s performance in school, social interactions

and health.

              In general, tooth decay and gum diseases do not directly cause disability or

death. However, these conditions can weaken bodily defenses and serve as portals of

entry to other more serious and potentially dangerous systemic diseases and infections.

Serious conditions include arthritis, heart disease, endocarditis, gastro-intestinal diseases,

26
and ocular-skin-renal diseases. Aside from physical deformity, these two oral diseases

may also cause disturbance of speech significant enough to affect work performance,

nutrition, social interactions, income, and self-esteem.  Poor oral health poses detrimental

effects on school performance and mars success in later life. In fact, children who suffer

from poor oral health are 12 times more likely to have restricted-activity days (USGAO

2000).

In the Philippines, toothache is a common ailment among schoolchildren, and is

the primary cause of absenteeism from school (Araojo 2003, 103-110). Indeed, dental

and oral diseases create a silent epidemic, placing a heavy burden on Filipino

schoolchildren

CHAPTER 3. OUR CSR PLAN

3.1 ACTIVITIES PLANNED

In connection with Chapter 2, the planned activities of Feliz Dientes are

distribution of dental kits, free lecture regarding proper tooth brushing, free dental

consultation, and a monthly tooth extraction to selected remote areas In line with this,

the following activities are the assumed actions to complete the planned CSR activity:

1. Plan the activity

2. Coordinate with the community’s administration about the planned program and

oral hygiene practices and a monthly free tooth extraction. necessary requirements

needed

3. Prepare and gather the resources (physical and financial)

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 4. Organize personnel/ manpower for the implementation

5. Prepare the venue

6. Make initial enlisting of participants/patients’ name

7. Conduct the lecture program/operation

8. Evaluate the activity

3.2 SCOPE OF THE ACTIVITY

The CSR activity will focus on the project entitled “Ngiti Pinoy”. This

project aims to provide various dental mission throughout the Philippines, starting

with Barangay Gomot at San Fabian, Pangasinan focusing on the literacy about

regarding proper tooth brushing, oral hygiene practices and rendering free tooth

extraction and other basic procedures for those in need and after which their

parents will be educated regarding proper post-operative care of their child.

The company chose Barangay Gomot at San Fabian Pangasinan to hold its

first dental mission because of the inspired story of one of the owners of the

company to reach out on her hometown for the need of dental care specifically the

children within the said area. Although, the company will conduct its missions

throughout the Philippines concentrating also within the vicinity of their clinics

location.

During the activity, patients will be serviced in a first come first serve

basis policy up to 250 persons. While the volunteered dentists will be at least 20

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 for the first mission who are composed of various colleagues of the owners of the

business.

3.3 TARGET GROUP

The target group will include individuals of all age. During the activity,

individuals will be grouped into five: kids (0 to 6 years old), mixed dentition (6 to

12 years old), teenagers (13 to 18 years old), young adults (19 to 21years old),

adult (22 to 40 years old) and finally, senior (41 years old and above). In this way,

it will also be easier to distribute free products applicable to the age group at the

end of the service provided to every individual.

At a very young age, children will gain understanding on the importance

of maintaining proper care of their teeth and frequent use of dental floss for

proper gum care. The project would also encourage those in the middle age for

constant dental check-up and avail of dental procedures that would surely add to

their confidence level while applying for jobs or meeting business clients or doing

their endeavors at work. This would also equip those old individuals, who mostly

think, it is not important anymore to take care of their teeth because of their busy

lives.

Table 1. Dental Mission Program Proper

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 Day Activities
2 months prior to The CSR committee will coordinate with the administration head of

the activity the barangay or school where the activity will be conducted. Upon

proper documentation, the certification/ permit will be issued to the

committee. This certification will support the limitations and extent

of the dental mission.

Day -7 The marketing team will go to the chosen location to bring the

(a week before the tarpaulin that will be displayed in the venue of the activity. In this

dental mission) way, prospective patients would be able to know the schedule of the

dental mission. See Figure 5. Ngiti Pinoy Banner and Figure 6.

Volunteers’ T-shirts design.

Day -1 (Friday) The CSR team together with the marketing and volunteers within

the organization will go to the location to set up the activity area for

the registration booth, waiting bay, lecture place, dental check-up

area, evaluation space and dental kit stand.

Day 1 (Saturday) 1. Patients will fall in a line directly to the registration booth.

He/ she will be required to fill in a checklist form his name,

address, age and contact# (if any). See Appendix 3. Ngiti

Pinoy Checklist Form.

2. Patient will sit in the waiting bay until his name is called.

3. Once called, he will proceed to the lecture place where the

doctor will speak to him to share knowledge on the

importance of proper dental care. The doctor will also give

the patient a leaflet/ brochure containing easy steps for

proper tooth brushing and frequent dental floss. The lecture

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 will end for 5-10 minutes. See Figure 7. Ngiti Pinoy

Leaflet/ Brochure.

4. After the lecture, the doctor will now examine the patient

and will explain the condition of the patient’s teeth. The

doctor will also advise if the patient needs to return for tooth

extraction, prophylaxis or any basic procedure. The doctor

will input the data on the checklist form.

5. The patient will go to the evaluation area to fill in the

feedback form. After completing the form, the patient will

return both the checklist and feedback form to the

committee, and in return, he will receive a dental kit. Dental

kit will be distributed based on the age group. See

Appendix 4. Ngiti Pinoy Feedback Form and Figure 8.

Dental Kit Bag.

Day 2 (Sunday) 1. Patients who are scheduled for follow-up procedure will

proceed to the registration booth to confirm the data noted

by the doctor in the checklist form.

2. After verification, he will go to the dentist who will conduct

the procedure. The doctor will also explain post dental

procedure to the patient and will again input the data in the

checklist form.

3. The patient will return the checklist form and in return, he

will receive medicines e.g. pain reliever for those with tooth

extracted or applicable first aid kit e.g. ice bag and face

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 towel.

Figure 5. Ngiti Pinoy Banner

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Figure 6. Volunteers’ T-shirts Design

33
Figure 7. Ngiti Pinoy Leaflet/ Brochure

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Figure 8. Dental Kit Bag

3.4 DURATION OF THE ACTIVITY

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 The dental mission is a 5-year long project depending on the feedback.

Missions will be made on a quarterly basis on selected areas. 2 days (Saturday

and Sunday) will be set for every dental mission on one area. So, one areas will be

visited monthly, 4 in a year, and a total of 20 areas in 5 years.

3.5 BUDGET OF THE CSR PLAN

Upon consultation and further review of our Financial Analyst, we come

up with the proposed budget of PHP 665,926.25.

The said budget was about an estimate of 30% of the previous year’s net

operating income. It has also been approved by the committee and has been

finalized by the Accounting Department. It was also aligned with the rules and

regulation of the company.

From the last year’s operation, the company performed well and exceeded

its targeted income. The company aimed to have at least 15% increase from its

previous years of operation and they exceeded the said objectives by gaining of

around 18.91% increase.

Since the assessed budget in every Dental Mission was with a minimum

cost of PHP 300,000.00 and the approved CSR budget for the whole year has an

amount of PHP 665,926.25, the committee decided to conduct two Dental

Missions for the current year.

Table 2: First Year’s CSR Budget

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 Title Description Allocated Budget Percentage
This includes all the needed

materials for distribution such as

Dental Kit the toothbrush, toothpaste, dental PHP 219,023.14 65.78%

floss, mouthwash, face towels

and post procedures medicines.

This includes transportation of

Transportation volunteers to the location as well

PHP 26,736.94 8.03%
Expense as the hired trucks that will carry

all the products and materials.

This covers all the expenses from

Preparatory planning stage, preparation of the

PHP 24,639.27 7.40%
Expense activities as well as all the

expense recognize at the end.

It covers all unexpected expenses

Miscellaneous of the said activity. This will also

PHP 45,282.99 13.60%
Expense serve as a budget for all other

expenses
This includes all related

marketing expenses such as

Advertising
flyers, brochures, tarpaulin, T- PHP 15,649.27 4.70%
Expense
shirts and the likes that will be

used in the activity.

Unallocated budget This will be allocated to the next PHP 1,631.51 0.49%

CSR activities and will also

serve as fund for the CSR project

37
 NGITI PINOY.

3.5.1 DELIMITATIONS OF CSR BUDGET:

The pursuance of the “Ngiti Pinoy” project was only limited to previous

year financial performance of the company. As a general assessment, every

mission conducted per area/ location may cost an approximately PHP 300,000.00

(minimum). With this, the company created a rule as the basis for the

specification of the project.

As per agreed by the management as well as with the coordination of the

partners, the budget for the CSR will be based on the 30% on previous year’s Net

Income as long as the previous net operating income is at least PHP 1,000,000.00.

Rules:

1. To be able to conduct dental mission for the year, the company should at least

have a minimum of PHP 1,000,000.00 net operating income from the previous

year. Therefore, no dental mission will be conducted if the company’s net income

for the previous year was less than PHP 1,000,000.00.

2. The bases for the budget of the “Ngiti Pinoy” Project is 30% of the net income.

Therefore, if the company attained an amount exceeding to PHP 300,000.00

budget, the company could possibly conduct to more than one dental mission

within a year since the budget per location is a minimum amount of PHP

300,000.00.

38
 3. In exception to the latter, when there is an excess budget in the previous year CSR

project, and the accumulated amount from the current budget would meet the

needed amount of PHP 300,000.00, the mission will still proceed.

4. When the current budget as well as the excess budgeted amount from the previous

year mission does not exceed or even meets the expected amount of PHP

300,000.00, dental mission will be cancelled for the year. The budget will still be

allocated to the “Ngiti Pinoy” Project for the following year.

5. Once it does not attain the required amount, 50% of the budget for the dental

mission will be donated to other related organization or foundation who conducts

the same activities as a continuance of the legacy of Feliz Dientes, which is to

bring smile in the face of every Filipino.

3.6 CSR INITIATIVE ASSESSMENT

To help identify the gaps and opportunities and hereby improve our CSR

Project, a proper assessment is needed. And for us to have a good CSR plan and at the

same time not to compromise the quality of service we provide to our valued

customer, an appointed committee were being assigned to create a good CSR project.

Feliz Dientes, Ltd. started their CSR Project on their fourth year of

operation. And since the company shows good indication on its financial stability on

the first three years of operation, as early as the first quarter of the fourth year, the

first CSR Project was being conducted.

Table 3. Summary of the Proposed CSR Initiative

39
What Type of CSR Activity Dental Mission under the project name “Ngiti Pinoy” that

deals with public dental health.

Activities Planned In connection with Chapter 2, the planned activity of

Feliz Dientes, Ltd. is a free lecture regarding proper tooth

brushing, In line with this, the following activities are the

assumed actions to complete the planned CSR activity:

1. Plan the activity

2. Coordinate with the community’s administration

about the planned program and oral hygiene

practices and a monthly free tooth extraction.

necessary requirements needed

3. Prepare and gather the resources (physical and

financial)

4. Mobilize personnel/ manpower for the

implementation

5. Prepare the venue

6. Make initial enlisting of participants/patients’

name

7. Conduct the lecture program/operation

8. Evaluate the activity

Scope of the Activity The CSR activity will focus on the project entitled “Ngiti

40
 Pinoy”. This project aims to provide various dental mission

throughout the Philippines, starting with Barangay Gomot at

San Fabian, Pangasinan focusing on the literacy about

regarding proper tooth brushing, oral hygiene practices and

rendering free tooth extraction and other basic procedures

for those in need and after which their parents will be

educated regarding proper post-operative care of their child.

The company chose Barangay Gomot at San Fabian

Pangasinan to hold its first dental mission because of the

inspired story of one of the owners of the company to reach

out on her hometown for the need of dental care specifically

the children within the said area. Although, the company

will conduct its missions throughout the Philippines

concentrating also within the vicinity of their clinics

location.

During the activity, patients will be serviced in a first

come first serve basis policy up to 250 persons. While the

volunteered dentists will be at least 20 for the first mission

who are composed of various colleagues of the owners of

the business.

Target Group The target group will include individuals of all age.

During the activity, individuals will be grouped into five:

kids (0 to 6 years old), mixed dentition (6 to 12 years old),

41
 teenagers (13 to 18 years old), young adults (19 to 21years

old), adult (22 to 40 years old) and finally, senior (41 years

old and above). In this way, it will also be easier to

distribute free products applicable to the age group at the

end of the service provided to every individual.

At a very young age, children will gain understanding on

the importance of maintaining proper care of their teeth and

frequent use of dental floss for proper gum care. The

project would also encourage those in the middle age for

constant dental check-up and avail of dental procedures that

would surely add to their confidence level while applying

for jobs or meeting business clients or doing their endeavors

at work. This would also equip those old individuals, who

mostly think, it is not important anymore to take care of

their teeth because of their busy lives.

Program Proper 2 months prior to the activity

The CSR committee will coordinate with the administration

head of the barangay or school where the activity will be

conducted. Upon proper documentation, the certification/

permit will be issued to the committee. This certification

will support the limitations and extent of the dental mission.

Day -7 (a week before the dental mission)

The marketing team will go to the chosen location to bring

42
the tarpaulin that will be displayed in the venue of the

activity. In this way, prospective patients would be able to

know the schedule of the dental mission.

Day -1 (Friday)

The CSR team together with the marketing and volunteers

within the organization will go to the location to set up the

activity area for the registration booth, waiting bay, lecture

place, dental check-up area, evaluation space and dental kit

stand.

Day 1 (Saturday)

1. Patients will fall in a line directly to the registration

booth. He/ she will be required to fill in a checklist

form his name, address, age and contact# (if any).

2. Patient will sit in the waiting bay until his name is

called.

3. Once called, he will proceed to the lecture place

where the doctor will speak to him to share

knowledge on the importance of proper dental care.

The doctor will also give the patient a leaflet/

brochure containing easy steps for proper tooth

brushing and frequent dental floss. The lecture will

end for 5-10 minutes.

4. After the lecture, the doctor will now examine the

43
 patient and will explain the condition of the patient’s

teeth. The doctor will also advise if the patient needs

to return for tooth extraction, prophylaxis or any

basic procedure. The doctor will input the data on

the checklist form.

5. The patient will go to the evaluation area to fill in

the feedback form. After completing the form, the

patient will return both the checklist and feedback

form to the committee, and in return, he will receive

a dental kit. Dental kit will be distributed based on

the age group.

Day 2 (Sunday)

1. Patients who are scheduled for follow-up procedure

will proceed to the registration booth to confirm the

data noted by the doctor in the checklist form.

2. After verification, he will go to the dentist who will

conduct the procedure. The doctor will also explain

post dental procedure to the patient and will again

input the data in the checklist form.

3. The patient will return the checklist form and in

return, he will receive medicines e.g. pain reliever

for those with tooth extracted or applicable first aid

kit e.g. ice bag and face towel.

44
Date or Duration of the The dental mission is a 5-year long project depending on the

Activity feedback. Missions will be made on a quarterly basis on

selected areas. 2 days (Saturday and Sunday) will be set for

every dental mission on one area. So, one areas will be

visited monthly, 4 in a year, and a total of 20 areas in 5

years.

3.6.1 ACTVITY’S SUCCESS FACTORS

Critical success factor (CSF) is the term for an element that is necessary

for an organization or project to achieve its mission. These are few things that

must go well to ensure success for an activity, therefore, they represent those

managerial area that must be given special and continual attention to bring about

high performance.

CSF vary depending on the activity conducted, and for Ngiti Pinoy, after

some research and project evaluation, the group came up with the following

success factors:

Leadership

No activity can expected to be successful without effective leadership. A good

leader inspires, guides and motivates the team while directing them toward a

common goal. Without someone to monitor and keep the group focused, they will

flounder and fail to achieve success.

Goals

Successful businesses must have clearly defined goals, the same is true in

conducting a simple activity. Members should know where the team is going and

45
how it is going to get there. The goals should be specific, attainable and attached

to a timetable. The environment of the activity should be such that attaining the

goals is always the focus.

Plan and Schedule

Proper schedule refers to the importance of developing a detailed plan of the

required stages of the activity. Planning increases the efficiency of the team, it

gives them right direction and guidance. In this stage, delegation of duties and

responsibilities would be clear, time frame and deadlines should also be provided.

Given a detailed plan, the team would be able to review if things are working out

fine and on time. Precautionary measures can be applied, if perceived to be

needed.

Roles and Responsibilities

Once leadership and goals are in place, it is important to define the roles and

responsibilities necessary to achieve those goals. Make sure that all necessary

resources are available to those responsible for working toward a specific

objective. Before assigning roles, leadership should ensure that those tasked with

certain responsibilities have the necessary training and resources to effectively

work toward and achieve their designated assignment.

Teamwork and Communication

Successful activity encourage cooperation and teamwork. Because all members

are working toward a common goal, the sharing of information and cooperation

across the team should be encouraged. The technology and infrastructure should

46
be in place to ensure that information sharing and teamwork are possible, and all

barriers that might interfere with information dissemination should be removed.

Given there is good communication within the team, we should not set aside other

external concerns which would also be critical for the success of the activity. This

would include considering the expectations of the clientele, what they really need

and what they want to gain upon participating in the said activity. Requirements

of the local government official should not be disregarded. Both these

stakeholders should be given enough attention and clear communication would be

the key.

Measures of Success

The team must employ methods and procedures that are measurable. It is difficult

to declare success if there is nothing in place that can be measured to show proof

of that success. Critical success factors should not be confused with key

performance indicators. Critical success factors are measured strategically,

whereas key performance indicators are quantitatively measured. For example, a

critical success factor might be the implementation of a new sales strategy, and

the key performance indicator would be the resultant increase in the number of

sales.

For this CSR initiative to be said successful must consist of the following criteria:

a. Good feedback from the participants. It will be evaluated through the

feedback form to be distributed after the seminar. If negative comments appear, or

worst become dominant, the team shall examine and consider those especially the

suggestions, if there were any.

47
b. The number of expected participants was attained or better if even the

extra kits would be distributed, this would mean that the advertisements and

invitations are effective and the residents within the vicinity are well informed.

c. The number of volunteer dentists, if enough to accommodate all the

participants in a timely and effective manner. Also, another measure would be if

the numbers of volunteers continually increase or if there are still enough though

some becomes unavailable due to conflicting schedules.

d. After a year, the team will appoint a person or more to have a survey as to

what was the effect of the activity to the participants’ lifestyle, how many learned

to give importance and proper attention to their oral health. If 5 out of the 10

participants show healthier teeth then the activity is considered successful. Further

improvements and higher criteria will be set as more outreach programs are

conducted.

e. Because the dental mission opens the awareness of the participants as to

the importance of oral hygiene, potential clients are also expected after

conducting the activity to those near the vicinity of the clinic. A measure of

success would be if those who joined the activity later on attends to the clinic for

a regular cleaning and check-up, or referrals from them would also count.

48
 BIBLIOGRAPHY

Brauth, Peri (2012) “Redefining the Corporation’s Role in Society”

Friedman,Milton (1970) “The Social Responsibility of Business is to Increase its

Profits”

Keys, Tracey (2009) “Making the most of corporate social responsibility”

http://www.mckinsey.com/insights/corporate_social_responsibility/making_the_

most_of_corporate_social_responsibility

http://barrettfamilydental.com/2014/05/brief-history-dentistry/

http://managementstudyguide.com/examples-of-corporate-social-

responsibility.htm

Corporate Social responsibility and Project Management by David Nielsen, PMP

January 2010

http://onstrategyhq.com/resources/strategic-corporate-social-responsibility/

http://www.census.gov.ph

http://www.philstar.com/news-feature/2014/06/08/1332346/doh-dental-cavities-

bad-ones-health

http://www.interaksyon.com/article/78433/with-nearly-9-of-10-filipinos-

suffering-dental-disease-doh-steps-up-oral-health-drive-in-schools

http://www.dental-

tribune.com/articles/news/asiapacific/549_interview_the_oral_health_of_filipino_

children_is_in_an_alarming_state.html

http://www.todayifoundout.com/index.php/2012/12/the-history-of-dentistry/

49
 APPENDICES

Appendix 1.A Financial Position of the company for 5 years

FELIZ DIENTES, LTD.

PROJECTED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2018

2014 2015 2016 2017 2018

A S S E T S
Current Assets
Cash 658,000.00 954,119.64 2,142,843.28 4,057,158.88 4,518,523.69
Prepayments 1,650,000.00 1,725,000.00 1,800,000.00 1,875,000.00 1,950,000.00
Office Supplies 25,675.00 25,931.75 26,191.07 26,452.98 26,717.51
Inventories 894,947.84 1,566,158.72 2,740,777.76 3,425,972.20 4,282,465.25
Total Current Assets 3,228,622.84 4,271,210.11 6,709,812.11 9,384,584.06 10,777,706.44
Non-current Assets
Property, plant and equipment 7,550,666.67 6,791,333.33 6,032,000.00 5,272,666.67 4,513,333.33

TOTAL ASSETS 10,779,289.51 11,062,543.44 12,741,812.11 14,657,250.73 15,291,039.78

LIABILITIES AND PARTNERS' EQUITY

Liabilities
Accounts payable 2,686,556.44 1,353,134.50 1,062,649.00 1,331,948.87 1,351,806.45
Notes payable 5,000,000.00 4,750,000.00 4,500,000.00 4,250,000.00 4,000,000.00
Total Liabities 7,686,556.44 6,103,134.50 5,562,649.00 5,581,948.87 5,351,806.45

Partners' equity
Agas, capital 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31
Cruz, capital 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31
Fajutagana, capital 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31
Samonte, capital 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31
Santos, capital 1,546,366.53 2,479,704.47 3,589,581.56 4,500,018.28 5,639,489.25
Total Partners' Equity 3,092,733.07 4,959,408.94 7,179,163.11 9,000,036.57 11,278,978.49

Appendix 1.B Financial Performance of the company for 5 years

FELIZ DIENTES, LTD.

PROJECTED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2014 TO DECEMBER 31, 2018

2014 2015 2016 2017 2018

Revenue 17,232,000.00 19,902,960.00 21,712,320.00 23,521,680.00 25,331,040.00

Cost of sales 7,754,400.00 8,956,332.00 9,770,544.00 10,584,756.00 11,398,968.00
Gross Profit 9,477,600.00 10,946,628.00 11,941,776.00 12,936,924.00 13,932,072.00
Other operating exense 8,351,966.93 9,032,246.14 9,614,879.67 10,913,192.60 11,427,203.89
Operating profit 1,125,633.07 1,914,381.86 2,326,896.33 2,023,731.40 2,504,868.11
Finance income 32,900.00 47,705.98 107,142.16 202,857.94 225,926.18
Finance cost 65,800.00 95,411.96 214,284.33 405,715.89 451,852.37

Appendix 1.C Partners’ Equity of the company for 5 years

50
 FELIZ DIENTES, LTD.
PROJECTED STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2014 TO DECEMBER 31, 2018

2014 2015 2016 2017 2018

Agas, capital (12.5%)

Beginning Balance 250,000.00 386,591.63 619,926.12 897,395.39 1,125,004.57
Share in income 136,591.63 233,334.48 277,469.27 227,609.18 284,867.74
Ending Balance 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31

Cruz, capital (12.5%)

Beginning Balance 250,000.00 386,591.63 619,926.12 897,395.39 1,125,004.57
Share in income 136,591.63 233,334.48 277,469.27 227,609.18 284,867.74
Ending Balance 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31

Fajutagana, capital (12.5%)

Beginning Balance 250,000.00 386,591.63 619,926.12 897,395.39 1,125,004.57
Share in income 136,591.63 233,334.48 277,469.27 227,609.18 284,867.74
Ending Balance 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31

Samonte, capital (12.5%)

Beginning Balance 250,000.00 386,591.63 619,926.12 897,395.39 1,125,004.57
Share in income 136,591.63 233,334.48 277,469.27 227,609.18 284,867.74
Ending Balance 386,591.63 619,926.12 897,395.39 1,125,004.57 1,409,872.31

Santos, capital (50%)

Beginning Balance 1,000,000.00 1,546,366.53 2,479,704.47 3,589,581.56 4,500,018.28
Share in income 546,366.53 933,337.94 1,109,877.08 910,436.73 1,139,470.96
Ending Balance 1,546,366.53 2,479,704.47 3,589,581.56 4,500,018.28 5,639,489.25

51
 Appendix 2. Notes to the Financial Statements of Feliz Dientes

FELIZ DIENTES, LTD.

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2013 AND 2012

(Amounts in Philippine Peso)

1. PARTNERSHIP INFORMATION

Feliz Dientes, Ltd., the (Company) was established January 1, 2014. The
Company’s primary purpose is to provide dental services such as check-ups,
cleanings, and urgent oral care.

The registered office address and place of business of the Company is at UG/F
Fisher Mall, Quezon Ave, Quezon City, Metro Manila with an office extension at
LG/F SM City Bacoor, Tirona Highway, Bacoor City, 4102 Cavite.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies that have been used in the preparation of these
financial statements are summarized below and in the succeeding pages. These
policies have been consistently applied to all the years presented, unless otherwise
stated.

Basis of Preparation of Financial Statements

a. Statement of Compliance with Philippine Financial Reporting Standards

The financial statements of the Company have been prepared in accordance

with Philippine Financial Reporting Standards (PFRSs). PFRSs are adopted
by the Financial Reporting Standards Council (FRSC) from the
pronouncements issued by the International Accounting Standards Board
(IASB).

The financial statements have been prepared using the measurement bases
specified by PFRS for each type of asset, liability, income and expense. The
measurement bases are more fully described in the accounting policies that
follow.

52
b. Presentation of Financial Statements

The financial statements are presented in accordance with Philippine

Accounting Standards (PAS) 1, Presentation of Financial Statements. The
Company presents all items of income and expenses in a single statement of
comprehensive income.

Five comparative periods are presented for the statement of financial position
when the Company applies an accounting policy retrospectively, makes a
retrospective restatement of items in its financial statements, or reclassifies
items in the financial statements.

c. Functional and Presentation Currency

These financial statements are presented in Philippine peso, the Company’s

functional currency, and all values represent absolute amounts except when
otherwise indicated.

Items included in the financial statements of the Company are measured

using its functional currency, the currency of the primary economic
environment in which the Company operates.

Financial Assets

Financial assets are recognized when the Company becomes a party to the
contractual terms of the financial instrument. Financial assets other than those
designated and effective as hedging instruments are classified into the following
categories: financial assets at fair value through profit or loss (FVTPL), loans and
receivables, held-to-maturity (HTM) investments and available-for-sale (AFS)
financial assets. Financial assets are assigned to the different categories by
management on initial recognition, depending on the purpose for which the
investments were acquired.

Regular purchases and sales of financial assets are recognized on their trade date.
All financial assets that are not classified as at FVTPL are initially recognized at fair
value plus any directly attributable transaction costs. Financial assets carried at
FVTPL are initially recorded at fair value and transaction costs related to it are
recognized in profit or loss.

53
 The applicable financial assets to the Company relates mainly to loans and
receivables.

Loans and receivables are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market. They arise when
the Company provides money, goods or services directly to a debtor with no
intention of trading the receivables. They are included in current assets, except for
maturities greater than 12 months after the reporting period which are classified as
non-current assets.

Loans and receivables are subsequently measured at amortized cost using the
effective interest method, less impairment loss, if any. Impairment loss is provided
when there is an objective evidence that the Company will not be able to collect all
amounts due to it in accordance with the original terms of the receivables. The
amount of the impairment loss is determined as the difference between the assets’
carrying amount and the present value of estimated future cash flows, discounted
at the effective interest rate.

The Company’s financial assets categorized as loans and receivables are presented
as Cash and Trade and Other Receivables in the statement of financial position.
Cash include cash on hand and bank deposits.

Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is
determined using the first-in, first-out method. The cost of raw materials include
all cost directly attributable to acquisition such as the purchase price, import duties
and other taxes that are not subsequently recoverable from taxing authorities.

Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and the estimated costs necessary
to make the sale. Net realizable value of raw materials is the current replacement
cost.

Prepayments

Prepayments and other current assets pertain to other resources controlled by the
Company as a result of past events. They are recognized in the financial statements
when it is probable that the future economic benefits will flow to the entity and the
asset has a cost or value that can be measured reliably.

Other recognized assets of similar nature, where future economic benefits are expected
to flow to the Company beyond one year after the end of the reporting period (or
in the normal operating cycle of the business, if longer), are classified as non-
current assets.

54
Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation
and any impairment in value.

The cost of an asset comprises its purchase price and directly attributable costs of
bringing the asset to working condition for its intended use. Expenditures for
additions, major improvements and renewals are capitalized. Expenditures for
repairs and maintenance are charged to expense as incurred.

Following initial recognition at cost, buildings improvements are carried at

revalued amounts which are the fair values at the date of the revaluation, as
determined by independent appraisers, less subsequent accumulated depreciation
and any accumulated impairment losses. Revalued amounts are fair market values
determined based on appraisals by external professional valuers unless market-
based factors indicate immediate impairment risk. Fair value is determined by
reference to market-based evidence, which is the amount for which the assets
could be exchanged between a knowledgeable willing buyer and a knowledgeable
willing seller in an arm’s length transaction as at the valuation date.

Depreciation is computed on the straight-line basis over the estimated useful lives
of the assets as follows:

Machinery and equipment 15 years

Building improvments 10 years
Tools and instruments 5 years

An asset’s carrying amount is written down immediately to its recoverable amount

if the asset’s carrying amount is greater than its estimated recoverable amount.

The residual values and estimated useful lives of property, plant and equipment are
reviewed, and adjusted if appropriate, at the end of each reporting period.

An item of property, plant and equipment, including the related accumulated

depreciation and impairment losses, is derecognized upon disposal or when no
future economic benefits are expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) is
included in profit or loss in the year the item is derecognized.

Financial Liabilities

Financial liabilities, which include interest-bearing loans and borrowings, trade and
other payables, except due to related parties and other non-current liabilities, are

55
 recognized when the Company becomes a party to the contractual terms of the
instrument. All interest-related charges incurred on a financial liability are
recognized as an expense in profit or loss under the caption Finance Costs in the
statement of comprehensive income.

Interest-bearing loans and borrowings are raised for support of long-term funding
of operations. Finance charges, including premiums payable on settlement or
redemption and direct issue costs, are charged to profit or loss on an accrual basis
using the effective interest method and are added to the carrying amount of the
instrument to the extent that these are not settled in the period in which they arise.

Trade and other payables, due to related parties and other non-current liabilities
are recognized initially at their fair values and subsequently measured at
amortized cost, using effective interest method for maturities beyond one year, less
settlement payments.

Financial liabilities are classified as current liabilities if payment is due to be settled

within one year or less after the end of the reporting period (or in the normal
operating cycle of the business, if longer), or the Company does not have an
unconditional right to defer settlement of the liability for at least twelve months
after the end of the reporting period. Otherwise, these are presented as non-
current liabilities.

Financial liabilities are derecognized from the statement of financial position only when
the obligations are extinguished either through discharge, cancellation or
expiration.

Provisions and Contingencies

Provisions are recognized when present obligations will probably lead to an

outflow of economic resources and they can be estimated reliably even if the
timing or amount of the outflow may still be uncertain. A present obligation arises
from the presence of a legal or constructive obligation that has resulted from past
events.

Provisions are measured at the estimated expenditure required to settle the present
obligation, based on the most reliable evidence available at the end of the reporting
period, including the risks and uncertainties associated with the present obligation.
Where there are a number of similar obligations, the likelihood that an outflow will
be required in settlement is determined by considering the class of obligations as a
whole. When time value of money is material, long-term provisions are
discounted to their present values using a pretax rate that reflects market
assessments and the risks specific to the obligation. The increase in the provision
due to passage of time is recognized as interest expense. Provisions are reviewed at
the end of each reporting period and adjusted to reflect the current best estimate.

56
In those cases where the possible outflow of economic resource as a result of
present obligations is considered improbable or remote, or the amount to be
provided for cannot be measured reliably, no liability is recognized in the financial
statements. Similarly, possible inflows of economic benefits to the Company that
do not yet meet the recognition criteria of an asset are considered contingent
assets, hence, are not recognized in the financial statements. On the other hand,
any reimbursement that the Company can be virtually certain to collect from a
third party with respect to the obligation is recognized as a separate asset not
exceeding the amount of the related provision.

Revenue and Expense Recognition

Revenue comprises revenue from sale of goods and rendering of services

measured by reference to the fair value of consideration received or receivable by
the Company for goods sold and services rendered, excluding VAT, rebates and
trade discounts.

Revenue is recognized to the extent that the revenue can be reliably measured; it is
probable that future economic benefits will flow to the Company; and the costs
incurred or to be incurred can be measured reliably. In addition, the following
specific recognition criteria must also be met before revenue is recognized:

a. Sale of goods - Revenue is recognized when the risks and rewards of ownership
of the goods have passed to the buyer, i.e., generally when the customer has
acknowledged delivery of goods.

b. Rendering of services – Revenue is recognized by reference to the stage of

completion. The stage of completion is measured by reference to the labor
hours incurred to date as a percentage of total estimated labor hours for each
contract. This is generally when the customer has approved the services that
have been provided. Where the outcome of the contract cannot be measured
reliably, revenue is recognized only to the extent of the expenses recognized
that are recoverable.

Cost and expenses are recognized in profit or loss upon utilization of goods or
services or at the date they are incurred.

Impairment of Assets

At each reporting date, property, plant and equipment, intangible assets, and
investments in an associate are reviewed to determine whether there is any
indication that those assets have suffered an impairment loss. If there is an
indication of possible impairment, the recoverable amount of any affected asset (or
group of related assets) is estimated and compared with its carrying amount. If
estimated recoverable amount is lower, the carrying amount is reduced to its

57
estimated recoverable amount, and an impairment loss is recognized immediately
in profit or loss.

Similarly, at each reporting date, inventories are assessed for impairment by

comparing the carrying amount of each item of inventory (or group of similar
items) with its selling price less costs to complete and sell. If an item of inventory
(or group of similar items) is impaired, its carrying amount is reduced to selling
price less costs to complete and sell, and an impairment loss is recognized
immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset (or
group of related assets) is increased to the revised estimate of its recoverable
amount (estimated selling price less costs to complete and sell, in the case of
inventories), but not in excess of the amount that would have been determined had
no impairment loss been recognized for the asset (group of related assets) in prior
years. A reversal of an impairment loss is recognized immediately in profit or loss.

Short-term Employee Benefits

Wages, salaries, bonuses and social security contributions are recognized as an

expense in the year in which the associated services are rendered by employees.
Short term accumulating compensated absences such as paid annual leave are
recognized when services are rendered by employees that increase their
entitlement to future compensated absences. Short term non-accumulating
compensated absences such as sick leave are recognized when the absences occur.

Partners’ Equity

The partnership involves contribution of money, property, labor or skill of each

partner for a purpose of dividing profits among themselves. Profit or loss
distribution will be based on the partners’ capital contribution.

The capital contribution of each partner to the partnership shall consist of the
following property, services, or cash which each partner agrees to contribute:

58
 Name Of Partner Capital Contribution % Share
Agas, Mary Grace 250,000.00 12.5
Cruz, Mel Jenn Anell 250,000.00 12.5
Fajutagana, Edelwin 250,000.00 12.5
Samonte, Rolette 250,000.00 12.5
Santos, Diane 1,000,000.00 50

Events after the End of the Reporting Period

Any post-year-end event that provides additional information about the

Company’s financial position at the end of the reporting period (adjusting event) is
reflected in the financial statements. Post-year-end events that are not adjusting
events, if any, are disclosed when material to the financial statements.

3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES

The Company’s financial statements prepared in accordance with PFRS require

management to make judgments and estimates that affect amounts reported in the
financial statements and related notes. Judgments and estimates are continually
evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under
circumstances. Actual results may ultimately differ for these estimates.

Critical Management Judgments in Applying Accounting Policies

In the process of applying the Company’s accounting policies, management has made
the following judgments, apart from those involving estimation, which have the
most significant effect on the amounts recognized in the financial statements:

Provisions and Contingencies

Judgment is exercised by management to distinguish between provisions and

contingencies. Policies on recognition and disclosure of provision and
disclosure of contingencies are discussed in Note 2 and relevant disclosures
are presented in Note 22.

Key Sources of Estimation Uncertainty

The following are the key assumptions concerning the future , and other key sources of
estimation uncertainty at the end of the reporting period, that have a significant
risk of causing a material adjustment to the carrying amounts of asset and
liabilities within the next financial year:

59
 a. Determining Net Realizable Value of Inventories

In determining the net realizable value of inventories, management takes into

account the most reliable evidence available at the dates the estimates are
made. The Company’s core business is continuously subject to rapid
technology changes which may cause inventory obsolescence. Moreover,
future realization of the carrying amounts of inventories as presented in Note
5 is affected by price changes in different market segments of computer
hardware components. Both aspects are considered key sources of estimation
uncertainty and may cause significant adjustments to the Company’s
inventories within the next financial year.

b. Estimating Useful Lives of Property, Plant and Equipment

The Company estimates the useful lives of property, plant and equipment
and intangible assets based on the period over which the assets are expected
to be available for use. The estimated useful lives of property, plant and
equipment and intangible assets are reviewed periodically and are updated if
expectations differ from previous estimates due to physical wear and tear,
technical or commercial obsolescence and legal or other limits on the use of
the assets.

The carrying amounts of property, plant and equipment and intangible assets
are analyzed in Notes 7. Based on management’s assessment as at December
31, 2013 and 2012, there is no change in estimated useful lives of those assets
during those years. Actual results, however, may vary due to changes in
estimates brought about by changes in factors mentioned above.

4. PREPAYMENTS

This account is composed of the following:

2014 2015 2016 2017 2018

Rent 1,500,000 1,575,000 1,650,000 1,725,000

1,800,000
Insurance 150,000 150,000 150,000 150,000
150,000

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 1,650,000 1,725,000 1,800,000 1,875,000
1,950,000

5. OFFICE SUPPLIES

This account represents all the supplies regularly used in office by the Company. It
includes small, expendable, daily use items such as paper clips, post-it notes, and
staples, small machines such as hole punches, binders, staplers and laminators,
writing utensils and paper, but also encompasses higher-cost equipment like cash
registers.

6. INVENTORIES

This account is composed of the dental supplies that are necessary for the business
operations. This includes, dental flaws, tooth paste, gloves, and the likes. There
were no express recognized related to impairment of inventories during the
period.

7. PROPERTY, PLANT AND EQUIPMENT

The gross carrying amounts and accumulated depreciation at the beginning and end of
the 5-year period are shown below:

2014 2015 2016 2017 2018

Machineries and equipment P 5,750,000 P 5,750,000 P 5,750,000 P5,750,000 P

5,750,000
Accumulated depreciation ( 383,333 ) ( 766,667) ( 1,150,000 ) ( 1,533,333 ) (
1,916,667)

61
 Net carrying amount P 5,366,667 P 4,983,333 P 4,600,000 P4,216,667 P
3,833,333

Building improvements P 1,360,000 P 1,360,000 P 1,360,000 P1,360,000 P

1,360,000
Accumulated depreciation ( 136,000 ) ( 272,000) ( 408,000 ) ( 544,000 ) (
680,000)

Net carrying amount P 1,224,000 P 1,088,000 P 952,000 P 816,000 P

680,000

Tools and instruments P 1,200,000 P 1,200,000 P 1,200,000 P1,200,000 P

1,200,000
Accumulated depreciation ( 240,000 ) ( 480,000) ( 720,000 ) ( 960,000 ) (
1,200,000)

Net carrying amount P 960,000 P 720,000 P 480,000 P 240,000 P -

P 7,550,667 P 6,791,333 P 6,032,000 P5,272,667 P

4,513,333

As of December 31, 2013, management believes that there is no indication of

impairment and that the carrying value of the property, plant and equipment can
be recovered through use in operations.

8. ACCOUNTS PAYABLE

This account consists of the liabilities to other parties in relation to the ordinary course of
business and payable within the normal operating cycle.

9. INTEREST-BEARING NOTE

The interest-bearing note represents the secured loans from a local commercial bank.
This note payable bears interest rate at 5%, payable within 20 years.

10. REVENUES

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 The breakdown of this account is as follows:

No. of No. of
Procedure Rate Client days/weeks month 2014 2015 2016 2017 2018
Pasta 1,000.00 10 24 12 2,880,000 3,326,400 3,628,800 3,931,200 4,233,600
Tooth extraction 1,000.00 10 24 12 2,880,000 3,326,400 3,628,800 3,931,200 4,233,600
Impaction 10,000.00 2 4 12 960,000 1,108,800 1,209,600 1,310,400 1,411,200
Prophylaxis 800.00 20 24 12 4,608,000 5,322,240 5,806,080 6,289,920 6,773,760
Root canal treatment 18,000.00 1 24 12 5,184,000 5,987,520 6,531,840 7,076,160 7,620,480
Fixed partial denture 5,000.00 3 4 12 720,000 831,600 907,200 982,800 1,058,400
17,232,000 19,902,960 21,712,320 23,521,680 25,331,040

11. COST OF SERVICE

The details of cost of service is determined to be 45% of the revenue.

12. OTHER OPERATING EXPENSES

The following are details of other operating expenses:

Other operating expense 2014 2015 2016 2017 2018

Rent expense 1500000 1575000 1650000 1725000 1800000
Salaries & Wages 408000 448800 489600 530400 571200
Professional fees 400 40 24 12 4896000 5439456 5886950 6383894 6881818
1000 6 4 12
Electricit
Office supplies Water Telephone 17232 19902.96 21712.32 23521.68 25331.04
y
Utilities 50000 10000 2000 744000 758880 774057.6 789539 805330
Repairs and maintenance 8616 9951.48 10856.16 11760.84 12665.52
Depreciation expense 759333 759333 759333 759333 759333

Appendix 3. Ngiti Pinoy Checklist Form

63
 Feliz Dientes, Ltd. Checklist Form
   
Name:        
Address:        
         
Age:        
Contact# (if any):      
   
Lecture Completed (Y/N):    
   
Check-up Completed (Y/N):    
   
Doctor's Notes:  
         
         
         
         
         
   
For Follow-up Check-up
(Y/N):    
   
Procedure Completed
(Y/N):    
   
Doctor's Notes:  
         
         
         
         
         

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 Appendix 4. Ngiti Pinoy Feedback Form

Feliz Dientes, Ltd.

Feedback Form – Dental Mission
Date:
Feliz Dientes, Ltd.
To improve our services, we would like to hear Feedback Form – Dental Mission
your comments/suggestions: Petsa:

Convenience of the schedule: Upang mapabuti ang aming serbisyo, nais

o Very convenient naming marinig ang inyong mga komento:
o Convenient
o Somewhat Convenient Kaluwagan o kaginhawaan ng iskedyul:
o Not Convenient o Napakaluwag/ Napakaginhawa
o Others: (pls. specify) o Maluwag/ Maginhawa
o Kahit papaano ay maginhawa
General cleanliness and hygiene of the venue: o Hindi maginhawa
o Excellent o Iba pa: (pkitukuy)
o Very Good
o Good Pangkalahatang kalinisan ng lugar:
o Average o Napakalinis
o Poor o Masmalinis
o Malinis
o Hindi masyadong malinis
Staff pleasantness and accommodation:
o Hindi malinis
o Excellent
o Very Good Serbisyo ng aming mga empleyado:
o Good o Napakahusay
o Average o Masmahusay
o Poor o Mahusay
o Hindi masyadong mahusay
Time you had to wait at your appointment: o Hindi mahusay
o 0-5 minutes
o 5-10 minutes Oras na kayo ay naghintay:
o 10-15 minutes o 0-5 minuto
o 15-20 minutes o 5-10 minuto
o 20 minutes or more o 10-15 minuto
o 15-20 minuto
The level of dental treatment you received: o 20 minuto o higit pa
o Excellent
o Very Good Ang antas na paggamot na iyong natanggap:
o Good o Napakahusay
o Average o Masmahusay
o Mahusay
o Poor
o Hindi masyado mahusay
o Hindi mahusay
Overall quality of service you received:
o Excellent
Kabuuang kalidad ng serbisyo natanggap:
o Very Good o Napakahusay
o Good o Masmahusay
o Average o Mahusay
o Poor o Hindi masyado mahusay
o Hindi mahusay
Additional Comments or Suggestions:
Karagdagang mga komento o mungkahi:

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66