De La Salle University - Manila

Ramon V. Del Rosario

College of Business

ACCCOB2 PORTFOLIO
REFLECTION PAPER 2
In partial fulfillment of the course
requirements in ACCCOB2 - XC1
Term 1, A.Y. 2022-2023

Submitted by:
Camero, Ayanna Beyonce C.
Malit, Francis Iverson
 DMCI HOMES

On March 8, 1995, DMCI Holdings, Incorporation, and Subsidiaries was formed as a holding
company to consolidate the Consunji family's construction business, construction component
companies, and related interests. The Company was listed on the Philippine Stock Exchange on
December 18, 1995. The business expanded quickly after incorporation to include five
significant subsidiaries, including D.M. Consunji, Inc., DMCI Project Developers, Inc., Semirara
Mining and Power Corporation, DMCI Power Corporation, and DMCI Mining Corporation among
the companies involved. DMCI and its affiliates work in manufacturing, general construction,
nickel and coal mining, power generation, real estate development, and water concessions.
Indirectly, the company owns a 25% stake in Maynilad Water Services, Inc. through Maynilad
Water Holding Company, Inc., a partnership with Metro Pacific Investments Corporation and
Marubeni Philippines Corporation.

As a public corporation, it is expected that the company's financial statements adhere to the
Generally Accepted Accounting Principles (GAAP) and Philippine Financial Reporting Standards
(PFRS). External users rely heavily on financial information, so it must be accurate. This
information is particularly used by creditors, investors, and shareholders to make investment
decisions, such as buying, selling, or holding. Another external user is the Bureau of Internal
Revenue (BIR) which uses this information to determine how much tax DMCI should pay.

Liabilities are the present obligations from a company or business entity that requires them to
transfer an economic resource whether it is cash, goods, or other resources arising from their
responsibility in debt to another thing. As we can see on the first page of financial statements of
DMCI, the total non-current liabilities amount to 53,954,822 Pesos in 2021 whereas the number
of liabilities in 2020 amounted to 48,576,085 Pesos which shows an increase of current
liabilities by 5,378,737 Pesos for one year. Given that this was the increase of the current
liabilities, we know that this is what the company obligations to their creditors in one year, and
seeing an increase shows that the company may have taken in more obligations and more
purchases that made their current debt higher within the year.
The non-current liabilities increased by 3,108,108 pesos which showed a slight climb in the
company’s long-term debt to its creditors. The short term-debts of the company showed a large
decrease of 4,760,697 pesos from its 5,800,060 pesos debt in 2020 which also states that from
that year, the company only obtained short-term debts for their working capital requirements.
Liabilities for purchased land represent the company’s obligations for the acquisition of land for
their business purposes, we can see that the company recorded a decrease in purchased land
from 2,019,606 in 2020 to 1,571,369 pesos in 2021. Lastly, the accounts and other payables
showed an increase of 3,308,456 Pesos from 2020 to 2021.

In the company's Statement of Changes in Equity the Comprehensive Income, we can see the
acquired revenue and incurred expenses of the company and compare them to those of the
previous year. Based on the statement, we can see that as compared to the previous year, with
this, the company was also able to ultimately earn more than the previous year as presented in
their total comprehensive income (loss) for equity in the year 2021 which was 26,120,469 as
compared to 7,150,546 for the previous year. From 2020 to 2021, the company's balances have
been increasing. In 2020, total equity was Php 101,202,771, and in 2021 was Php 108,846,612.
Due to the retained earnings, total equity increased by PHP 7,643,8412021 from 2020 to 2021.
This is yet another indication that the firm is doing well in financial performance. The equity is
kept to generate unearned income, such as interest payments, dividends, or gains from changes
in the holding instrument's fair value. In contrast, stocks are a type of equity investment
because they are securities with a claim to a company's assets and earnings.