You are on page 1of 4

Brian Takata - Leader James Marquez-Lim John Paolo Losanes K- 31 GINEBRA SAN MIGUEL, INC.

Business Case

A corporation is a legal entity that is created under the laws of a state designed to establish the entity as a separate legal entity having its own privileges and liabilities distinct from those of its members. Its characteristics such as Separate legal entity, created by operation of law, have the right of succession, powers, attributes and properties authorized by law. Ownership divided into shares and management is vested in a Board of Directors. One of the many successful corporations in the Philippines is the Ginebra San Miguel, INC. San Miguel Corporation or known as SMC is a food, beverage and packaging company established in 1890 initially as a single-product brewery. Today, it offers a wide variety of product portfolio which includes beer, hard liquor, carbonated and non-carbonated non-alcoholic beverages, processed and packaged food products, meat, poultry, dairy products and a number of packaging products. It has over 100 facilities in the Philippines, Southeast Asia, and China. SMC is now known as the flagship bearer among the world's largest selling beers. Management is being oversees by the Board of Directors as part of a corporations characteristic. As of May 12, 2011 the Board of Directors are: Eduardo M. Cojuangco, Jr. who is the chairman, Ramon S. Ang, Roberto V. Ongpin, Gerardo C. Payumo, Leo S. Alvez, Bernard D. Marquez, Gabriel S. Claudio and the independent directors are: Carmelo Santiago and, Carlos Palanca III. The current president of this corporation is Bernard D. Marquez. This corporation issues preference and ordinary shares. Ordinary and

preference stocks; authorized=560,000,000 and outstanding shares= 320,223,426. Common Stock as of December 31, 2010 and 2009, the number of authorized common shares is 460 million. The holders of common shares with par value of P1 per share are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Parent Company. For the Year 2010 and 2009, the number of authorized preferred shares is 100 million. The holders of preferred shares, with par value of P1 per share, are entitled to participate and receive annual dividends of P1.50 per preferred share, which shall be cumulative and payable in arrears on December 31 of each year. There are 149,997 shares subscribed.

It is important that a Corporation maintain the value of their stocks. One such way is buying treasury shares. As of now SMC preferred treasury share is 20,650,700 and its ordinary treasury share is 55,549,391. The corporation uses cost method and each share is allotted to P100. According to the corporation, they have retained earnings P 1,300,000 are appropriated and P 6,754,141 are unappropriated or free. It totaled to 8,054,141,000.

On November 11, 2010, the BOD approved appropriations for the Parent

Companys capital expenditures, which include, among others, distillery replacement and maintenance projects and bottling plants building and equipment rehabilitation and maintenance. As of 2010, SMC declared cash dividend to its shareholders amounting to P476, 081, 00.00. They also have stock dividends distributable as of balance sheet date which amounts to P0.375/ per share and it will be distributed on late July 2011. SMC gained a net profit of P913, 854,000. They didnt use the format in school particularly the Statement of Changes in Stockholders Equity. The consolidated financial statements of the Group have been prepared on a historical cost basis of accounting, except for the following: derivative financial instruments are measured at fair value; and defined benefit asset is measured as the net total of the fair value of the plan assets, less unrecognized actuarial gains and the present value of the define benefit obligation.

In their notes to financial statements, they include their notes disclosed information about their corporate social responsibility namely, personnel expenses which includes employee benefits &retirement benefits, retirement plans, & corporate

special programs.

Ginebra Corporation strictly has good business earnings this year. As a conclusion, many investors & stockholders invest to the corporation for having a good foundation so to speak. The corporation has good income and is a good way of investing ones money.