Gerosanib, Arlien V. et. al. 4 0
A Five Year Financial Plan for Central Azucarera De Tarlac Inc. (CAT) / 6 6 Gerosa, Arlien V.; Diaz, Lawrence S.; De Asis, Kirsten Ann Q.; Gaza, Cherilou L.; Datu, Jefferson M.; De Vera, Arcelyn Joy D.; Estocado, Karen L.; Gonzales, Chelsea Marie Beatrice R.; Hortilano, Jesleach V. - - - 108 pp. 28 cm. - - - - - . - . - 0 . - . - 0 .
EXECUTIVE SUMMARY: Central Azucarera de Tarlac, Inc. is a large enterprise owned by Jose Conjuanco Jr. which is engaged in manufacturing and producing both raw and refined sugar, alcohol, liquid carbon dioxide and yeast. It is situated in the Central Luzon which is considered as the bulk of sugar consumption. It is also the major producer of raw and refined sugar in Luzon. It was incorporated in the Philippines and registered in the Philippine Stock Exchange on April 12, 1997. The company aims to provide sufficient supply of high quality sugarcane (raw material) through modern farm practices. However, Central Azucarera de Tarlac Inc. manifest inefficient liquidity management which made the company highly leveraged. Large parts of current liabilities are primarily contributed by customers deposit and interest payable and it has a low margin of safety to its creditors. Also, the company shows poor agricultural process because of the old fashioned way of the veteran planters. Furthermore, the company is inefficient in using some of their resources as shown on their poor current asset turnover. In order to help the company in solving its current problems, the proponents have come up with the following alternative courses of actions that will also help attain the goals and objectives. First, offering and selling by way of primary offer of Php 30,000,00 (@ Php 25.00 per share, Php 10.00 par), non-voting, non-participating and non-convertible peso dominated preferred stocks. This course of action will help the company to increase its margin of safety to its creditors and increase its stockholders equity. It will also help the company improve its balance sheet with equity capital without diluting the voting power of existing common stock and improve its equity ratio. Second, the debt to equity swaps. This course of action will help the company lessen its liabilities and will result to an increase in equity. Also, it will help the companies avoid an imminent or prospective insolvent liquidation caused by prolonged negative cash flows and/balance sheet solvency issues. It enables the company to trade and compete more effectively on the basis of a significantly reduced debt burden. Third, the proponents propose the interest swap as another alternative course of action. This course of action helps the company revise its debt conditions. It allows companies to tailor the principal, maturity, and payment frequency that suit their financing arrangement. This will be very beneficial to the company since it only involves minimal cash outlay. Fourth, obtaining long-term loan amounting to Php750,000.000. This alternative course of action will help the company increase its current ration. This will provide additional cash to available to the company that would be very useful to the operation. Fifth, investing in machinery with better quality and longer useful life. This will provide an increase in revenue to the company. Acquiring machineries with better quality will make the manufacturing process faster. Lastly, Strengthening Research and Development Department, the company will set new training programs and seminars that will build up their planters knowledge and experience that will boost the company's performance and sales. In this line, the company will implement new strategies that will reduce their expense but still gain profits.;Financial Plan (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2012.
5
5
2 = =
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/ 2
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A Five Year Financial Plan for Central Azucarera De Tarlac Inc. (CAT) / 6 6 Gerosa, Arlien V.; Diaz, Lawrence S.; De Asis, Kirsten Ann Q.; Gaza, Cherilou L.; Datu, Jefferson M.; De Vera, Arcelyn Joy D.; Estocado, Karen L.; Gonzales, Chelsea Marie Beatrice R.; Hortilano, Jesleach V. - - - 108 pp. 28 cm. - - - - - . - . - 0 . - . - 0 .
EXECUTIVE SUMMARY: Central Azucarera de Tarlac, Inc. is a large enterprise owned by Jose Conjuanco Jr. which is engaged in manufacturing and producing both raw and refined sugar, alcohol, liquid carbon dioxide and yeast. It is situated in the Central Luzon which is considered as the bulk of sugar consumption. It is also the major producer of raw and refined sugar in Luzon. It was incorporated in the Philippines and registered in the Philippine Stock Exchange on April 12, 1997. The company aims to provide sufficient supply of high quality sugarcane (raw material) through modern farm practices. However, Central Azucarera de Tarlac Inc. manifest inefficient liquidity management which made the company highly leveraged. Large parts of current liabilities are primarily contributed by customers deposit and interest payable and it has a low margin of safety to its creditors. Also, the company shows poor agricultural process because of the old fashioned way of the veteran planters. Furthermore, the company is inefficient in using some of their resources as shown on their poor current asset turnover. In order to help the company in solving its current problems, the proponents have come up with the following alternative courses of actions that will also help attain the goals and objectives. First, offering and selling by way of primary offer of Php 30,000,00 (@ Php 25.00 per share, Php 10.00 par), non-voting, non-participating and non-convertible peso dominated preferred stocks. This course of action will help the company to increase its margin of safety to its creditors and increase its stockholders equity. It will also help the company improve its balance sheet with equity capital without diluting the voting power of existing common stock and improve its equity ratio. Second, the debt to equity swaps. This course of action will help the company lessen its liabilities and will result to an increase in equity. Also, it will help the companies avoid an imminent or prospective insolvent liquidation caused by prolonged negative cash flows and/balance sheet solvency issues. It enables the company to trade and compete more effectively on the basis of a significantly reduced debt burden. Third, the proponents propose the interest swap as another alternative course of action. This course of action helps the company revise its debt conditions. It allows companies to tailor the principal, maturity, and payment frequency that suit their financing arrangement. This will be very beneficial to the company since it only involves minimal cash outlay. Fourth, obtaining long-term loan amounting to Php750,000.000. This alternative course of action will help the company increase its current ration. This will provide additional cash to available to the company that would be very useful to the operation. Fifth, investing in machinery with better quality and longer useful life. This will provide an increase in revenue to the company. Acquiring machineries with better quality will make the manufacturing process faster. Lastly, Strengthening Research and Development Department, the company will set new training programs and seminars that will build up their planters knowledge and experience that will boost the company's performance and sales. In this line, the company will implement new strategies that will reduce their expense but still gain profits.;Financial Plan (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2012.
5
5
2 = =
2
2 --0------
6 --0-- 2 --------
0 2 --
--20------
--------20--
--------20--
----2
/ 2
/ 2
/
/