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CENTRO ESCOLAR UNIVERSITY
Company's Full Name
9 Mendiola Street
San Miguel, Manila
Company's Address
8735-68-61 to 71
Telephone Number
May 31,2021
Fiscal Year Ending
(Month & Day)
SEC FORM 17 – A
Form Type
May 31, 2021
Period Ended Date
_
-------------------------------------------------(Secondary License Type and File Number)
cc: Philippine Stock Exchange
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SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-A
ANNUAL REPORT PURSUANT TO SECTION 17
OF THE SECURITIES REGULATION CODE
AND SECTION 141 OF THE CORPORATION CODE
1. For the fiscal year ended
May 31, 2021
2. SEC Identification Number
1093
3. BIR Tax Identification No.
000-531-126-000
4. Exact name of issuer as
CENTRO ESCOLAR UNIVERSITY
specified in its charter
5. Province, Country or other
jurisdiction of incorporation or organization
Philippines
6. Industry Classification Code
(SEC Use Only)
7. Address of Principal Office
9 Mendiola Street, San Miguel, Manila
1005
Postal Code
8. Issuer’s telephone number,
Including area code
(02) 8735-68-61
9. Former name, former address
and fiscal year, if changed since last report
Former fiscal year was April 1 to March 31
10. Securities registered pursuant to Section 8 and 12 of the SRC, or Section 4 and 8 of the RSA
Title of Each Class
Number of Shares of Common Stock Outstanding
and Amount of Debt Outstanding
Common Stock
372,414,400
11. Are any or all these securities listed on a stock exchange?
Yes
[
]
No
[
]
If yes, state the name of such stock exchange and classes of securities listed therein:
Philippine Stock Exchange
12. Check whether the issuer:
(a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1
thereunder of Section 11 of the RSA and RSA Rule 11(a)-1 thereunder and Sections 26 and
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141 of the Corporation Code of the Philippines during the preceding twelve (12) months (or
for such shorter period that the registrant was required to file such reports):
Yes
[
]
No
[ ]
(b) has been subject to such filing requirements for the past 90 days.
Yes
[
]
No
[ ]
13. State the aggregate market value of the voting stock held by non-affiliates of the registrant.
The aggregate market value shall be computed by reference to the price at which the stock
was sold, or the average bid and asked prices of such stock, as of a specified date within 60
days prior to the date of filing. If a determination as to whether a particular person or entity
is an affiliate cannot be made without involving unreasonable effort and expense, the
aggregate value of the common stock held by non-affiliates may be calculated on the basis
of assumptions reasonable under the circumstances, provided the assumptions are set forth
in this Form. (See definition of “affiliate” in “Annex B”).
Number of non-affiliate shares as of June 30, 2021
372,414,400
Closing price per share as of June 22, 2021
Market value as of June 30, 2020
6.60
2,457,935,040.00
(price/share x 372,414,400)
PART I - BUSINESS AND GENERAL INFORMATION
Item 1. Business
Description of Business
Business Development During the Past Three Fiscal Years (2018-2019; 2019-2020;
2020- 2021)
Centro Escolar University (CEU), an institution of higher learning established in
1907 by Librada Avelino and Carmen de Luna, is committed to the furtherance of its
founders' philosophy, Ciencia y Virtud (knowledge and virtue), and aims to cultivate the
mind, the spirit, and the body for service to God, country and the family. It has ranked
among the top ten institutions of higher education in the Philippines.
In pursuit of this philosophy, it seeks to educate students:
1. To develop wholesome values and attitudes;
2. To become intellectually, technologically, and globally proficient in
their chosen professions; and
3. To be involved in the promotion of nationalism.
CEU, a stock corporation, was first incorporated in 1932 to exist for 50 years, or
until 1982. On March 31, 1982 the corporate life was extended for another 12 years to last
until 1994. On March 31, 1994, the Articles of Incorporation was amended extending the
life of CEU for another 50 years.
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There was no bankruptcy, receivership or similar proceeding that happened to the
corporation.
Stock split was approved by SEC on March 31, 2000, effectively reducing the par
value from 100 to 1 per share. PSE correspondingly adjusted the par value on August
3, 2000.
School Year 2018-2019
Student Enrolment
The University had an enrollment of 12,270 for the first semester and 11,344 for the
second semester of school year 2018-2019. The total enrolment for the three campuses
for both the first and second semesters decreased by 5.10% and 5.83%, respectively
compared to that of SY 2017-2018. The school year 2018-2019 was the start of the regular
offering of first year after the K-12 transition.
Foreign Student Enrolment
Foreign student enrolment for SY 2018-2019 was 239 and 214 for the first and
second semesters, respectively. A decrease of 35.41% and 32.06% for the first and
second semesters, respectively, was noted compared to that of the previous school year.
Dentistry and Graduate School are the programs where most of the foreign students
enrolled.
Performance in Board Examination
Through the years, CEU graduates have remarkably excelled in the various
professional licensure examinations given by the Professional Regulation Commission
(PRC).
With an outstanding overall passing rate of 87.23%, CEU was the top 3 performing
school for the July 2018 Optometry Licensure Examination. CEU Optometry graduates
also nailed the top places in the July 2018 board examination as they captured the 2nd, 5th,
and 7th places.
CEU’s Pharmacy program was listed in the top performing schools with CEU
Malolos campus in rank 6 garnering a rating of 88.75%, Makati campus on the 7th spot with
87.95%, and Manila campus on the 8th place with 83.90%. A Pharmacy graduate from
CEU Manila seized 2nd place in the August 2018 board examination.
On March 2019 Medical Technology Licensure Examinations, CEU Manila was the
top 7 performing school having 92.31% passing rate while CEU Makati was the top 10 with
80.88% passing percentage.
CEU Malolos Dentistry program has had a 100 percent passing rate in the board
examination both for written and practical for the past four years. CEU-Manila School of
Dentistry dominated in the May-June 2018 board examination as it produced the top three
placers while CEU Malolos graduate got the 6th placer. The university continued its
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superiority as CEU Manila graduate obtained the 7th placer while CEU Makati grabbed the
9th placer in December 2018 board examination.
Other programs of CEU that produced topnotch graduates are CEU Makati Nursing
program which took the 6th and the 8th places in the board examination, CEU Manila
Guidance and Counseling graduate school at 6th place in the Guidance Counseling
Licensure Examination, and Bachelor of Elementary Education Specialization Special
Education graduate at 9th place in the Licensure Examination for Teachers-Elementary
Level.
The first timer examinees in almost all the programs in the three campus obtained a
higher passing rate than the national passing percentage.
Accreditation and Recognition
CEU prides itself in its continuous efforts to improve its academic programs that
have resulted in its reaching another milestone in accreditation history. The CEU Manila
graduate school programs Master of Science, Master of Arts, and Master of Business
Administration were added to the list of highest level of accreditation, Level IV from the
Philippine Association of Colleges and Universities Commission on Accreditation
(PACUCOA) as certified by the Federation of Accrediting Association of the Philippines
(FAAP).
On the other hand, six (6) undergraduate programs of CEU Manila were
reaccredited Level IV by the same accrediting agency: Nutrition and Dietetics, Dentistry,
Bachelor of Secondary Education and the Elementary Education, Liberal Arts, and Medical
Technology. Computer Science and Computer Engineering currently received Level I
accreditation. Meanwhile, Biology and Psychology programs are awaiting for the results of
their 2nd reaccredited Level IV and Hotel and Restaurant Management and Tourism
Management programs for their Level II visit last September 24-25, 2018
CEU Makati’s Hotel and Restaurant Management, Tourism Management, Business
Administration, and Computer Science were reaccredited Level II by PACUCOA while
Information Technology and Dentistry received Level I accreditation.
Meanwhile, CEU Malolos Bachelor of Elementary Education program was granted
Level I accreditation.
The university successfully earned the ASEAN University Network-Quality
Assurance (AUN-QA) accreditation of Psychology program based on 15 AUN-QA criteria:
expected learning outcomes, program satisfaction, program structure and content,
teaching and learning process, student assessment, academic staff quality, support staff
quality, student quality, student advice and support, facilities and infrastructure,
stakeholders’ feedback, output, and stakeholders satisfaction.
This recognition serves as another testament to the University’s commitment to
quality and excellence.
International Linkages
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Determined to bring its academic programs up to international standards and to
remain competitive, Centro Escolar University continues to expand its internationalizations
thrusts.
For three consecutive years, the School of Science and Technology and the
Biological Sciences Department join efforts in sending graduating students for international
practicum. This school year 2018-2019, fourteen (14) students participated to complete the
third batch for the international practicum held at Walailak University, Nakhon Si
Thammarat,Thailand. Students were trained to engage in rigorous research works from
sample collection, processing data gathering and analysis up to the writing of report. Their
studies focus on waterborne protozoans and soil transmitted helminthes. Students were
trained to do systematic review specifically in the area of Biology.
The CEU Manila and Makati School of Nursing sent five (5) graduating students in
the 4th International Student Exchange Program at Sekolah Tinggi Ilmu Kasehatan
Baiturrahim, Jambi, Indonesia last January 9 to 23, 2019. The program aimed to broaden
the students’ experience in giving nursing care in a community and hospital setting in
another country like Indonesia and apply the concept of transcultural nursing. Furthermore,
the program provided them excellent opportunity to gain new insights on the educational
and health care delivery system of Indonesia.
Two students from CEU-Manila joined the Daegu’s Health College’s Global Student
Leadership Program 2018. The activity provided students the opportunity to undertake a
challenging extra-curricular program. The leadership program centered on the theme
“Meeting the Global Challenge: Creativity, Profession, and Humanity,” that targeted
students who were interested to see their personal growth in inclusive environments and
how student leadership could impact global issues and global change.
Together with two of the most recognized hospitality management establishments
in Vietnam, the School of Nutrition and Hospitality Management of Centro Escolar
University keeps up on committing with the standards for global competitiveness. Under
the CHED Student Internship Abroad Program (SIAP), the School of NHM remains to be
partner with Phu Hai Resort, a four-star hotel in Phan Thiet City and Paradise Suites,
Hotels and Cruises and one of the top hospitality management companies in Halong Bay.
With the support and approval of dean of the School of NHM and the University President
and through the compassion and hard work of the Program Head of Tourism Management,
the program provides a wide-range and world-class training that equips students with skills
and knowledge as future professionals in the field of hospitality management. SIAP lasts
for at least four to five months training for Tourism and HRM students. Furthermore, this
international tie-up has given chances to student participants and alumni of CEU to work
and be part of these two companies.
Quality Assurance
To leverage the future of the University as the “University of first choice” and to
strengthen its pursuit of its vision and mission, the CEU Management Council conducts a
yearly review and strategic planning. The activity also serves as a venue for strengthening
the working relationship among the different units of the University.
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The annual Management Review for the SY 2017-2018 was held on April 24-26,
2018 and aimed to firm up CEU’s strategic directions.. A Midyear Management Review
was conducted on December 5, 2018 to review and improve the organizational
performance and to apprise opportunities and threats for the next strategic planning. A
periodic monitoring of the annual operation plan of the different units was conducted online
by the Planning and Monitoring Office. A stakeholders’ needs, and SWOT analysis
workshop was held on January 30, 2019. It was followed by the risk assessment on
February 14-15, 2019 and a pre-strategic planning on March 18, 2019.
An Internal Quality Audit orientation and re-orientation was held on August 14-16,
2018 to update and calibrate internal auditors’ knowledge, skills and attitude. The same
activity was also conducted for the Data and Document Custodian on September 4, 5, and
17 for Makati, Malolos, and Manila respectively. The orientation for the 7S evaluators was
conducted on September 17, 19, and 21 for Manila, Malolos, and Makati campuses
respectively.
To further improve service to various clientele, Customer Feedback Form (CFF)
was incorporated in the visitor’s form to obtain feedback from external clients. Collection
and submission of the CFF to the Planning and Monitoring Office is done periodically. On
the other hand, the CEU Internal Customer Survey Instrument and Student Personnel
Services (SPS) Evaluation from internal clients/students are done annually.
SGS surveillance visit was conducted on May 2-3, 2019 and the auditors
recommended that Centro Escolar University be certified with 9001:2015.
Faculty Achievements
Mr. Ian Gabriel Torres Corpuz, a Conservatory of Music alumnus-faculty, is one of the
55 artists who were honored by the National Commission for Culture and the Arts (NCAA)
at the Diamond Hotel on February 14, 2019. It was based on his winning the first prize
award in the Busan Choral Composition held in South Korea in 2018.
Dr. Erna V. Yabut, Vice-President for Research and Evaluation, is the current
president of the Philippine Society for Educational Research and Evaluation, Inc. (PSERE),
the chair of the University Belt Consortium Research and Extension Linkages, and the
secretary of the National Research Council of the Philippines Research Foundation, Inc.
Dr. Carlito B. Olaer, Vice President for Student Affairs, was elected President of
Philippine Association of Practitioners of Student Affairs and Services (PAPSAS). Dr.
Maria Corazon L. Andoy, head of the Student Affairs of CEU Makati is the elected
President of PAPSAS-NCR Chapter while Mr. Dante Gabano, Asst. to the VP for Student
Affairs (Campus Organization) is the Business Manager.
Dr. Julieta Z. Dungca, Dean of the School of Science and Technology, is the
elected secretary of the Philippines Society of Research (PSERE), Inc. and the treasurer of
the Philippine Society of Parasitology (PSP), Inc. Dr. Carmencita Salonga, head of the
Guidance and Counseling Department is a board of director of Psychological Association
of the Philippines. Dr. Maria Dolores Delacruz, head of the Planning and Monitoring
Department is the treasurer of the Philippine Society for Quality Assurance (PSQ). Dr.
Maricar Ching, the Asst. Dean of the Graduate School, is the secretary of both the Biology
Teachers Association of the Philippines and the National Research Council of the
Philippines (NRCP) Division 3. Dr. Ching is also a board member of the Department of
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Science and Technology Philippine Council for Health Research and Development (DOSTPCHRD) Scholars Society. Ms. Aleli Lozano, head of the Mathematics and Physical
Sciences Department is the Asst. Treasurer of the Philippine Association of Chemistry
Teachers. Dr. Agnes Magnaye, a faculty from the Biological Sciences Dept. is a board
member of BIOTA Philippines.
Awarded by the Philippine Pharmacists Association (PPhA) and United
Laboratories, Inc. as Most Outstanding Pharmacist in Education was Dr. Cecilia D.
Santiago, dean of the School of Pharmacy. Dr. Santiago, together with Dr. Maria
Donnabelle U. Dean, CEU Makati Pharmacy program head are directors of Philippine
Association of Colleges of Pharmacy while Ms. Regina A. Jazul, CEU Malolos Pharmacy
program head is the elected P.R.O. and Dr. Olivia Limuaco, Vice President of CEU Makati
is one of the Council of Advisers.
Dr. Elena Borromeo, dean of the School of Optometry, is the Vice President of the
Philippine Cornea and Contact Lens Institute (PCCLI) while Dr. Gregeny Nivin Blanco is
the secretary. On the other hand, Dr. Maria Concepcion Anda and Dr. Fides Masanga are
presidents of the Quezon City and Pasig Chapters Integrated Philippine Association of
Optometrist (IPAO).
Philippine Nursing Association’s COMELEC Chair is the dean of CEU School of
Nursing, Dr. Elvira Urgel; her faculty, Mr. Sonny Pura and Dr. Sofia Magdalena Robles are
COMELEX Commissioners and another faculty, Dr. Pearl Ed G. Cuevas, is the Board of
Director of Zone 1 Chapter. The other faculty members of CEU School of Nursing hold
positions in Association of Diabetes Nurse Educators of the Philippines (ADNEP). Ms.
Anjanette S. De Leon is the secretary and Chair of Education Committee, Mrs. May P.
Mendinueto is the treasurer and Chair of the Research Committee, and Mrs. Joylyn L.
Mejilla is the immediate past president and Chair of the Ethics Committee
Dr. Maria Rita D. Lucas, dean of the School of Education, Liberal Arts, Music and
Social Work, is the asst. secretary of the Philippine Association for Teachers and
Educators while Dr. Milagros Borabo, head of the PACE, is the executive director. Dr.
Lolita D. Pablo, head of the Community Outreach Department is the ex-officio of the
National Association for Social Work Education Incorporated, accreditor of PAASCU and a
member of the CHED technical committee for Social Work program. Prof. Ricky Rosales,
program head of the Mass Communication is a board member of the Philippine
Association for Media and Information Literacy. Prof. Angelito E. Ayran Jr., Music program
head, is the NCR coordinator of the Philippine Choral Directors Association. Dr. Arlene
Salve-Opina, head of the Languages Department is the President and one of the founding
members of the Global Educators' Organization. Mr. Dante Gabano is the assistant
treasurer of the Speech Communication Organization of the Philippines, Inc. (SCOP) while
Dr. Christopher Jay Cortado is one of the board of directors.
Dr. Pearly P. Lim, dean of the School of Dentistry is a councilor of the International
Association for Dental Research. Some School of Dentistry faculty members have
positions in professional organizations. Dr. Stephen Almonte is elected president of the
Philippine Dental Association while Dr. Joann Joven and Dr. Marie France Fullante are
vice president and asst. secretary of the Philippine Prosthodontic Society, respectively.
Dr. Rosemarie So, dean of the School of Accountancy and Management, is a board
member of the Philippine Association of Collegiate Schools of Business (PACSB) and a
fellow in Business Education. Prof. Zenaida S. Diola, a faculty of the same school a board
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member of the International Cooperative Alliance-Asia Pacific. Dr. Rowel Antonio is the
Chair of the Entrepreneurship of Wadhwani Foundation.
Student Achievements
A senior BS Medical Technology student from CEU Manila was chosen to
represent the Philippines in the 9th University Scholars Leadership (#USLS2018) at the
united Nations, Bangkok, Thailand. There were 1,057 delegates from 87 different
countries. The symposium was creatively planned to help the student leaders discover
their hidden potentials and actively engaged them in learning experiences beyond the
conference rooms. The event let them acquire robust confidence, goal setting capabilities,
self-reliance and independence. It allowed them to sharpen their cutting edge as the next
generation of 21st century leaders.
Centro Escolar University music student bagged the 3rd prize for the National LevelGuitar Category in the recent National Music Competitions for Young Artist (NAMCYA) at
the Cultural Center of the Philippines on November 2018,
Education students joined and won in three competitions, EducGrid, Siklabanng
Talino, and EduQuiz. Two BSE English major students and a BSE major in Biological
Science student were hailed champions in the Inter-University Competition EducGrid at
National Teachers’ College on October 19, 2018. They won 2nd runner-up in the group
category and 1st runner-up in the individual category.
The entry of the students from the Communication and Media Program of School of
Education, Liberal Arts, Music and Social Work “Balita” made it as one of the top eight out
of the 123 entries in the student short film category. “Balita” is the first ever short-film entry
of the Centro Escolar University in the Metro Manila Film Festival (MMFF). The chosen top
8 short films were shown in cinemas together with the other full-length official entries
during the festival period from December 25, 2018 to January 7, 2019. The MMFF Student
Short Film Competition which started in 2016 aims at encouraging students to harness
their creativity and talents in storytelling through filmmaking. The short film entry of CEU
students also received the Guild of Educators, Mentors and Students (GEMS) “Special
Award” category for its concept. They were awarded as Best Students’ Short Film for
Tertiary Level.
After winning in the Global Clinical Case Contest Country Level for 2018-2019 on
February 13, 2019, Centro Escolar University School of Dentistry’s junior clinician
represented the country in the Asia Regional Clinical Case contest last April 2019 in Hong
Kong. Dentsply Sirona Global Clinical Case Contest is a worldwide contest for dental
students that features esthetic case studies by documenting a patient case with
photographs using Ceram X restorative materials. Ms. Santiago of the School of Dentistry,
Manila represented the Philippines in the Asia Regional Clinical Case contest
after winning 1st place in the Dentsply Philippines Ceram X case contest held last February
2019 at Dentsply Philippines.
In the Asia Regional Clinical Case contest last, Ms. Cenry Santiago, won first place in the
Dentsply Sirona Global Clinical Case Contest 2018-2019 Asia Regional Final held April 18,
2019 at Prince Philip Dental Hospital, The University of Hongkong. Five countries
participated in this regional GCCC 2018/2019. Ms. Cenry will represent Asia in the global
competition to be held in Constance, Germany in June 2019.
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Another Dentistry student of CEU Manila won in the 3M University Direct Esthetic
Restoration Competition held last March 27, 2019. He will represent the Philippines in the
South East Asia Region Competition in Malaysia in July 2019. A group of students bagged
the 3rd place in the Dentsply Sirona Regional Competition held on July 2018.
CEU Scorpions bagged the championship in the MNCAA for three straight years.
True to this season’s theme, “Play Bold with a Heart of Gold,” Centro Escolar
University Lady Scorpions once again ruled the 49th Women’s National Collegiate Athletic
Association (WNCAA) League with three championship titles for Senior’s Division in
basketball, volleyball and hip hop dance competitions.
The CEU Basketball Team aced their 8th straight win with a CEU Basketball player as the
Final’s Most Valuable Player and another player as the Season’s MVP.
The futsal team also bagged the 3rd place. Pumped up with their fierce yet graceful dance
routines, the CEU Streetsquad also claimed the WNCAA’s first- ever hip hop dance
competition crown.
With great pride and honor, the squad bagged three major awards in the recent 12th
Cheerleading Asia in International Open Competition in Takasaki Arena, Japan. Proudly
representing the Philippines, the CEU Pep Squad won the Championship title and 1st
Runner-up for the Group Students Co-Ed, and 2nd Runner-up for Team Cheer
International. Five cheers for the CEU pep Squad for winning the championship on the 49th
Season of the Women’s National Collegiate Athletic Association (WNCAA). To date this is
the squad’s 5-peat championship.
Student Enrolment
The University had an enrolment of 12,290 for the first semester and 11,483
for the second semester of school year 2019-2020. The total enrolment for the
three campuses for the first semester increased by 0.12% while it decreased by
1.83% for the second semester compared to that of SY 2018-2019. The school year
2019-2020 was the second year of the regular offering of first year after the K-12
transition.
Foreign Student Enrolment
Foreign student enrolment for SY 2019-2020 was 204 and 194 for the first
and second semesters, respectively. A decrease of 15% and 9.77% for the first and
second semesters, respectively, was noted compared to that of the previous school
year. Dentistry is the program where most of the foreign students enrolled.
Performance in Board Examination
Making excellence as its culture, CEU has proven once again its commitment to
provide world-class quality education as its graduates garnered top spots in
different licensure examinations conducted by the Professional Regulation
Commission (PRC). Optometry graduates took the top 5 spots in the licensure
examination (1st, 3rd, 6th, 7th and 9th ), CEU-Manila Pharmacy graduates
snatched the 8th and the 9th places, and CEU – Makati Dentistry graduate placed
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10th of Dentistry Licensure
Examinations.
Examination for
December
2019 Licensure
CEU Optometry program was awarded 1st Rank in the Top Performing
School in the Licensure Examination for Optometrists having a passing percentage
of 90.91%. Nutrition and Dietetics program obtained a 92.19% passing percentage
giving them Top 4 Rank in the Licensure Examination for Nutritionists and Dietitian.
Pharmacy Manila and Makati were awarded 7th and 9th Top Performing School
respectively with 50 or more examinees having a passing percentage of 86.48%
and 86.09% passing percentage.
The passing percentage of CEU graduates was higher than the national
passing percentage in almost all licensure examinations taken by the graduates in
the previous year.
Accreditation and Recognition
Commission on Higher Education granted Centro Escolar University
Campuses, Manila, Makati, and Malolos the Autonomous Status along with the
other private higher education institutions (PHEIs) in the Philippines as listed in the
CHED Memorandum Order No. 12, Series of 2019, last October, 2019. The
Commission on Higher Education issued CHED memorandum Order (CMO) No.
46, series of 2012, “The Policy- Standard to Enhance Quality Assurance (QA) in
Philippine Higher Education through an Outcomes-based and Typology-based QA”,
primarily to help higher education institutions (HEIs) develop a culture quality.
Autonomous status or Autonomous HEI based on evaluation as defined by CHED
are HEIs that “demonstrate EXCELLENT program outcomes through HIGH
proportion of accredited programs, the presence of Centre of Excellence and/or,
Development, and/or international certification. In particular, they show evidence of
OUTSTANDING performance consistent with their horizontal type” (CHED, final
draft, pp1,2019).
The Autonomous status allows HEIs to launch new courses/programs in the
undergraduate and/or graduate levels including doctoral programs in areas of
expertise without securing a permit/authority but informing CHED of the programs
to be offered. Because of their autonomy, such HEIs will be free from CHED’s
monitoring and evaluation activities while complying with the submission of
requested data for CHED’s data gathering and updating of its management
information systems and projects. They also enjoy the privilege of increasing tuition
fees without securing a permit from CHED provided, however, that they fully
comply with the existing CHED policies, standards, and guidelines (PSGs) on
increases in tuition and other school fees, especially those pertaining to the
consultation process and other requirements. (CHED, CMO 19, pp2, 2016). This
another milestone proves the University’s undying endeavor to continue the
unwavering commitment to work for excellence in providing the best and finest
education to its students.
CEU’s adherence to its quality objectives and principles, as well as its
compliance to documentary requirements, urges the academic community to seek
opportunities for continuous improvement such as accreditation.
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CEU Manila BS Biology and BS Psychology were granted Level IV 2nd
Reaccredited Status while Hotel and Restaurant Management and Tourism
received their Level II 1st Reaccredited Status. Graduate School programs that
include Doctor of Philosophy in Pharmacy, Higher Education Management,
Mathematics Education, and Southeast Asian Studies, Doctor of Education in
Science Education, , Educational Management, and Curriculum and Supervision,
and Doctor of Public Administration all underwent PACUCOA Level I visit and are
waiting for the results.
CEU Makati Computer Science program was given Level II 1st
Reaccredited Status.
The Information Technology program of CEU Malolos underwent Level I
visit last and is waiting for the results.
The university engages itself for Institutional Sustainability Assessment
(ISA) this school year. CEU Manila and Makati campuses submitted their
documents for evaluation and were visited last November 13-15, 2020.
This recognition serves as another testament to the University’s
commitment to quality and excellence.
International Linkages
Centro Escolar University academic and non-teaching officers visited the University
of Wisconsin (UW) in Madison and University of Southern California (USC) to
benchmark on their career services centers, last May 28, 2019 and June 7, 2019
respectively. Both universities gave the CEU team a view of their Career Service
Center structures and operations where they maintain a central Career Services
Center. This system allows Colleges/Programs carry out independently or in
coordination with their main Career Services Center activities to enhance
preparations for particular jobs and workplaces. Through this kind of benchmarking
efforts, CEU representatives were able to explore and assess international
academic institutions’ career center structures and functions to improve and
strengthen the University’s existing career and placement structure and services.
Three students from CEU-Manila joined the Daegu’s Health College’s
Global Student Leadership Program 2019 conducted from August 11 to 20, 2019.
The activity provided students the opportunity to undertake a challenging extracurricular program. The leadership program which is centered on the theme
“Meeting the Global Challenge: Creativity, Profession, and Humanity” targeted
students who were interested to see their personal growth in inclusive
environments and how student leadership could impact global issues and global
change.
The Association of Universities of Asia and the Pacific with the Panyapiwat
Institute of Management organized a Global Leadership Program 2019 on August
25 to September 1, 2019 with the theme “Next Generation Leader in a Disruptive
World.” The program targets students who are interested to see their personal
growth in comprehensive surroundings and how student leadership can impact
global challenges and change. An Optometry student attended the program.
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Quality Assurance
To leverage the future of the University as the “University of first choice” and
to strengthen its pursuit of its vision and mission, the CEU Management Council
conducts a yearly review and strategic planning. The activity also serves as a
venue for strengthening the working relationship among the different units of the
University.
In preparation for the 2020 Strategic Plan, the Administrative Council together with
the Deans and selected academic managers conducted a pre-planning session to
review the University’s vision and mission in the context of the stakeholders’ needs,
SWOT and Risk Assessment previously identified in workshop sessions. This was
held on April 18, 2019 at the Manila Hotel.
The annual Management Review for the SY 2018-2019 was held on April
23-25, 2019 and aimed to firm up CEU’s responses to the demands of a fastchanging world and to the current challenges and Requirements. A Midyear
Management Review for SY 2019-2020 was conducted on March 4, 2020 to review
the organizational performance on Strategic Plan 2015-2019 and update CEU’s
organizational context. A post strategic planning session was conducted on July 2,
2019. A periodic monitoring of the annual operation plan of the different units was
conducted online by the Planning and Monitoring Office.
An Internal Quality Audit (IQA) orientation and re-orientation was conducted
on July 29, August 1, and August 2, 2019 in CEU Makati, Manila, and Malolos
respectively. The activity aimed at enhancing CEU’s Quality Management System
through an effective internal quality audit process delivered by competent and
committed auditors. The same activity was also conducted for the Data and
Document Custodian on September 4, 5, and 17 for Makati, Malolos, and Manila
respectively. The orientation for the 7S evaluators was conducted on September
17, 19, and 21 for Manila, Malolos, and Makati campuses respectively.
To further improve service to various clientele, Customer Feedback Form
(CFF) was incorporated in the visitor’s form to obtain feedback from external
clients. Collection and submission of the CFF to the Planning and Monitoring Office
is done periodically. On the other hand, the CEU Internal Customer Survey
Instrument and Student Personnel Services (SPS) Evaluation from internal
clients/students are done annually.
SGS surveillance visit was conducted on May 2-3, 2019 and the auditors
recommended that Centro Escolar University be certified with 9001:2015.
To recognize the quality service and exemplary efforts of both teaching and
non-teaching personnel, Centro Escolar University held its annual Quality Awards
Day last July 17, 2019 The event gives recognition to the deserving members of the
University from the three campuses; Manila, Makati, and Malolos as The Teacher
of the Year, Non-Teaching of the Year (Non-Supervisory and Supervisory
Category), Research of the Year, 7s Model Work and Student Areas, Best Internal
Quality Audit (IQA) Sub-Team, Best Quality Circle, and CEU STARS.
Faculty Achievements
13
Emil Q. Javier, a member of the Board of Directors of Centro Escolar University,
now joins the roster of our country’s National Scientists for his notable contributions
in the field of agricultural science.
Student Enrolment
The University had an enrolment of 12,290 for the first semester and 11,483
for the second semester of school year 2019-2020. The total enrolment for the
three campuses for the first semester increased by 0.12% while it decreased by
1.83% for the second semester compared to that of SY 2018-2019. The school year
2019-2020 was the second year of the regular offering of the first year after the K12 transition.
Foreign Student Enrolment
Foreign student enrollment for SY 2019-2020 was 204 and 194 for the first
and second semesters, respectively. A decrease of 15% and 9.77% for the first and
second semesters, respectively, was noted compared to that of the previous school
year. Dentistry is the program where most of the foreign students enrolled.
Performance in Board Examination
Making excellence as its culture, CEU has proven once again its commitment to
provide world-class quality education as its graduates garnered top spots in
different licensure examinations conducted by the Professional Regulation
Commission (PRC). Optometry graduates took the top 5 spots in the licensure
examination (1st, 3rd, 6th, 7th and 9th ), CEU-Manila Pharmacy graduates
snatched the 8th and the 9th places, and CEU – Makati Dentistry graduate placed
10th of Dentistry Licensure Examination for December 2019 Licensure
Examinations.
The CEU Optometry program was awarded 1st Rank in the Top Performing
School in the Licensure Examination for Optometrists having a passing percentage
of 90.91%. Nutrition and Dietetics program obtained a 92.19% passing percentage
giving them Top 4 Rank in the Licensure Examination for Nutritionists and Dietitian.
Pharmacy Manila and Makati were awarded 7th and 9th Top Performing School
respectively with 50 or more examinees having a passing percentage of 86.48%
and 86.09% passing percentage.
The passing percentage of CEU graduates was higher than the national
passing percentage in almost all licensure examinations taken by the graduates in
the previous year.
Accreditation and Recognition
Commission on Higher Education granted Centro Escolar University Campuses,
Manila, Makati, and Malolos the Autonomous Status along with the other private
higher education institutions (PHEIs) in the Philippines as listed in the CHED
Memorandum Order No. 12, Series of 2019, last October, 2019. The Commission
on Higher Education issued CHED memorandum Order (CMO) No. 46, series of
14
2012, “The Policy- Standard to Enhance Quality Assurance (QA) in Philippine
Higher Education through an Outcomes-based and Typology-based QA”, primarily
to help higher education institutions (HEIs) develop a culture quality. Autonomous
status or Autonomous HEI based on evaluation as defined by CHED are HEIs that
“demonstrate EXCELLENT program outcomes through a HIGH proportion of
accredited programs, the presence of Centre of Excellence and/or, Development,
and/or international certification. In particular, they show evidence of
OUTSTANDING performance consistent with their horizontal type” (CHED, final
draft, pp1,2019).
The Autonomous status allows HEIs to launch new courses/programs in the
undergraduate and/or graduate levels including doctoral programs in areas of
expertise without securing a permit/authority but informing CHED of the programs
to be offered. Because of their autonomy, such HEIs will be free from CHED’s
monitoring and evaluation activities while complying with the submission of
requested data for CHED’s data gathering and updating of its management
information systems and projects. They also enjoy the privilege of increasing tuition
fees without securing a permit from CHED provided, however, that they fully
comply with the existing CHED policies, standards, and guidelines (PSGs) on
increases in tuition and other school fees, especially those pertaining to the
consultation process and other requirements. (CHED, CMO 19, pp2, 2016). This
another milestone proves the University’s undying endeavor to continue the
unwavering commitment to work for excellence in providing the best and finest
education to its students.
CEU’s adherence to its quality objectives and principles, as well as its
compliance to documentary requirements, urges the academic community to seek
opportunities for continuous improvement such as accreditation.
CEU Manila BS Biology and BS Psychology were granted Level IV 2nd
Reaccredited Status while Hotel and Restaurant Management and Tourism
received their Level II 1st Reaccredited Status. Graduate School programs that
include Doctor of Philosophy in Pharmacy, Higher Education Management,
Mathematics Education, and Southeast Asian Studies, Doctor of Education in
Science Education, , Educational Management, and Curriculum and Supervision,
and Doctor of Public Administration all underwent PACUCOA Level I visit and are
waiting for the results.
CEU Makati Computer Science program was given Level II 1st
Reaccredited Status.
The Information Technology program of CEU Malolos underwent Level I
visit last and is waiting for the results.
The university engages itself for Institutional Sustainability Assessment
(ISA) this school year. CEU Manila and Makati campuses submitted their
documents for evaluation and were visited last November 13-15, 2020.
This recognition serves as another testament to the University’s
commitment to quality and excellence.
International Linkages
15
Centro Escolar University academic and non-teaching officers visited the
University of Wisconsin (UW) in Madison and University of Southern California
(USC) to benchmark on their career services centers, last May 28, 2019 and June
7, 2019 respectively. Both universities gave the CEU team a view of their Career
Service Center structures and operations where they maintain a central Career
Services Center. This system allows Colleges/Programs carry out independently or
in coordination with their main Career Services Center activities to enhance
preparations for particular jobs and workplaces. Through this kind of benchmarking
efforts, CEU representatives were able to explore and assess international
academic institutions’ career center structures and functions to improve and
strengthen the University’s existing career and placement structure and services.
Three students from CEU-Manila joined the Daegu’s Health College’s
Global Student Leadership Program 2019 conducted from August 11 to 20, 2019.
The activity provided students the opportunity to undertake a challenging extracurricular program. The leadership program which is centered on the theme
“Meeting the Global Challenge: Creativity, Profession, and Humanity” targeted
students who were interested to see their personal growth in inclusive
environments and how student leadership could impact global issues and global
change.
Association of Universities of Asia and the Pacific with the Panyapiwat
Institute of Management organized a Global Leadership Program 2019 on August
25 to September 1, 2019 with the theme “Next Generation Leader in a Disruptive
World.” The program targets students who are interested to see their personal
growth in comprehensive surroundings and how student leadership can impact
global challenges and change. An Optometry student attended the program.
Quality Assurance
To leverage the future of the University as the “University of first choice” and
to strengthen its pursuit of its vision and mission, the CEU Management Council
conducts a yearly review and strategic planning. The activity also serves as a
venue for strengthening the working relationship among the different units of the
University.
In preparation for 2020 Strategic Plan, the Administrative Council together with
the Deans and selected academic managers conducted a pre-planning session to
review the University’s vision and mission in the context of the stakeholders’ needs,
SWOT and Risk Assessment previously identified in workshop sessions. This was
held in April 18, 2019 at the Manila Hotel.
The annual Management Review for the SY 2018-2019 was held on April
23-25, 2019 and aimed to firm up CEU’s responses to the demands of a fastchanging world and to the current challenges and Requirements. A Midyear
Management Review for SY 2019-2020 was conducted on March 4, 2020 to review
the organizational performance on Strategic Plan 2015-2019 and update CEU’s
organizational context. A post strategic planning session was conducted on July 2,
2019. A periodic monitoring of the annual operation plan of the different units was
conducted online by the Planning and Monitoring Office.
16
An Internal Quality Audit (IQA) orientation and re-orientation was conducted
on July 29, August 1, and August 2, 2019 in CEU Makati, Manila, and Malolos
respectively. The activity aimed at enhancing CEU’s Quality Management System
through an effective internal quality audit process delivered by competent and
committed auditors. The same activity was also conducted for the Data and
Document Custodian on September 4, 5, and 17 for Makati, Malolos, and Manila
respectively. The orientation for the 7S evaluators was conducted on September
17, 19, and 21 for Manila, Malolos, and Makati campuses respectively.
To further improve service to various clientele, Customer Feedback Form
(CFF) was incorporated in the visitor’s form to obtain feedback from external
clients. Collection and submission of the CFF to the Planning and Monitoring Office
is done periodically. On the other hand, the CEU Internal Customer Survey
Instrument and Student Personnel Services (SPS) Evaluation from internal
clients/students are done annually.
SGS surveillance visit was conducted on May 2-3, 2019 and the auditors
recommended that Centro Escolar University be certified with 9001:2015.
To recognize the quality service and exemplary efforts of both teaching and
non-teaching personnel, Centro Escolar University held its annual Quality Awards
Day last July 17, 2019 The event gives recognition to the deserving members of the
University from the three campuses; Manila, Makati, and Malolos as The Teacher
of the Year, Non-Teaching of the Year (Non-Supervisory and Supervisory
Category), Research of the Year, 7s Model Work and Student Areas, Best Internal
Quality Audit (IQA) Sub-Team, Best Quality Circle, and CEU STARS.
Faculty Achievements
Emil Q. Javier, a member of Board of Directors of Centro Escolar University,
now joins the roster of our country’s National Scientists for his notable contributions
in the field of agricultural science.
In an awards ceremony at the Dusit Thai Hotel last June 7, 2019, the Vice
President and Dean of Studies of Centro Escolar University Malolos, Dr. Maria
Flordeliza Anastacio; the Dean of School of Education, Liberal Arts, Music and
Social Work, Dr. Maria Rita Lucas; and the Dean of School of Optometry, Dr. Elena
Borromeo, were recognized as Philippines Education Leadership Awardees by the
World Education Congress. Philippines Education Leadership Award is presented
to individuals who are at the forefront of their respective institutions, fortifying it by
synergizing leadership, academics, and industry linkage with the ultimate goal of
rearing the world’s future leaders.
Dr. Erna V. Yabut, Vice-President for Research and Evaluation, is the
current president of the Philippine Society for Educational Research and
Evaluation, Inc. (PSERE), the chair of the University Belt Consortium Research and
Extension Linkages, and the secretary of the National Research Council of the
Philippines Research Foundation, Inc.
Dr. Carlito B. Olaer, Vice President for Student Affairs, was elected
President of Philippine Association of Practitioners of Student Affairs and Services
(PAPSAS). Dr. Maria Corazon L. Andoy, head of the Student Affairs of CEU Makati
17
is the elected President of PAPSAS-NCR Chapter while Mr. Dante Gabano, Asst.
to the VP for Student Affairs (Campus Organization) is the Business Manager.
Dr. Julieta Z. Dungca, Dean of the School of Science and Technology, is
the elected secretary of the Philippines Society of Research (PSERE), Inc. and the
treasurer of the Philippine Society of Parasitology (PSP), Inc. Dr. Carmencita
Salonga, head of the Guidance and Counseling Department is a board of director
of Psychological Association of the Philippines. Dr. Maria Dolores Delacruz, head
of the Planning and Monitoring Department is the treasurer of the Philippine Society
for Quality Assurance (PSQ). Dr. Maricar Ching, the Asst. Dean of the Graduate
School, is the secretary of both the Biology Teachers Association (BIOTA) of the
Philippines and the National Research Council of the Philippines (NRCP) Division
3. Dr. Ching is also a board member of the Department of Science and Technology
Philippine Council for Health Research and Development (DOST-PCHRD)
Scholars Society. Ms. Aleli Lozano, head of the Physical Sciences and Math
Department is the Asst. Treasurer of the Philippine Association of Chemistry
Teachers. Dr. Agnes Magnaye, a faculty from the Biological Sciences Dept. is a
board member of BIOTA Philippines.
The Vice President for CEU-Makati has been awarded the Association of
Colleges of Pharmacy (PACOP) Lifetime Achievement. Elected officers in the
Philippine Association of Colleges of Pharmacy (PACOP) are Dr. Maria Donnabelle
Dean as Assistant Secretary, Mrs. Regina Jazul as PRO, and Dr. Cecilia Santiago
as Board of Director. Dr. Dean and Mrs. Jazul are program heads of Makati and
Malolos while Dr. Santiago is the Dean of the School of Pharmacy.
Dr. Elena Borromeo, dean of the School of Optometry, is the Vice President of the
Philippine Cornea and Contact Lens Institute (PCCLI) while Dr. Roji. Soriano us the
Vice President of the Philippine Society of Public Health and Occupational
Optometry. On the other hand, Dr. Maria Concepcion Anda and Dr. Fides Masanga
are presidents of the Quezon City and Pasig Chapters Integrated Philippine
Association of Optometrist (IPAO).
Faculty members in the School of Nursing hold positions in Association of
Diabetes Nurse Educators of the Philippines (ADNEP). Ms. Anjanette S. De Leon is
the secretary and Chair of Education Committee, Mrs. May P. Mendinueto is the
treasurer and Chair of the Research Committee, and Mrs. Joylyn L. Mejilla is the
immediate past president and Chair of the Ethics Committee.
Dr. Maria Rita D. Lucas, Dean of the School of Education, Liberal Arts, Music
and Social Work, is the Asst. Secretary, while Dr. Milagros Borabo, Head of the
CEU PACE, is the Executive Director, of the Philippine Association for Teachers
and Educators (PAFTE). Dr. Lolita D. Pablo, Head of the Community Outreach
Department is the ex-officio of the National Association for Social Work Education
Incorporated (NASWEI), accreditor of Philippine Accrediting Association of
Schools, Colleges, and Universities (PAASCU) and a member of the Commission
on Higher Education (CHED) Technical Committee for Social Work program. Prof.
Ricky Rosales, Head of the Communication and Media Program is a Board
Member of the Philippine Association for Media and Information Literacy (PAMIL).
Prof. Angelito E. Ayran Jr., Music program Head, is the NCR coordinator of the
Philippine Choral Directors Association (PCDA). Dr. Arlene Salve-Opina, Head of
the Languages Department is the President and one of the founding members of
the Global Educators' Organization (GEO). Mr. Dante Gabano is the Assistant
18
Treasurer of the Speech Communication Organization of the Philippines, Inc.
(SCOP) .
Dr. Pearly P. Lim, Dean of the School of Dentistry is a councilor of the
International Association for Dental Research (IADR) - South East Asia Division.
Some School of Dentistry faculty members have positions in professional
organizations. Dr. Stephen Almonte is elected president of the Philippine Dental
Association (2019-2020) while Dr. Joann Joven is the Vice President of the
Philippine Prosthodontic Society. Dr. Marjorie Quieng is the Secretary of the Fil-Chi
Dental Foundation Inc. as well as the Editor in Chief of the Fi-Chi Dental
Foundation Inc News Letter.
Dr. Rosemarie So, Dean of the School of Accountancy and Management, is
a board member of the Philippine Association of Collegiate Schools of Business
(PACSB) and the Philippine Society for Educational Research and Evaluation, Inc.
(PSERE).. Dr. Rowel Antonio is a board member of the Entrepreneurship
Educators of the Philippines.
Student Achievements
Conquering international music scenes, Centro Escolar University Singers
Manila bagged four gold prizes in their recent participation in the 8th Bali
International Choir Festival in Indonesia. With 358 choir performances from ten
countries and 26 provinces of Indonesia, the CEU Singers Manila brought home
the Gold Prize in two categories, the Open Mixed and the Musica Sacra both in the
elimination and championship rounds. The choir was also one of the Grand Prix
finalists, the highest level category in the said music tilt.
After the CEU Singers Manila success in Bali, Indonesia, they flew to
Singapore for the 12th Orientale Concentus where they were also declared as Gold
Prize Winner for Open Mixed and Folklore categories.
Centro Escolar University (CEU) Scorpions clinched the first runner-up title
in the 2019 Philippine Basketball Association (PBA) D-League best-of-five final
series against the Cignal-Ateneo Blue Eagles on June 25, 2019 at the Ynares
Sports Complex.
Centro Escolar University School of Accountancy (SAM) students landed
1st Runner-Up in the recent Philippine Chamber of Commerce and IndustryBusiness Idea and Development Award (PCCI-BIDA) 2019, Technology Category
on September 27, 2019 at the Philippine Chamber of Commerce and Industry
Plaza.
A group of SAM students also participated in the 5th Annual Monsoon SIM
Enterprise Resource Management Competition (MERMC) 1st International Grand
Final Hong Kong 2019 held at the The Hong Kong Polytechnic University, Hong
Kong in August 10 & 11.
A student from the School of Accountancy and Management was accepted
to become a core participant among the 180 participants to the University Mobility
in Asia and the Pacific Collaborative Online International Learning (UMAP-COIL)
Program.
19
A Dentistry student represented Asia in the global competition held in
Constance, Germany in June 2019.
School Year 2019-2020
Student Enrolment
The University had an enrolment of 12,290 for the first semester and 11,483 for
the second semester of school year 2019-2020. The total enrolment for the three
campuses for the first semester increased by 0.12% while it decreased by 1.83% for the
second semester compared to that of SY 2018-2019. The school year 2019-2020 was
the second year of the regular offering of first year after the K-12 transition.
Foreign Student Enrolment
Foreign student enrollment for SY 2019-2020 was 204 and 194 for the first and
second semesters, respectively. A decrease of 15% and 9.77% for the first and second
semesters, respectively, was noted compared to that of the previous school year.
Dentistry is the program where most of the foreign students enrolled.
Performance in Board Examination
Making excellence as its culture, CEU has proven once again its commitment to
provide world-class quality education as its graduates garnered top spots in different
licensure examinations conducted by the Professional Regulation Commission (PRC).
Optometry graduates took the top 5 spots in the licensure examination (1st, 3rd, 6th, 7th
and 9th ), CEU-Manila Pharmacy graduates snatched the 8th and the 9th places, and
CEU – Makati Dentistry graduate placed 10th of Dentistry Licensure Examination for
December 2019 Licensure Examinations.
CEU Optometry program was awarded 1st Rank in the Top Performing School in
the Licensure Examination for Optometrists having a passing percentage of 90.91%.
Nutrition and Dietetics program obtained a 92.19% passing percentage giving them Top
4 Rank in the Licensure Examination for Nutritionists and Dietitian. Pharmacy Manila and
Makati were awarded 7th and 9th Top Performing School respectively with 50 or more
examinees having a passing percentage of 86.48% and 86.09% passing percentage.
The passing percentage of CEU graduates was higher than the national passing
percentage in almost all licensure examinations taken by the graduates in the previous
year.
Accreditation and Recognition
Commission on Higher Education granted Centro Escolar University Campuses,
Manila, Makati, and Malolos the Autonomous Status along with the other private higher
education institutions (PHEIs) in the Philippines as listed in the CHED Memorandum
20
Order No. 12, Series of 2019, last October, 2019. The Commission on Higher Education
issued
CHED
memorandum
Order
(CMO)
No.
21
46, series of 2012, “The Policy- Standard to Enhance Quality Assurance (QA) in
Philippine Higher Education through an Outcomes-based and Typology-based QA”,
primarily to help higher education institutions (HEIs) develop a culture quality.
Autonomous status or Autonomous HEI based on evaluation as defined by CHED are
HEIs that “demonstrate EXCELLENT program outcomes through HIGH proportion of
accredited programs, the presence of Centre of Excellence and/or, Development, and/or
international certification. In particular, they show evidence of OUTSTANDING
performance consistent with their horizontal type” (CHED, final draft, pp1,2019).
The Autonomous status allows HEIs to launch new courses/programs in the
undergraduate and/or graduate levels including doctoral programs in areas of expertise
without securing a permit/authority but informing CHED of the programs to be offered.
Because of their autonomy, such HEIs will be free from CHED’s monitoring and
evaluation activities while complying with the submission of requested data for CHED’s
data gathering and updating of its management information systems and projects. They
also enjoy the privilege of increasing tuition fees without securing a permit from CHED
provided, however, that they fully comply with the existing CHED policies, standards,
and guidelines (PSGs) on increases in tuition and other school fees, especially those
pertaining to the consultation process and other requirements. (CHED, CMO 19, pp2,
2016). This another milestone proves of the University’s undying endeavor to continue
the unwavering commitment to work for excellence in providing the best and finest
education to its students.
CEU’s adherence to its quality objectives and principles, as well as its
compliance to documentary requirements, urges the academic community to seek for
opportunities for continuous improvement such as accreditation.
CEU Manila BS Biology and BS Psychology were granted Level IV 2nd
Reaccredited Status while Hotel and Restaurant Management and Tourism received
their Level II 1st Reaccredited Status. Graduate School programs that include Doctor of
Philosophy in Pharmacy, Higher Education Management, Mathematics Education, and
Southeast Asian Studies, Doctor of Education in Science Education, , Educational
Management, and Curriculum and Supervision, and Doctor of Public Administration all
underwent PACUCOA Level I visit and are waiting for the results.
CEU Makati Computer Science program was given Level II 1st Reaccredited
Status.
The Information Technology program of CEU Malolos underwent Level I visit last
and is waiting for the results.
The university engages itself for Institutional Sustainability Assessment (ISA) this
school year. CEU Manila and Makati campuses submitted their documents for evaluation
and
were
visited
last
November
13-15,
2020.
22
This recognition serves as another testament to the University’s commitment to
quality and excellence.
International Linkages
Centro Escolar University academic and non-teaching officers visited the
University of Wisconsin (UW) in Madison and University of Southern California (USC) to
benchmark on their career services centers, last May 28, 2019 and June 7, 2019
respectively. Both universities gave the CEU team a view of their Career Service Center
structures and operations where they maintain a central Career Services Center. This
system allows Colleges/Programs carry out independently or in coordination with their
main Career Services Center activities to enhance preparations for particular jobs and
workplaces. Through this kind of benchmarking efforts, CEU representatives were able
to explore and assess international academic institutions’ career center structures and
functions to improve and strengthen the University’s existing career and placement
structure and services.
Three students from CEU-Manila joined the Daegu’s Health College’s Global
Student Leadership Program 2019 conducted from August 11 to 20, 2019. The activity
provided students the opportunity to undertake a challenging extra- curricular program.
The leadership program which is centered on the theme “Meeting the Global Challenge:
Creativity, Profession, and Humanity” targeted students who were interested to see their
personal growth in inclusive environments and how student leadership could impact
global issues and global change.
Association of Universities of Asia and the Pacific with the Panyapiwat Institute of
Management organized a Global Leadership Program 2019 on August 25 to September
1, 2019 with the theme “Next Generation Leader in a Disruptive World.” The program
targets students who are interested to see their personal growth in comprehensive
surroundings and how student leadership can impact global challenges and change. An
Optometry student attended the program.
Quality Assurance
To leverage the future of the University as the “University of first choice” and to
strengthen its pursuit of its vision and mission, the CEU Management Council conducts a
yearly review and strategic planning. The activity also serves as a venue for
strengthening the working relationship among the different units of the University.
In preparation for 2020 Strategic Plan, the Administrative Council together with
the Deans and selected academic managers conducted a pre-planning session to review
the
University’s
vision
and
mission
in
the
context
of
the
23
stakeholders’ needs, SWOT and Risk Assessment previously identified in workshop
sessions. This was held in April 18, 2019 at the Manila Hotel.
The annual Management Review for the SY 2018-2019 was held on April 23-25,
2019 and aimed to firm up CEU’s responses to the demands of a fast- changing world
and to the current challenges and Requirements. A Midyear Management Review for SY
2019-2020 was conducted on March 4, 2020 to review the organizational performance
on Strategic Plan 2015-2019 and update CEU’s organizational context. A post strategic
planning session was conducted on July 2, 2019. A periodic monitoring of the annual
operation plan of the different units was conducted online by the Planning and
Monitoring Office.
An Internal Quality Audit (IQA) orientation and re-orientation was conducted on
July 29, August 1, and August 2, 2019 in CEU Makati, Manila, and Malolos respectively.
The activity aimed at enhancing CEU’s Quality Management System through an
effective internal quality audit process delivered by competent and committed auditors.
The same activity was also conducted for the Data and Document Custodian on
September 4, 5, and 17 for Makati, Malolos, and Manila respectively. The orientation for
the 7S evaluators was conducted on September 17, 19, and 21 for Manila, Malolos, and
Makati campuses respectively.
To further improve service to various clientele, Customer Feedback Form (CFF)
was incorporated in the visitor’s form to obtain feedback from external clients. Collection
and submission of the CFF to the Planning and Monitoring Office is done periodically.
On the other hand, the CEU Internal Customer Survey Instrument and Student
Personnel Services (SPS) Evaluation from internal clients/students are done annually.
SGS surveillance visit was conducted on May 2-3, 2019 and the auditors
recommended that Centro Escolar University be certified with 9001:2015.
To recognize the quality service and exemplary efforts of both teaching and nonteaching personnel, Centro Escolar University held its annual Quality Awards Day last
July 17, 2019 The event gives recognition to the deserving members of the University
from the three campuses; Manila, Makati, and Malolos as The Teacher of the Year, NonTeaching of the Year (Non-Supervisory and Supervisory Category), Research of the
Year, 7s Model Work and Student Areas, Best Internal Quality Audit (IQA) Sub-Team,
Best Quality Circle, and CEU STARS.
Faculty Achievements
Emil Q. Javier, a member of Board of Directors of Centro Escolar University, now
joins the roster of our country’s National Scientists for his notable contributions in the
field
of
agricultural
science.
24
In an awards ceremony at the Dusit Thai Hotel last June 7, 2019, the Vice President
and Dean of Studies of Centro Escolar University Malolos, Dr. Maria Flordeliza
Anastacio; the Dean of School of Education, Liberal Arts, Music and Social Work, Dr.
Maria Rita Lucas; and the Dean of School of Optometry, Dr. Elena Borromeo, were
recognized as Philippines Education Leadership Awardees by the World Education
Congress. Philippines Education Leadership Award is presented to individuals who are
at the forefront of their respective institutions, fortifying it by synergizing leadership,
academics, and industry linkage with the ultimate goal of rearing the world’s future
leaders.
Dr. Erna V. Yabut, Vice-President for Research and Evaluation, is the current
president of the Philippine Society for Educational Research and Evaluation, Inc.
(PSERE), the chair of the University Belt Consortium Research and Extension Linkages,
and the secretary of the National Research Council of the Philippines Research
Foundation, Inc.
Dr. Carlito B. Olaer, Vice President for Student Affairs, was elected President of
Philippine Association of Practitioners of Student Affairs and Services (PAPSAS). Dr.
Maria Corazon L. Andoy, head of the Student Affairs of CEU Makati is the elected
President of PAPSAS-NCR Chapter while Mr. Dante Gabano, Asst. to the VP for
Student Affairs (Campus Organization) is the Business Manager.
Dr. Julieta Z. Dungca, Dean of the School of Science and Technology, is the
elected secretary of the Philippines Society of Research (PSERE), Inc. and the treasurer
of the Philippine Society of Parasitology (PSP), Inc. Dr. Carmencita Salonga, head of the
Guidance and Counseling Department is a board of director of Psychological Association
of the Philippines. Dr. Maria Dolores Delacruz, head of the Planning and Monitoring
Department is the treasurer of the Philippine Society for Quality Assurance (PSQ). Dr.
Maricar Ching, the Asst. Dean of the Graduate School, is the secretary of both the
Biology Teachers Association (BIOTA) of the Philippines and the National Research
Council of the Philippines (NRCP) Division 3. Dr. Ching is also a board member of the
Department of Science and Technology Philippine Council for Health Research and
Development (DOST-PCHRD) Scholars Society. Ms. Aleli Lozano, head of the Physical
Sciences and Math Department is the Asst. Treasurer of the Philippine Association of
Chemistry Teachers. Dr. Agnes Magnaye, a faculty from the Biological Sciences Dept. is
a board member of BIOTA Philippines.
The Vice President for CEU-Makati has been awarded the Association of
Colleges of Pharmacy (PACOP) Lifetime Achievement. Elected officers in the Philippine
Association of Colleges of Pharmacy (PACOP) are Dr. Maria Donnabelle Dean as
Assistant Secretary, Mrs. Regina Jazul as PRO, and Dr. Cecilia Santiago as Board of
Director. Dr. Dean and Mrs. Jazul are program heads of Makati and Malolos while Dr.
Santiago is the Dean of the School of Pharmacy.
the
Dr. Elena Borromeo, dean of the School of Optometry, is the Vice President of
Philippine Cornea and Contact Lens Institute (PCCLI) while Dr.
25
Roji. Soriano us the Vice President of the Philippine Society of Public Health and
Occupational Optometry. On the other hand, Dr. Maria Concepcion Anda and Dr. Fides
Masanga are presidents of the Quezon City and Pasig Chapters Integrated Philippine
Association of Optometrist (IPAO).
Faculty members in the School of Nursing hold positions in Association of
Diabetes Nurse Educators of the Philippines (ADNEP). Ms. Anjanette S. De Leon is the
secretary and Chair of Education Committee, Mrs. May P. Mendinueto is the treasurer
and Chair of the Research Committee, and Mrs. Joylyn L. Mejilla is the immediate past
president and Chair of the Ethics Committee.
Dr. Maria Rita D. Lucas, Dean of the School of Education, Liberal Arts, Music and
Social Work, is the Asst. Secretary, while Dr. Milagros Borabo, Head of the CEU PACE,
is the Executive Director, of the Philippine Association for Teachers and Educators
(PAFTE). Dr. Lolita D. Pablo, Head of the Community Outreach Department is the exofficio of the National Association for Social Work Education Incorporated (NASWEI),
accreditor of Philippine Accrediting Association of Schools, Colleges, and Universities
(PAASCU) and a member of the Commission on Higher Education (CHED) Technical
Committee for Social Work program. Prof. Ricky Rosales, Head of the Communication
and Media Program is a Board Member of the Philippine Association for Media and
Information Literacy (PAMIL). Prof. Angelito E. Ayran Jr., Music program Head, is the
NCR coordinator of the Philippine Choral Directors Association (PCDA). Dr. Arlene
Salve-Opina, Head of the Languages Department is the President and one of the
founding members of the Global Educators' Organization (GEO). Mr. Dante Gabano is
the Assistant Treasurer of the Speech Communication Organization of the Philippines,
Inc. (SCOP) .
Dr. Pearly P. Lim, Dean of the School of Dentistry is a councilor of the
International Association for Dental Research (IADR) - South East Asia Division. Some
School of Dentistry faculty members have positions in professional organizations. Dr.
Stephen Almonte is elected president of the Philippine Dental Association (2019-2020)
while Dr. Joann Joven is the Vice President of the Philippine Prosthodontic Society. Dr.
Marjorie Quieng is the Secretary of the Fil- Chi Dental Foundation Inc. as well as the
Editor in Chief of the Fi-Chi Dental Foundation Inc News Letter.
Dr. Rosemarie So, Dean of the School of Accountancy and Management, is a
board member of the Philippine Association of Collegiate Schools of Business (PACSB)
and the Philippine Society for Educational Research and Evaluation, Inc. (PSERE).. Dr.
Rowel Antonio is a board member of the Entrepreneurship Educators of the Philippines.
Student Achievements
Conquering international music scenes, Centro Escolar University Singers Manila
bagged four gold prizes in their recent participation in the 8th Bali International Choir
Festival
in
Indonesia.
With
358
choir
performances
from
ten
countries and 26 provinces of Indonesia, the CEU Singers Manila brought home the Gold
Prize in two categories, the Open Mixed and the Musica Sacra both in the elimination and
championship rounds. The choir was also one of the Grand Prix finalists, the highest level
category in the said music tilt.
26
After the CEU Singers Manila success in Bali, Indonesia, they flew to Singapore
for the 12th Orientale Concentus where they were also declared as Gold Prize Winner for
Open Mixed and Folklore categories.
Centro Escolar University (CEU) Scorpions clinched the first runner-up title in the
2019 Philippine Basketball Association (PBA) D-League best-of-five final series against
the Cignal-Ateneo Blue Eagles on June 25, 2019 at the Ynares Sports Complex.
Centro Escolar University School of Accountancy (SAM) students landed 1st
Runner-Up in the recent Philippine Chamber of Commerce and Industry- Business Idea
and Development Award (PCCI-BIDA) 2019, Technology Category on September 27,
2019 at the Philippine Chamber of Commerce and Industry Plaza.
A group of SAM students also participated in the 5th Annual Monsoon SIM
Enterprise Resource Management Competition (MERMC) 1st International Grand Final
Hong Kong 2019 held at the The Hong Kong Polytechnic University, Hong Kong in August
10 & 11.
A student from the School of Accountancy and Management was accepted to
become a core participant among the 180 participants to the University Mobility in Asia
and the Pacific Collaborative Online International Learning (UMAP-COIL) Program.
A Dentistry student represented Asia in the global competition held in Constance, Germany
in June 2019.
School Year 2020-2021
Student Enrolment
The University had an enrolment of 12,988 for the first semester and 12,469 for the
second semester of school year 2020-2021. The total enrolment for the three campuses for
the first semester increased by 5.80% while it increased by 10.70% for the second semester
compared to that of SY 2019-2020. The school year 2020-2021 was the third year of the
regular offering of first year after the K-12 transition and thus no enrolment for regular fourth
year students.
Foreign Student Enrolment
Foreign student enrolment for SY 2020-2021 was 169 and 156 for the first and
second semesters, respectively. A decrease of 18.36% and 19.17% for the first and second
semesters, respectively, was noted compared to that of the previous school year. Dentistry
is the program where most of the foreign students enrolled.
Performance in Board Examination
COVID 19 did not hinder the Escolarians to ruled anew in the 2020 licensure
examinations administered by the Professional Regulation Commission. The consistent
outstanding performance of the graduates in the PRC exams affirms CEU’s determination
and commitment to an unrelenting pursuit of its vision to be the University of first choice, as
well as indicative of its sincere effort and high intention to provide quality education among
its clientele.
School of Medical Technology in CEU Manila shows a stellar performance as they
rank top 5 among the Top Performing School of Medical Technology in January 2021
Licensure Examination. The program continued to soar high as a Medical Technology
graduate from CEU Makati rank third while a CEU Manila Medical Technology student rank
9th in the March 2021 Medical Technologist Licensure Examination.
The BS Pharmacy Licensure Examination takers of April 2021 has 100% passing
percentage. Furthermore, a graduate of BS Pharmacy garnered the top 4 position in the
April 2021 Pharmacist Licensure Examination.
Accreditation and Recognition
As a higher learning institution, CEU continues to level up its academic standards at
par with international yardsticks. CEU got a 3-star rating based on the University
Performance Metrics or UPM. A 3-Star University means that CEU plays a role in the
national higher education system and can facilitate student mobility in ASEAN countries.
CEU specifically got 4 stars in strategic governance, education, IT infrastructure, and in
community services. The UPM system is a university benchmarking framework that
evaluates Third Generation Universities on how well they have adapted to the Fourth
Industrial Revolution which complies not only with the traditional ranking and rating
approaches but also incorporates contemporary elements including Entrepreneurship,
Innovation, Digital Transformation, Student Mobility and Ethical Value. UPM system
evaluates university performances through 54 indicators across 8 categories in research
and applied orientation (http://upm.vn/docs).
Although CEU has earned recognition for the most number of accredited programs
of any university, specifically programs granted the Level 1V accreditation status, its greater
challenge is to maintain this status and, foremost, to attain full accreditation of all its
academic programs at the highest levels. This challenge has served as impetus to further
improve and sustain quality assurance through accreditation of its programs, specifically of
those not yet accredited.
Centro Escolar University School of Law and Jurisprudence (CEU-SLAJ) through its
Office of the Legal Aid received Level II Recertification from the Supreme Court (SC)
pursuant to A.M. No, 19-03-24 SC Rule 138-A or the rule pertaining to Law Student
Practice. The CEU-SLAJ takes pride in being the first law clinic in Makati to earn the Level II
Certification on the mentioned rule.
The Federation of Accrediting Agencies of the Philippines (FAAP) granted several
programs of Centro Escolar University the accreditation status for having satisfactorily met
the standards and fulfilled all the requirements of the Philippine Association of Colleges and
Universities Commission on Accreditation (PACUCOA).
The following graduate school programs in CEU Manila were granted Level 1
accredited status on July 7, 2020: PhD. In Mathematics Education, PhD. In Pharmacy,
Ph.D. in Southeast Asian Studies, PhD in Higher Education Management, and Doctor pf
Public Administration while Master of Business Administration was granted Level IV
accredited status.
Level IV Re-accredited status was granted by FAAP to Biology and Psychology
programs of CEU Manila while level 2 Re-accredited status were given to Hotel and
Restaurant Management and to Tourism programs.
In CEU Makati, Medical Technology, Nursing, Pharmacy and Psychology programs
were all granted Level 2 Re-accredited status by FAAP.
The Information Technology program of CEU Malolos was granted Level 2 Reaccredited status by the same accrediting organization.
International Linkages
Centro Escolar University forged a strategic partnership with Penang Institute,
Malaysia on March 12, 2021 to develop teachers’ skills in teaching media and information
literacy (MIL) through staging a mini TechCamp. TechCamp Malaysia-Philippines, a funded
alumni project of TechCamp Malaysia 2020, will train and deepen secondary school
teachers’ and teacher educators’ understanding of the importance of MIL in a fast moving,
digital media landscape. TechCamp Malaysia-Philippines is a virtual three-day workshop
from March 29 to 31, 2021 via Zoom, with speakers from Indonesia, Malaysia, the
Philippines, Spain, Thailand, the United States, and the Netherlands.
Four Centro Escolar University students remarkably completed the 3-month online
program and garnered outstanding scores in the University Mobility in Asia and the Pacific
Collaborative Online International Learning (UMAP-COIL). UMAP is a voluntary association
of government and non-government representatives of the higher education (university)
sector that conducts this kind of program to provide student opportunities to gain enriched
learning and international experience.
Four students of Centro Escolar University School of Education, Liberal Arts, Music
and Social Work (SELAMS) finished the Institute of Innovative Global Education (IIGE)
Kansai University Engaged/Exchange Online Learning (KU-EOL) Program for the period of
October 1, 2020-December 14, 2020.
The School of Pharmacy of CEU Manila has an exchange program with the
Department of Pharmacy Stikes Buleleng Singaraja. Aside from the exchange program,
they also have joint research projects with the Faculty of Pharmacy, Universitas Airlanngga
and with Wayne State University for their PharmD program.
Quality Assurance
The continuous improvement program of CEU even at this time of COVID 19
pandemic is evident in its various programs which were conducted in an online platform.
In preparation of the ISO recertification, a remote mock audit was conducted in
August 3, 2020 followed by the briefing on the remote ISO audit on August 10 and 12, 2020.
The actual virtual ISO recertification audit was held in August 24-27, 2021. ISO
recertification of Centro Escolar University was approved and granted.
To help and guide the data and document custodian in their online filing, electronic
file management meeting/orientation was conducted in October 22, 2020.
In preparation with the remote IQA visit, series of orientation-reorientation of the
Internal Quality Auditors were conducted and were held online via zoom on October 28-29
and November 4-5, 2020. The activity aimed at enhancing CEU’s Quality Management
System through an effective internal quality audit process delivered by competent and
committed auditors.
To continuously improve service to various clientele, the University developed a
Helpdesk System to address the online queries of its customers/clients. Customer Feedback
Form (CFF) was made available online and is incorporated in the Helpdesk system (HD
System). The concerned work units can view the queries through the database and address
the client’s queries/feedback, They then submit a report on the Customer Feedback together
with their action to the Planning and Monitoring Department (PMD). The PMD validates the
report to the database and prepares a monthly summary report submitted to the Quality
Management Representative (QMR) and to the CEU community.
Series of activities were conducted in relation to the Midyear Management Review
and Strategic Plan. Audit of the Midyear Management Review and Strategic Plan was held
on March 5, 2021, Strategic Plan Asynchronous Workshop was conducted in March 9-10,
2021, and the Presentation of CEU’s Strategic Plans was held in March 15, 2021. was
conducted Periodic monitoring of the Annual Operation Plan is conducted online and the
work units indicate their activities and attainment of their objective.
In connection with the SGS surveillance visit conducted on May 26-27, 2021, a
virtual mock audit was conducted in May 3-5, 2021 while data and document orientation/
reorientation and readiness on the remote audit was held on April 16, 2021.
To recognize the quality service and exemplary efforts of both teaching and nonteaching personnel, Centro Escolar University held its online annual Quality Awards Day on
November 21, 2020 The event gives recognition to the deserving members of the University
from the three campuses; Manila, Makati, and Malolos as The Teacher of the Year, NonTeaching of the Year (Non-Supervisory and Supervisory Category), Research of the Year,
Best Internal Quality Audit (IQA) Sub-Team, Best Quality Circle, and CEU STARS.
Faculty Achievements
Dr. Olivia M. Limuaco, the Vice President for CEU Makati and Dean of Studies,
receives not one but two lifetime achievement awards. She is the recipient of the first
PACOP Lifetime Achievement Award given last February 25, 2020 by the Philippine
Association of Colleges of Pharmacy on the occasion of its 45th Anniversary held at New
Coast Hotel, City of Manila. On September 25, 2020, she also received the PPhA Lifetime
Achievement Award on the occasion of the Philippine Pharmacists Association Centennial
Celebration Virtual Ceremony. Aside from these two lifetime achievement awards, she also
received the Philippine Federation of Professional Associations (PFPA) Distinction Award in
the field of Pharmacy and the Professional Excellence Awards in the Professional
Association Development Category given last February 27, 2021 at UP Bahay ng Alumni on
the occasion of the 8th PFPA Distinction and Excellence Awarding Ceremony. Her valuable
contribution as officer or as president of the associations allow her to make a difference in
the field of pharmacy as a profession and have benefited the members of the organizations
and the pharmacy students.
Centro Escolar University School of Optometry Dean, Dr. Elena Borromeo was
awarded as one of the 2020 Professional Regulation Commission Outstanding
Professionals for her remarkable contributions in the field of Optometry during the PRC
virtual awarding ceremony with the theme, Outstanding Professionals: The Shining Light
Amidst the Challenges of Time. Besides her leadership as dean, Dr. Borromeo exemplifies
active involvement in community outreach programs. She also shares her expertise by
being resource persons in various optometry conferences.
Dr. Erna V. Yabut, Vice-President for Research and Evaluation, is the current
president of the Philippine Society for Educational Research and Evaluation, Inc. (PSERE),
the chair of the University Belt Consortium Research and Extension Linkages, and the
secretary of the National Research Council of the Philippines Research Foundation, Inc.
Dr. Carlito B. Olaer, the VP for Student Affairs is one of the Board of Directors of the
Philippine Association of Practitioners of Student Affairs and Services, Inc. Mrs. Juanita
Alamillo, the Asst. to the VP for Student Affairs- Extramurals, is the secretary of the
National Capital Region Athletics Association and a board member of the Universities and
Colleges Basketball League (UCBL) and board member-Executive Council of both the
Women’s and Men’s National Collegiate Athletics Association. Dr. Lani Sakay, the Asst. to
the VP for Student Affairs - Foreign Students, is one of the board members of the Philippine
International Friendship and Understanding Association. Mr. Dante Gabano, the Asst. to the
VP for Student Affairs -Student Organization is the Asst. Treasurer of the Speech
Communication Organization of the Philippines and the Business Manager of the Philippine
Association of Practitioners of Student Affairs and Services, Inc.-NCR
Dr. Maria Rita D. Lucas, Dean of the School of Education, Liberal Arts, Music and
Social Work, is the Chairman of Philippine Association for Teacher Education (PAFTE)-NCR
Chapter. Dr. Lolita D. Pablo, head of the Social Work program, is a member of the CHED
Technical Committee for Social Work, an accreditor of the Philippine Association of Schools,
Colleges and Universities, immediate past president of the National Association for Social
Work Education and was the recipient of Outstanding Leadership Award given by the
ASEAN Social Work Consortium in June 2021. Prof. Ricky Rosales, Head of the
Communication and Media Program is a group member of Malaysia-Philippines MIL
advocacy. Prof. Angelito E. Ayran Jr., Music program Head, is a board member of the
Philippine Choral Directors Association (PCDA). Dr. Arlene Salve-Opina, Head of the
Languages Department is the President and one of the founding members of the Global
Educators' Organization (GEO).
Dr. Pearly P. Lim, Dean of the School of Dentistry is a councilor of the International
Association for Dental Research (IADR) - South East Asia Division. Some School of
Dentistry faculty members have positions in professional organizations. Elected in the
Philippine Prosthodontic Society are Dr. Joann Joven who is the President, Kathrine Grace
Geni is the secretary and Dr. Nancy Garcia is a board member. Dr.. Dr. Marian Almyra
Naranjilla is the secretary of the Association of Philippine Orthodontics and the editor-inchief (acting) for Journal of Philippine Orthodontics.. Dr. Marjorie Quieng is the Secretary of
the Fil-Chi Dental Foundation Inc. as well as the Editor in Chief of the Fi-Chi Dental
Foundation Inc News Letter.
Faculty members in the School of Nursing hold positions in Association of Diabetes
Nurse Educators of the Philippines (ADNEP). Ms. Anjanette S. De Leon is the secretary and
Chair of Education Committee, Mrs. May P. Mendinueto is the treasurer and Chair of the
Research Committee, and Mrs. Joylyn L. Mejilla is the immediate past president and Chair
of the Ethics Committee. Dr. Pearl Ed Cuevas is the secretary of Philippine Nursing
Research Society, Inc. (PNRS) while Dr. Sofia Magdalena Robles is a Comelec member of
the Philippine Nursing Association. Mr. Erljohn Gomez is the Finance Director of Sigma
Theta Tau International Honor Society for Nursing.
Faculty members from the School of Optometry ae actively involved in their
professional organization. Dr. Roji Soriano and Dr. Romeo Valdez are the president and
secretary of the Integrated Philippine Association of Optometrists (IPAO) respectively. Dr.
Maria Lintag Yu is conferred with the title of Fellow by the Royal Institute of Optometrists,
Singapore.
Dr. Cecilia D. Santiago, dean of the School of Pharmacy, is the PACOP Director.
Claire Palma, a faculty of the School of Pharmacy won for the Rapid Fire Presentation
Category B-Pharmaceutical Science during the 3rd PACOP Research Forum and 7th
Research Congress of the College of Pharmacy – AdU during the 2020 National Pharmacy
Week PACOP Day for her research “Citrus microcarpa EO- loaded Niosomes: Preparation,
Characterization and Cytotoxicity on MCF-7 and MDA-MB-231 cells.
Dr. Julieta Z. Dungca, Dean of the School of Science and Technology, is the elected
secretary of the Philippines Society of Research (PSERE), Inc. and the treasurer of the
Philippine Society of Parasitology (PSP), Inc. Dr. Carmencita Salonga, head of the
Guidance and Counseling Department is the Vice President for External Affairs of the
Philippine Guidance & Counseling, Inc. Dr. Maria Dolores Delacruz, head of the Planning
and Monitoring Department is the treasurer of the Philippine Society for Quality Assurance
(PSQ). Dr. Maricar Ching, the Asst. Dean of the Graduate School, is the treasurer of
Biology Teachers Association (BIOTA) of the Philippines and the recording secretary of the
National Research Council of the Philippines (NRCP) Division 3. Dr. Ching is also a board
member of the Department of Science and Technology Philippine Council for Health
Research and Development (DOST-PCHRD) Scholars Society. Ms. Aleli Lozano, head of
the Physical Sciences and Math Department is the Asst. Treasurer of the Philippine
Association of Chemistry Teachers National.
Dr. Maria Flordeliza L. Anastacio, VP for CEU Malolos and Mr. Pilipino Ramos of the
Accounting Program are DAAD Internal Deans Course international mentor. Mrs. Maricar A.
Veranga, the head of the College of Hospitality Management is a co lead of the Open
Educational Resources for Business and Management for CHED Region 3 and board
adviser of the Council of Hotel and Restaurant Educators of the Philippine for Region 3 and
while Ms. Vanessa de Guzman, a faculty member of the same College is the Asst.
Treasurer of the same organization. Dr. Shirley Wong, the head of the Dentistry program is
the treasurer of the Philippine Section-Academy of Dentistry Internal (ADI) and a core group
of the Allied Health Education Discipline-OERs of CHEDRO3 BAYANIHAN while Dr. Faye
Evaristo is the president of Philippine Dental Association (PDA).- Pampanga Chapter.
Faculty members from CEU Makati have been elected in different positions by their
professional organizations. Dr. Maria Corazon L. Andoy, the head of the Student Affairs
Office is the Interim President of the Philippine Association of Practitioners of Student Affairs
and Services (PAPSAS)-NCR Chapter. Dr. Maria Donnabelle U. Dean, program head of the
Pharmacy Department, is the Vice President for Luzon of the Philippine Pharmacists
Association, Inc. (PPhA) and the Asst. Secretary of the Philippine Association of Colleges of
Pharmacy (PACOP). Mrs. Luzette Mijares, the program head of the Hotel and Restaurant
Management Program of CEU Makati, is the elected Assistant Treasurer of the Hospitality
and Tourism Council of Deans and Program head (HosTCode NCR). Dr. Juana Rosa F.
Martinez, the coordinator of the Guidance and Counseling Section is a co-founding member
and treasurer of the Association of Placement Practitioners of Colleges and Universities,
Inc. (APPCU) while Mr. Ronald Mendoza, the coordinator of the Science Laboratories
Section is the president and founding member of the Philippine Society of Academic
Laboratory Technicians, Inc.
Student Achievements
School of Medicine student is the grand champion and the People’s Choice Award
during the Tagisan 2021 organized by the Association of Philippine Medical CollegesStudent Network (APMC-SN).
An Optometry student is one of the delegates in the Ayala Young Leaders Congress
2021. A number of Optometry students are elected in several national student organizations.
One of them is the Public Relations Officer of The Street Classroom. Another student is the
Vice President for Sports and Recreation and Best Mentor during their Youth Club Protege
Program of Manila Downtown YMCA Youth Club while one of Optometry students is the
president of SaMasa youth Organization.
Students from the School of Education, Liberal Arts, Music and Social Work is the
first prize winner in the Solo Instrument Category and in the Chamber Music Category
during the 2020 NCAA Composition. Two (2) School of ELAMS students were awarded
Outstanding Academic Achievement in the Kansai University Engaged/Exchange Online
Learning, (KU-EOL), Japan SY2020-2021 and another student was given Certificate of
Excellence. Furthermore, several students were awarded with Certificate of Excellence
University of Mobility in Asia and the Pacific – Collaborative Online International Learning
S.Y. 2020-2021, Japan
Pharmacy students bagged different awards during the PHARMAKOLYMPICS 2020,
a national competition. They were the champion in the Infographics Making Contest, Digital
Poster Making Contest and Vlog Making Contest. They were announced 1st runner-up in the
Essay Writing Contest, Virtual Patient Counseling Contest. They were the 2nd runner-up in
the National Pharmacy Quiz Bee organized by the FJCPPhA. Students of the same program
were elected as secretary of Federation of Junior Chapters of the Philippine Pharmacists
Association and another student is a board of director.
A student of Tourism Management in CEU Malolos is on Top 10 of the National
Leadership Apprenticeship Program, another student is a National Student Director for
Culture and Sports and a student of the same program is the President for Central Luzon for
Junior Tourism and Hospitality Management Association of the Philippines. Meanwhile, a
Dentistry student in CEU Malolos is the president of Philippine Dental Student Association
(PDSA) – National.
Business of Issuer
Thirteen programs in CEU-Manila have Level 4 accredited status PACUCOA
(BS Pharmacy, BS Biology, BS Psychology, BS Business Administration, BS Medical
Technology, Liberal Arts, Bachelor of Secondary Education, Bachelor of Elementary
Education, Doctor of Dental Medicine, BS Nutrition and Dietetics, Master of Arts, Master of
Business Administration and Master of Science). BS Biology, BS Psychology, BS
Pharmacy, BS Business Administration, BS Medical Technology, Liberal Arts, Bachelor of
Secondary Education, Bachelor of Elementary Education, Doctor of Dental Medicine, BS
Nutrition and Dietetics are Level 4 reaccredited. Doctor of Optometry is Level 3 accredited
status. Nursing and Social Work is Level 3 accredited by PAASCU. Two programs are on
Level 2 status (BS Hotel and Restaurant Management and BS Tourism Management).
Nine programs are on Level 1 status (BS Accountancy, BS Computer Engineering, BS
Computer Science, BS Information Technology, Ph.D. in Higher Education Management,
Ph.D. in Mathematics Education. Ph.D. in Pharmacy, Ph.D. in Southeast Asian Studies,
and Doctor of Public Administration). These programs have met the FAAP’s stringent
requirements specifically, (a) reasonably high standard of instruction as manifested by the
quality of its teachers, (b) highly visible community extension programs, (c) highly visible
research tradition, (d) strong staff development, (e) highly creditable performance of
graduates in licensure examinations, and (f) existence of working consortia or linkages with
other schools/agencies.
For CEU-Malolos, three programs have Level 4 accredited status (BS Business
Management, Liberal Arts, BS Psychology), six programs have Level 2 accredited status
(BS Hotel and Restaurant Management, BS Tourism Management, Doctor of Dental
Medicine, BS Pharmacy, BS Nursing, and B.S. Information Technology), and Level 1 for
Bachelor of Elementary Education.
CEU-Makati has eight Level 2 accredited status (BS Hotel and Restaurant
Management, BS Tourism Management, BS Computer Science, BS Business
Administration, BS Medical Technology, BS Psychology, BS Nursing and BS Pharmacy)
and two programs (Doctor of Dental Medicine and BS Information Technology) are Level 1
status. The summary is as follows:
Accredited
College/School
Programs
CEU-Manila
B.S. Biology
B.S. Psychology
B.S. Pharmacy
B.S. Business Administration
B.S. Nutrition and Dietetics
Doctor of Dental Medicine
Liberal Arts
Accreditation
Level
Period Covered
Accrediting
Agency
Level 4 2nd RA
Level 4 2nd RA
Level 4 1st RA
Level 4 1st RA
Level 4 1st RA
Level 4 1st RA
Level 4 1st RA
Bachelor of Secondary Education
Level 4 1st RA
Bachelor of Elementary Education
Level 4 1st RA
B.S. Medical Technology
Level 4 1st RA
July 2019-July 2024
PACUCOA
July 2019-July 2024
April 2017-April 2022
Oct. 2017-Oct. 2022
Jan. 2018-Jan. 2023
Jan. 2018-Jan. 2023
Sept.
2018-Sept.
2023
Sept.
2018-Sept.
2023
Sept.
2018-Sept.
2023
March
2019-March
2024
Doctor of Optometry
B.S. Social Work
B.S. Nursing
B.S.
Hotel
and
Restaurant
Management
B.S. Tourism Management
B.S. Accountancy
B.S. Information Technology
Level 3
Level 3
Level 3
Level 2
Aug. 2018-Aug. 2023
May 2016-May 2021
May 2016-May 2021
July 2019-July 2024
Level 2
Level 1
Level 1
B.S. Computer Engineering
Level 1
July 2019-July 2024
Oct. 2016-Oct. 2019
Sept.
2017-Sept.
2020
March
2018-March
2021
PAASCU
PACUCOA
B.S. Computer Science
Level 1
March
2021
2018-March
GRADUATE SCHOOL
Master of Arts
Level 4
Master of Business Administration
Level 4
Master of Science
Level 4
Ph.D.
in
Higher
Education
Management
Ph.D. In Mathematics Education
Ph.D. in Pharmacy
Ph.D. in Southeast Asian Studies
Doctor of Public Administration
CEU-MALOLOS
B.S. Business Administration
Liberal Arts Program
Science Program (B.S. Psychology)
Doctor of Dental Medicine
B.S. Tourism Management
B.S.
Hotel
and
Restaurant
Management
B.S. Pharmacy
B.S. Nursing
B.S. Information Technology
Bachelor of Elementary Education
CEU-MAKATI
B.S.
Hotel
and
Restaurant
Management
B.S. Tourism Management
B.S. Business Administration
B.S. Computer Science
Level 1
March
2019-March
2024
March
2019-March
2024
March
2019-March
2024
Feb. 2020-Feb. 2023
Level 1
Level 1
Level 1
Level 1
Feb. 2020-Feb. 2023
Feb. 2020-Feb. 2023
Feb. 2020-Feb. 2023
Feb. 2020-Feb. 2023
Level 4
Level 4
Level 4
Level 2
Level 2
Level 2
June 2015-June 2020
June 2015-June 2020
June 2015-June 2020
Nov. 2016-Nov. 2021
Nov. 2016-Nov. 2021
Nov. 2016-Nov. 2021
Level 2
Level 2
Level 2
Level 1
Nov. 2016-Nov. 2021
Nov. 2016-Nov. 2021
Nov. 2019-Nov. 2024
Dec. 2018-Dec. 2021
Level 2
Aug. 2018-Aug. 2023
Level 2
Level 2
Level 2
B.S. Psychology
B.S. Medical Technology
B.S. Pharmacy
B.S. Nursing
Doctor of Dental Medicine
B.S. Information Technology
Level 2
Level 2
Level 2
Level 2
Level 1
Level 1
Aug. 2018-Aug. 2023
Aug. 2018-Aug. 2023
March
2019-March
2024
Nov. 2019-Nov. 2024
Nov. 2019-Nov. 2024
Nov. 2019-Nov. 2024
Nov. 2019-Nov. 2024
Aug. 2018-Aug. 2021
Aug. 2018-Aug. 2021
PACUCOA
PACUCOA
CEU was awarded rank 5 in the Top Performing Schools during the January 2021 Medical
Technologists Licensure Examination by the Professional Regulation Commission and the
Professional Regulatory Board of Medical Technology.
Likewise CEU also got a 3-star rating in itself-benchmarking with the Asian top universities
through the Regional System – University Performance Metrics or UPM. The UPM evaluation
system is different as it does not comply only with the traditional ranking and rating approaches
but also incorporates contemporary elements including Entrepreneurship, Innovation, Digital
Transformation, Student Mobility and Ethical Value. It provides a detailed look at an institution, to
identify its strength in 8 categories: strategic governance; education & training; research;
innovation; innovation ecosystem; IT infrastructure & digital learning resource;
internationalization and community service. In general, UPM assesses the responsiveness of the
universities in the region in the Industrial Revolution 4.0 (4IR) era. CEU, being a 3-Star university,
has a role in the national higher education system and can facilitate student mobility in ASEAN
countries. CEU specifically got 4 Stars in Education and training, strategic governance, IT
infrastructure, and in Community Services. There were 40 UPM participating universities in 2020.
With CEU, there were 3 others from the Philippines.
To build further its status as an institution of higher learning, the University continues to
bring its academic standards at par with internationally recognized certifying bodies.
CEU successfully earned the AUN-QA Certification for the ten programs based on
the AUN-QA criteria: expected learning outcomes, program specification, program
structure and content, teaching and learning approach, student assessment, academic
staff quality, support staff quality, student quality and support, facilities and infrastructure,
quality enhancement, output. The programs with AUN-QA certification are BS Biology, BS
Hotel and Restaurant Management, BS Pharmacy, BS Tourism Management, Dentistry,
BS Business Administration, BS Nutrition and Dietetics, BS Nursing, BS Psychology, and
Doctor of Optometry.
The University entered into a 25-year lease contract with Philtrust Bank on July 29,
2004. The lease covers the use of Philtrust Bank’s land, building and improvements
thereon located at 259-263 Sen. Gil Puyat Avenue and Malugay Street, Makati City. The
lease commenced on January 1, 2005 for the operation of the CEU-Makati Extension
Campus for school year 2005-2006.
CEU complies with environmental laws. Its buildings are inspected regularly by the
Office of the Mayor of Manila for sanitation and other safety measures, and the University
pays the corresponding regulatory fees.
Contribution of Product Services to Revenues
Liberal Arts
Science
ACS/AMT
2018-2019
5,713.384
42,626,636
31,149,597
2019-2020
5,658,007
32,325,786
37,038,689
2020-2021
4,673,444
58,561,928
47,935,722
Interim
948,350
12,437,168
8716488
Dentistry
Education
Medical
Technology
Music
Nursing
Nutrition/HE/Touris
m/HRM
Optometry
Pharmacy
Social Work
Graduate School
Law
Medicine
CEU-Senior High
CEIS and CELP
TOTAL
172,935,835
1,572,953
60,187,004
144,597,042
958,613
69,861,414
174,207,478
726,278
89,249,312
26,380,257
153,329
16,912,048
1,934,734
16,401,487
42,595,356
1,978,682
25,118,631
39,254,546
1,078,734
47,383,645
20,434,200
216,352
9,573,963
4,902,483
25,980,655
64,947,848
1,273,515
18,732,049
11,332,206
17,468,000
124,747,433
93,326,688
732,326,688
30,679,390
51,071,267
1,780,521
13,124,663
8,830,169
23,197,725
29,246,645
29,456,097
1,937,953
25,485,666
9,227,426
25,181,598
118,322,636
683,105,726
5,352,614
5,182,912
427,363
4,511,248
1,087,597
6,374,488
213,915,697
699,390,839
13,921,585
117,098,247
Tuition Fee Increase
There was a 5% increase in tuition fees and 10% in other fees for SY 2018-2019,
and 5% increase in tuition fees and other fees for SY 2019-2020. There was no tuition
increase from SY 2019-2020 to SY 2020-2021 because of the COVID 19 Pandemic. In fact,
there were some fees that were reduced because of the temporary cessation on oncampus classes.
Effect of Government Regulation with Respect to Increase in Tuition Fees
The Commission on Higher Education (CHED) promulgates guidelines to be
followed by Higher Educational Institutions (HEIs) intending to increase their tuition and
other fees. The guidelines provide, among others:
“A Certificate of Intended Compliance (COIC) stating that
(70%) of the proceeds to be derived from the tuition fee increase shall be
used for the payment of the salaries, wages, allowances and other
benefits of its teaching and non-teaching personnel and other staff x x x.
“The 20% shall go to the improvement of the following:
1.
2.
3.
4.
5.
6.
Modernization of buildings
Equipment
Libraries
Laboratories
Gymnasium and similar facilities and
Payment of other cost of operations.
“Only 10% is left for return on investment.”
2
The University has consistently distributed 70% of the increase in tuition fees to its
employees on a semestral basis. The 70% increase in tuition fees is distributed in the form
of the benefit known as incremental proceeds, employee development programs, and other
benefits.
The University regularly spends on capital expenditures to improve its facilities.
These expenditures are sourced from internally-generated funds and generally exceed the
allotted 20% of the tuition fee increase for the year.
Except for competition from other schools and universities, the rising cost of goods
and materials and adverse economic situation which can affect operational costs and
enrollment figures, there are no other major risks involved in the business of the University.
Item 2. Properties
CEU’s main campus site, which houses 13 buildings, is located on a two-hectare
prime real estate in Mendiola, Manila. Its campus in Malolos, Bulacan is located on a
seven-hectare property along McArthur Highway.
The properties in Manila campus are covered by TCT Nos. 11919, 69761, 76251,
76252, 76253, 92437, 99602 and 171233. The Malolos property is covered by TCT No.
T87162.
The University has no property that is subject to any mortgage, lien or
encumbrance.
In connection with the establishment of CEU-Makati Campus, the University has
been leasing the Philtrust Bank Building since 2004 for 2M fixed rental per month for 25
years plus a percentage of the annual income for its CEU-Makati, Gil Puyat Campus.
Pursuant to the authority granted by the Board of Directors and as part of the
University’s expansion program for CEU-Makati Campus, the University purchased on July
5, 2006 Seaboard Centre Condominium on Esteban Street, Legaspi Village, Makati City on
installment basis through internally generated funds. The CEU-Makati, Legaspi Village
Campus is covered by CCT Nos. 99424, 99167, 99410, 99425, 99426, 99427, 99411,
99428, 99429, 99430, 99431, 99432, 99168, 99408, 99169, 99170, 99433, 99434, 99435,
99436, 99437, and 99438. The University is currently working on the consolidation of these
titles.
Item 3. Legal Proceedings
CEU is not a party nor is any of the University’s principal properties subject to any
pending legal proceeding that could be expected to have a material adverse effect on the
results of its operations.
Item 4. Submission of Matters to a Vote of Security Holders
3
There were no matters submitted to a vote of security holders during the fourth
quarter of the fiscal year covered by this report.
PART II – OPERATIONAL AND FINANCIAL INFORMATION
Note: Last 19 November 2020, the Securities and Exchange Commission approved the
amended By-Laws of the University. The amended By-Laws provided for the following
changes:
1. Change in fiscal year from 01 April - 31 March of the following
year to 01 June - 31 May of the following year;
2. Change in the date of the Annual Stockholders’ Meeting from
every fourth Tuesday of July to every fourth Friday of October.
Because of the change in fiscal year, CEU was audited twice for fiscal year 2020-2021, in
order to include the interim period which consist of 01 April 2021 to 31 May 2021.
Item 5. Market for Issuer’s Common Equity and Related Stockholder Matters
Market Price of and Dividends on Registrant’s Common Equity and Related
Stockholder Matters
Market Information
The University’s common equity is traded at the Philippine Stock Exchange.
Following are the high and low prices for each quarter within the last two (2) fiscal years:
Fiscal Year Ended 2020
April 2019 - June 2019
July 2019 - September 2019
October 2019 - December 2019
January 2020 - March 2020
Fiscal Year Ended 2021
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
4
High
Low
8.12
7.23
7.20
7.08
6.96
6.56
6.90
5.50
April 1, 2020 – June 30, 2020
July 1, 2020 – September 30, 2020
October, 2020 – December 31, 2020
January 1, 2020 – March 31, 2021
April 1, 2021 – May 31, 2021
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Interim Period
(change in fiscal
year)
6.74
6.60
7.00
7.96
7.33
5.51
6.30
6.49
6.50
6.49
The closing price per share of the University’s common shares as of June 22, 2021
was 6.60.
Holders
As of July 30 2021, there are 1,012 common shareholders. The name of the top
twenty (20) shareholders and the number of shares and the percentage of total shares
outstanding held by each are as follows:
Stockholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
USAUTOCO, Inc.
PCD Nominee Corp. – Filipino/Others
U.S. Automotive Co., Inc.
Jose M. Tiongco
Corazon M. Tiongco
Erlinda T. Galeon
Generosa T. Cabrera
Security Bank Corporation TA# 1090
Alvin Anton C. Ong
Maria Concepcion I. Donato
Emma de Santos Oboza
Alicia de Santos Villarama
Estate of Trinidad V. Javellana
Manuel M. Paredes
Amado R. Reyes
Ma. Alexa J. Intengan
Leland &/or Melita Villadolid
Angelo A.S. Suntay
Valery C. Virata
Albina Teopaco Jahn
Number of Common
Shares Held
126,620,891
88,520,366
55,963,803
13,439,614
10,115,904
9,252,982
9,190,225
8,072,299
1,344,308
994,465
758,190
758,190
713,666
650,107
650,107
634,621
560,523
453,186
387,206
366,942
Percentage of
Total Shares (5)
34.0000
23.7693
15.0273
3.6088
2.7163
2.4846
2.4677
2.1676
0.3610
0.2670
0.2036
0.2036
0.1916
0.1746
0.1746
0.1704
0.1505
0.1217
0.1040
0.0985
There are no transactions that relate to an acquisition, business combination or
other reorganization which will affect the amount and percentage of shareholdings of any of
the University’s directors, officers (as a group) or any person owning more than 5% of the
University’s outstanding capital stock
5
Dividends
Dividends declared for the two most recent fiscal years, i.e., Fiscal Year ended
March 31, 2020 and Fiscal Year ended March 31, 2021, are as follows:
Fiscal Year Ended March 31, 2020
(April 1, 2019– March 31, 2020)
No dividend declaration.
Fiscal Year Ended May 31, 2021
April 01, 2020 - May 30, 2021)
Cash dividend amounting to .40 per share was paid on 22 September 2021 to
Stockholders of record as of 27 August 2021.
Dividends shall be declared only from retained earnings.
There are no restrictions that limit the ability to declare dividends on common
equity.
Recent Sales of Unregistered or Exempt Securities
The University did not sell any unregistered or exempt securities in the past three
(3) years.
Item 6. Management ‘s Discussion and Analysis or Plan of Operation
Financial Performance (2020-2021;2019-2020; 2018-2019)
Tuition and Other School Fees decreased by 14.09% from the previous year’s
1,314,456,816 to this year’s 1,129,208,087 as compared to last year’s decrease by
7.97% to 1,314,456,816 from 1,428,330,595 in 2019. This account consists of Tuition
Fees, Other Fees, and Income from Other School Services. Other fees are comprised of
fees for electricity, registration materials, miscellaneous classroom expenses, laboratory
materials, health services fees, library fees and development fees. Income from Other
School Services comprised of fees for diploma and certificates, transcript of records,
entrance examinations and various collections for specific items or activities. Other
Revenues reported in 2021 pertain to rental income amounted to
2,301,090. Other
revenues such as rental income, donation income and dividend income amounting to totals
of 35,019,895 in 2020 and 24,485,113 in 2019 were reported separately in the financial
statements. Interest income were reported at 3,565,698 in 2021,
4,717,701 in 2020,
and 5,258,829 in 2019
The total revenues from contracts with customers decreased to 1,139,959,168 in
2021 from 1,351,672,511 in 2020 and from 1,473,275,857 in 2019 while the Operating
6
Expenses were reported at 1,010,437,130 in 2021 from 1,304,580,130 in 2020 and from
1,308,549,798 in 2019
Net income of the University for 2021 increased to 155,256,227 from
in 2020 and reported at 187,111,756 in 2019.
66,934,583
Financial Condition (2020-2021;2019-2020; 2018-2019)
The University reported a healthy cash position as of March 31, 2021. Cash and
cash equivalents were at
510,858,969 as compared to last year’s balance of
349,589,928 and 312,995,338 in 2019. Tuition and other receivables were at
344,984,005 as compared to 322,195,587 last year and 123,286,977 in 2019. The
University’s receivables consist of tuition receivables, interest receivables, and employee
and lessee receivables (classified as Other Receivables). There are no receivables from
unconsolidated subsidiaries or related parties.
Inventories, consisting of materials, uniforms and supplies, were at 14,510,927..
Other current assets, which consist largely of Advances to Suppliers, Creditable
withholding Taxes and Prepayments stood at 60,598,777.
The current assets of the University as of fiscal year ended March 31, 2021 were
930,952,678 as compared to 743,573,521 for March 31, 2020 and 503,710,405 for
March 31, 2019.
Property and Equipment were reported at
2020 and 4,807,822,273 in 2019.
Total non-current assets were at
6,095,203,401 at the end of the fiscal year.
4,924,380,695 from
4,999,659,087 in
5,164,250,723 and Total Assets were at
Accounts payable and other current liabilities decreased to 544,991,642 from
572,226,528 last year and from 404,436,505 in 2019. Deferred revenues were reported
this year at 88,955,107. Dividends payable were at
109,015,657 compared to
105,755,874 last year and 104,576,634 in 2019. Total current liabilities were at
757,109,229 at fiscal year end.
Total noncurrent liabilities as of March 31, 2021 increased to 800,104,280 from
791,861,056 last year and 575,077,660 in 2019.. Because schools are allowed to claim
10% of their capital assets as an advanced tax credit, they can no longer claim the
depreciation on these capital assets as tax deduction. Instead, the unamortized portion of
these tax credits are lodged under deferred tax liability, and is amortized yearly in
congruence with the depreciation of the capital assets. Deferred tax liabilities were at
395,568,329.
.
Upon adoption of PFRS 16 on April 1, 2019, the University recognized right-of-use asset
and lease liability. The Lease Liability - net of current portion for 2021 was at
165,000,813. Retirement liability refers to the portion of the Retirement Fund that needs
7
to be funded over the course of the expected working lives of the employees. As of March
2021, retirement liability was at 226,530,163.
The University’s stockholder’s equity stood at
compared to 4,434,328,320 as of March 2020.
4,537,989,892 as of March 2021
Change in Academic Year and FInancial Reporting Period
The University implemented a change in the academic year (i.e from June ending
March to August ending May of each year). This started in August 2019 and was reported
under the fiscal year ended March 31, 2020. This change in the academic year had an
effect on the net income reported for Fiscal Year 2020 due to the non-inclusion of April and
May 2020 realized tuition and other fees, as well as related expenses, which were reported
under Fiscal Year 2021.
The University also implemented the approved change in its financial reporting period
from April ending March to June ending May of each year because of the change in its
academic year.
Last 19 November 2020, the Securities and Exchange Commission approved the
amended By-Laws of the University. The amended By-Laws provided for the following
changes:
3. Change in fiscal year from 01 April - 31 March of the following
year to 01 June - 31 May of the following year;
4. Change in the date of the Annual Stockholders’ Meeting from
every fourth Tuesday of July to every fourth Friday of October.
Because of the change in fiscal year, CEU was audited twice for fiscal year 2020-2021, in
order to include the interim period which consist of 01 April 2021 to 31 May 2021.
Financial Performance (Interim period April 1 to May 31, 2021)
Tuition and Other School Fees were reported at 200,231,715 for the two-month period
ended May 31, 2021 as compared to the total 1,129,208,087 for the year ended March
2021 and
1,314,456,816 for the year ended March 2020. This account consists of
Tuition Fees, Other Fees, and Income from Other School Services. Other fees are
comprised of fees for electricity, registration materials, miscellaneous classroom expenses,
laboratory materials, health services fees, library fees and development fees. Income from
Other School Services consisted of fees for diploma and certificates, transcript of records,
entrance examinations and various collections for specific items or activities. Other
Revenues reported in May 2021 pertain to rental income amounted to 592,733. Other
revenues such as rental income and donation income amounting to 2,301,090 in March
2021 and 35,019,895 in March 2020 were reported separately in the financial statements.
Interest income were reported at 552,858 in May 2021 and 3,565,698 for the year ended
March 2021, and 4,717,701 in March 2020.
8
The total revenues from contracts with customers amounted 201,011,389 while the
Operating Expenses were reported at 160,956,700 for the interim period ended May 31,
2021.
Net income of the University was 41,529,541 for the interim period ended May 31, 2021
and 155,256,227 for the year ended March 31, 2021 and 66,934,583 in 2020
Financial Condition (as of May 31, 2021)
The University’s Cash and cash equivalents were at 480,047,725 as compared to the
balance of 510,858,969 in March 2021 and 349,589,928 in March 2020. Tuition and
other receivables were at 227,090,993 as compared to 344,984,005 in March 2021 and
322,195,587 in 2020.. The University’s receivables consist of tuition receivables, interest
receivables, and employee and lessee receivables (classified as Other Receivables). There
are no receivables from unconsolidated subsidiaries or related parties.
Inventories, consisting of materials, uniforms and supplies, were at 14,446,174. Other
current assets, which consist largely of Advances to Suppliers, Creditable withholding
Taxes and Prepayments stood at 69,867,587.
The current assets of the University as of May 31, 2021 were 791,452,479 compared to
930,952,678 as of fiscal year ended March 31, 2021 and 743,573,521 for March 31,
2020.
Property and Equipment were reported at
2021 and 4,999,659,087 in 2020.
Total
4,916,351,509 from
non-current assets were at
5,151,796,971
5,943,249,450 at the end of May 31, 2021.
and
4,924,380,695 in March
Total
Assets
were
at
Accounts payable and other current liabilities decreased to
439,335,804 from
544,991,642 in March 2021 and from 572,226,528 in 2020. No Deferred revenues were
reported in May 2021 because the academic year was already completed. Dividends
payable were at
108,618,157 compared to
109,015,657 in March 2021 and
105,755,874 in 2020. Total current liabilities were at 562,230,634 at the end of the
interim period.
Total noncurrent liabilities as of May 31, 2021 decreased to 789,706,206 from
800,104,280 in March 2021 and 791,861,056 in 2020... Because schools are allowed to
claim 10% of their capital assets as an advanced tax credit, they can no longer claim the
depreciation on these capital assets as tax deduction. Instead, the unamortized portion of
these tax credits are lodged under deferred tax liability, and is amortized yearly in
congruence with the depreciation of the capital assets. Deferred tax liabilities were at
394,229,305.
9
. Upon adoption of PFRS 16 on April 1, 2019, the University recognized right-of-use asset
and lease liability. The Lease Liability - net of current portion for May 2021 was at
162,564,562. Retirement liability refers to the portion of the Retirement Fund that needs
to be funded over the course of the expected working lives of the employees. As of May
2021, retirement liability was at 219,492,741.
The University’s stockholder’s equity stood at 4,591,312,610 as of May 31, 2021
compared to 4,537,989,892 as of March 2021 and 4,434,328,320 as of March 2020.
Key Performance Indicators
Key
Interim
2021
2020
Revenue
Growth
-82.27%
14.09
%
-7.97%
Return
on
Revenue
21%
14%
5%
13%
111 %
40%
Dividends divided by
net income
Dividend
Pay-out
Ratio
-
-
2019
4.17%
Manner of
Computation
Difference between
current and last year’s
tuition and other
school fees divided by
last year’s revenues
Net income divided by
Tuition and other
school fees
Return
on
Equity
1%
3%
2%
4%
Net profit divided by
average total
stockholders’ equity
Return
on
Assets
1%
3%
1%
3%
Net profit divided by
average total assets
Significance
Measures
Revenue
growth
Shows how
much profit is
derived from
every pesos of
tuition and other
school fees
Indicates how
earnings
support
dividend
payment
Measures
extent of profit
earned
Measures use
of assets to
generate
income
Liquidity
The University relies on internally generated cash to fund its working capital needs,
capital expenditures and cash dividends. It can satisfy the cash requirements and has no
plan to raise additional funds.
10
Cash flows provided by operating activities were at 203,130,323 for fiscal year
ended March 31, 2021 as compared to cash flows provided by operating activities of
242,709,073 for the previous fiscal year and 269,485,064 in 2019.
Cash used in investing activities was 16,690,042 during the fiscal year ended
March 31, 2021, as compared to cash used in investing activities of 107,441,764 for the
previous fiscal year and 167,111,098 in March 2019.
Cash used in financing activities was at 24,715,217 during the fiscal year. This
was primarily used for the payment of dividends. Cash used for financing activities was
98,803,640 for the fiscal year ended March 31, 2020 and 749,319,240 for the fiscal year
ended March 31, 2019.
Segment Reporting
The University operates in four geographical segments – Mendiola, Malolos,
Makati-Gil Puyat and Makati-Legaspi campus. The financial information on the operations
of these segments are disclosed in terms of segment assets, segment property and
equipment (net), segment liabilities, segment revenues, operating expenses and net
income/loss.
The segment report is included in Note 21 of the financial statements.
Known Trends
Effect of Government Regulation with Respect to Increase in Tuition Fees
The Commission on Higher Education (CHED) promulgates guidelines to be
followed by Higher Education Institutions (HEIs) intending to increase their tuition and other
fees. Notable among them follows:
“A Certificate of Intended Compliance (COIC) stating that (70%) of the proceeds to
be derived from the tuition fee increase shall be used for the payment of the salaries,
wages, allowances and other benefits of its teaching and non-teaching personnel and other
staff xxx.
“The 20% shall go to the improvement of the following:
1. Modernization of buildings
2. Equipment
3. Libraries
4. Laboratories
5. Gymnasium and similar facilities and
6. Payment of other costs of operations.
“Only 10% is left for return on investment.”
Education Trends
11
For school years 2019, 2018-2019 and 2017-2018, the University registered
downward trends in enrollment due to the K-12 program of the government. This downward
trend was exacerbated in the school year 2019-2020 due to the free tuition program of the
government, which caused a lot of potential enrollees to enroll in State Universities and
Colleges instead. For the school year 2020-2021, there was a notable decrease in
enrollment. After a survey conducted by the University, the decrease was due to the
COVID 19 pandemic.
Key Variable and Other Qualitative and Quantitative Factors
Currently, there are no known trends, events, or uncertainties that have a material
impact on the University’s liquidity.
The Registrant does not know of any event that will trigger any direct or contingent
financial obligation that may be material to the company, including default or acceleration of
an obligation.
There are no known material off-balance sheet transactions, arrangements, or
obligations (including contingent obligations), and other relationships of the company with
unconsolidated entities or other persons created during the reporting period.
For school year 2017-2018, there are commitments for capital expenditures such as
improvements and renovations of existing laboratories, repairs and repainting of
administration offices, improvements and maintenance of information and communications
technology and procurement of computer for Computer Education Department and different
offices which is being done every year which funding shall be derived from the increase in
tuition fees in accordance with the guidelines of the Commission of Higher Education
(CHED). For the school years 2019-2020, the University made further appropriations for
building construction and facilities renovations/improvements.
Currently, there are no known trends, events or uncertainties that have material
impact on sales, aside from downward enrollment on the nursing, tourism, and hotel and
restaurant management programs. In the last month of the fiscal year (March), the world
suffered the COVID 19 Global Pandemic. As of the writing of this report, the scale of the
effect of this Pandemic is not fully determined.
All income is derived from the normal course of operations and through interest
income on money market placements. There are no significant elements of income or loss.
Material changes from FY 2020 to FY 2021 include a decrease of 17.63 % in total
revenues, including other revenues, which resulted from the decrease in tuition and other
school fees and miscellaneous fees of 14.09% and 71.11% respectively. In FY 2021,
rebates were applied to certain miscellaneous fees due to online classes in this period of
pandemic. For costs and expenses, there was an 18.10% decrease in cost of services
resulting from decreased cost of manpower, light and water, office supplies, registration
expenses, laboratory and expenses for co-curricular activities. General and administrative
expenses posted a material decrease of 42.56% due to decreases in the janitorial and
security services, provision for credit losses, transportation and communication expenses,
12
clinical expenses and program expenses . On other income and expenses, 24.42%
decrease in interest income was reported due to lower placements and lower interest rates.
Interest expense was reported this fiscal year at 11.88 million arising from lease liability
due to the adoption of PFRS 16 on April 1, 2019. There was a decrease of 448% in foreign
exchange gains reported as foreign exchange loss this fiscal year because of lower foreign
currency placements and exchange rates. The loss on retirement/disposal assets was at
99.32% favorable movement due to the value of condemned furniture and equipment.
These material changes resulted in an increase of 131.95% in net income after tax.
New Accounting Standards
The University presented its consolidated financial statements to comply with
accounting principles generally accepted in the Philippines (Philippine GAAP) as set forth in
Philippine Financial Reporting Standards (PFRS). New and revised accounting standards,
consisting of Philippine Accounting Standards (PAS) and PFRS became effective for
financial reporting purposes.
The consolidated financial statements include the financial statements of the
University, Centro Escolar University Hospital, Inc. (the Hospital), a wholly owned
subsidiary, Centro Escolar Las Pinas (CELPI) and Centro Escolar Integrated School (CEIS) (collectively referred to as the Group).
The financial statements of the Hospital are prepared for the same reporting year as
the University.
Subsidiary is consolidated when control is transferred to the Group and ceases to
be consolidated when control is transferred out of the Group. Control is presumed to exist
when the University owns more than 50% of the voting power of an entity unless in
exceptional cases, it can be clearly demonstrated that such ownership does not constitute
control. The consolidated financial statements are prepared using uniform accounting
policies for the like transactions and other events in similar circumstances. All intercompany
balances and transactions, intercompany profits and unrealized gains and losses have
been eliminated in the consolidation.
Changes in Accounting Policies and Disclosures
The accounting policies adopted are consistent with those of the previous financial
year, except that the Group has adopted the following new accounting pronouncements
starting April 1, 2020. Adoption of these pronouncements did not have any significant
impact on the Group’s financial position or performance.
Amendments to PFRS 3, Business Combinations, Definition of a Business
Amendments to PFRS 7, Financial Instruments: Disclosures and PFRS 9, Financial
Instruments, Interest Rate Benchmark Reform
Amendments to PAS 1, Presentation of Financial Statements, and PAS 8,
Accounting Policies, Changes in Accounting Estimates and Errors, Definition of
Material
Conceptual Framework for Financial Reporting issued on March 29, 2018
Amendments to PFRS 16, COVID-19-related Rent Concessions
13
The Group has adopted the following new accounting pronouncements starting April
1, 2019. Adoption of these pronouncements did not have any significant impact on the
Group’s financial position or performance, unless otherwise discussed.
PFRS 16, Leases
PFRS 16 supersedes PAS 17, Leases, Philippine Interpretation IFRIC 4
Determining whether an Arrangement contains a Lease, SIC-15, Operating
Leases-Incentives, and SIC-27, Evaluating the Substance of Transactions
Involving the Legal Form of a Lease. The standard sets out the principles for
the recognition, measurement, presentation, and disclosure of leases and
requires lessees to recognize most leases on the balance sheet.
Lessor accounting under PFRS 16 is substantially unchanged from today’s
accounting under PAS 17. Lessors will continue to classify all leases using the
same classification principle as in PAS 17 and distinguish between two types
of leases; operating and finance leases.
The Group adopted PFRS 16 using the modified retrospective approach with
an initial application date of April 1, 2019 and did not restate comparative
amounts for the year prior to first adoption. The Group elected to use the
transition practical expedient to not reassess whether a contract is, or
contains, a lease at April 1, 2019. Instead, the Group applied the standard only
to IFRIC 4 at the date of initial application. The Group also elected to use the
recognition exemption to the lease contracts for which the underlying asset is
of low value (low-value asset) and for leases with a lease term of 12 months or
less (short-term leases).
The impact of adoption of PFRS 16 as at April 1, 2019 is as follows:
March 31, 2019,
as previously
reported
Right-of-use asset
Lease liability - current
Lease liability - noncurrent
-
Impact from
adoption of
PFRS 16
April 1, 2019
as restated
205,121,481
(12,619,721)
(192,501,760)
205,121,481
(12,619,721)
(192,501,760)
Before the adoption of PFRS 16, the Group classified each of its leases (lessee) at the
inception date as operating lease. Upon adoption of PFRS 16, the Group applied a
single recognition and measurement approach for all leases except for the leases of
low-value assets and short-term leases. For the detailed disclosures, refer to Note 19.
The Group has a lease contract for the land and building of Philtrust Bank for its
Makati-Buendia Campus which qualifies as a lease contract under PFRS 16. The
Group also has lease contracts for its water services and billboard placement which
qualify as leases of low-value assets and short-term leases.
Leases previously accounted for as operating leases
The Group recognized right-of-use asset and lease liability for the lease previously
14
classified as operating leases,except for the leases of low-value assets and short-term
leases. The right-of-use asset was recognized based on the amount equal to the lease
liability. Lease liability was recognized based on the present value of the remaining
lease payments, discounted using the incremental borrowing rate at the date of initial
application.
The lessee’s incremental borrowing rate applied to the lease liability on March 31,
2019 and April 1, 2019 was 5.71%. The lease commitments as of March 31, 2019
reconciled to the lease liability as of April 1, 2019 is as follows.
Operating lease commitment as at April 1, 2019
Weighted average incremental borrowing rate as at April 1, 2019
282,000,000
5.71%
Lease liability as at April 1, 2019
205,121,48
The Group is required to determine whether to consider each uncertain tax treatment
separately or together with one or more other uncertain tax treatments and use the
approach that better predicts the resolution of the uncertainty. The Group shall
assume that the taxation authority will examine amounts that it has a right to examine
and have full knowledge of all related information when making those examinations. If
the Group concludes that it is not probable that the taxation authority will accept an
uncertain tax treatment, it shall reflect the effect of the uncertainty for each uncertain
tax treatment using the method the entity expects to better predict the resolution of the
uncertainty.
Upon adoption of the Interpretation, the Group has assessed whether it has any
uncertain tax position. The Group applies significant judgement in identifying
uncertainties over its income tax treatments. The Group determined based on its
assessment that it is probable that its uncertain tax treatment will be accepted by the
taxation authorities. Accordingly, the Interpretation did not have an impact on the
financial statements of the Group.
Amendments to PFRS 9, Prepayment Features with Negative Compensation
Amendments to PFRS 19, Employee Benefits, Plan Amendment, Curtailment
or Settlement
Amendment to PFRS 28, Long-term Interests in Associates and Joint Ventures
Annual Improvements to PFRSs 2015-2017 Cycle.
Amendments to PFRS 3, Business Combinations, and PFRS 11, Joint
Arrangements, Previously Held Interest in a Joint Operation
Amendments to PAS 12, Income Tax Consequences of Payments on Financial
Instruments Classified as Equity.
Amendments to PAS 23, Borrowing Costs, Borrowing Costs Eligible for
Capitalization
The Registrant has no knowledge of any seasonal aspects that had a material effect
on the financial condition or results of the operations.
15
The University engaged the services of Sycip Gorres Velayo & Co. (SGV) in SY
2007-2008 to undertake the external quality assessment review of its internal audit activity
in compliance with the International Standards for the Professional Practice of Internal
Auditing (ISPPIA), specifically Standard 1312 – External Assessments. The purpose of
said external quality assessment review was to determine and, as appropriate, to improve
the internal audit activity’s compliance with ISPPIA.
SGV completed the external quality assessment review of the University’s internal
audit activity last January 28, 2008 and rendered the overall opinion that “the internal audit
activity of CEU Partially Complies to the Standards. ‘Partially Complies’ means that the
activity is making good-faith efforts to comply with the requirements of the individual
Standard or element of the Code of Ethics, section or major category, but falls short of
achieving some major objectives. These will usually represent significant opportunities for
improvement in effectively applying the Standards or Code of Ethics and/or achieving their
objectives. Some deficiencies may be beyond the control of the activity and may result in
recommendations to senior management or the board of the organization.”
The audit was completed in the last fiscal year and the University is committed to
move in the direction of the risk-based auditing process. The plan will be set forth by the
University’s Quality Management Systems Group along with the Internal Audit Department.
Item 7. Financial Statement
The audited financial statements and supplementary schedules to the financial
statements duly submitted to BIR* are attached as Exhibit 1 hereto.
Item 8. Changes in and Disagreements with External Accountants on
Accounting and Financial Disclosure
1. External Audit Fees and Services
Audit Fees and Related Fees
The appointment of Sycip, Gorres, Velayo and Co. (SGV) as external auditor of the
University for the fiscal year ending March 31, 2021 was approved by the stockholders
during the annual meeting on October 30, 2020.
In compliance with Securities Regulation Code (SRC) Rule 68, Ms. Djole S. Garcia
was designated as partner in-charge from FY 2018 to FY 2021 while Ms. Josephine
Adrienne A. Abarca and Mr. Christian Lauron were designated as partner in-charge in FY
2016 to FY 2017 and FY 2014 to FY 2015 respectively. Ms. Janet Alvarado-Paraiso
has been the partner in-charge for five years. Her appointment started in 2009.
In 2021 and 2020, the University paid 1,048,100 and 1,005,000 respectively, VAT
exclusive, to Sycip, Gorres, Velayo and Co. (SGV) for the audit of the University’s annual
16
financial statements, as well as assistance in the preparation of the annual income tax
returns.
In May 2021, the University paid 366,560, VAT exclusive, to Sycip, Gorres, Velayo and
Co. (SGV) for the audit of the University’s two-month period ended May 31, 2021 interim
financial statements, as well as assistance in the preparation of the annual income tax
returns.
There is no other assurance and related services by the external auditor that are
reasonably related to the performance of the audit or review of the University financial
statements.
Tax Fees
In 2011, the University paid 240,000, VAT exclusive to Sycip, Gorres, Velayo and
Co. (SGV) for the performance of a tax compliance review for the fiscal year ended March
31, 2010 covering income tax, expanded withholding tax, fringe benefit tax and withholding
tax on wages. The review involved a study of the University’s opposition and practices and
procedures in relation to specific tax laws, regulations and rulings. The objectives were to
determine whether or not the tax position, practices and procedures adopted and
maintained are in compliance with the tax laws and regulations; top identify areas where
non-compliance are noted and quantify, if possible, the extent of the University’s exposure
thereon, and to provide recommendations to improve or correct the University’s tax
practices and procedures in compliance with the tax laws and BIR regulations.
Other Fees
There are no other services provided by the external auditor, other than the services
reported.
Audit Committee Pre-approval Policy
CEU’s Audit Committee is composed of the Chairman, Dr. Emil Q. Javier,
(independent director) and members, Dr. Angel C. Alcala, Dr. Alejandro C. Dizon and Atty.
Sergio F. Apostol.
The Audit Committee is required to pre-approve all audit and non-audit services
rendered and approve the engagement fees and other compensation to be paid to the
external auditor.
The Audit Committee found the services and fees for external audit reasonable and
approved the same following a conference with the external auditors and the University’s
financial officers to clarify the scope, extent and details of the audit.
Changes in and Disagreements with External Accountants on Accounting and
Financial Disclosure
17
There was no change in nor disagreement with External Accountants on accounting
and financial disclosures.
PART III. CONTROL AND COMPENSATION INFORMATION
Item 9. Directors and Executive Officers of the University
Directors and Executive Officers
Name
Age
Citizen
ship
Positions
Term
of
Office
Yearly
1
Basilio C.
Yap
72
Filipino
Chairman of the Board –
April 25, 2014
2
Ma. Cristina
D. Padolina
745
Filipino
Director - July 25, 2006
President/Chief Academic
Officer - Aug. 18, 2006
Yearly
3
Angel C.
**
Alcala
92
Filipino
Director
- July 22, 2008
Yearly
18
Directorship Held
in Other Companies
Chairman, President & Directior
– U.S. Automotive Co., Inc.,
USAUTOCO, Inc., Philtrust
Realty Corporation, Manila
Prince Hotel, Cocusphil
Development Corporation, U.N.
Properties Development
Corporation and Seebreeze
Enterprises
- Vice Chairman –
Philtrust Bank
- Chairman, Manila Hotel
Corporation
- Chairman, Manila
Bulletin Publishing
Corporation
- Chairman, CEU
Hospital, Inc. and
Centro Escolar Las
Pinas, Inc.
- Professor Emeritus,
University of the Philippines,
Los Baños
- Director, Centro Escolar
University Hospital, Inc.
- Vice Chairman & President,
Centro Escolar Las Pinas, Inc.
- Chairman, Silliman
University-Angelo King Center
for Research and
Environmental Management
(SUAKCREM), PATH
Foundation Philippines,
National Network of Quality
Assurance Agencies, Inc.
- Professor Emeritus, Silliman
University
- Member, Board of Trustees,
4
Emil Q.
Javier**
81
Filipino
Director
- July 10, 2002
Yearly
5
Benjamin C.
Yap
75
Filipino
Director
- July 22, 2014
Yearly
6
Alejandro C.
Dizon
61
Filipino
Director
- Aug. 31, 2007
Yearly
7
Emilio C.
Yap III
50
Filipino
Directors
- Sept. 1, 2009
Yearly
19
Silliman University
- President, Cap College
Makati
- Trustee, Asia Rice
Foundation, Head Advisor,
Biotech Coalition of the Phils., - Academician, National
Academy of Science &
Technology (Phil)
- Board Member, International
Service for the Acquisition of
Agri-Biotech Applications
(South East Asia Center)
- Chairman, Coalition for
Agricultural Modernization of
the Phils.
- Chairman, Nutrition Center of
the Philippines
- Director: CEU Hospital, Inc.
Del Monte Pacific Ltd.
Centro Escolar Las Pinas, Inc.
- Member, Advisory Com.
Japan International Coop.
Agency, Phils.
- President and Chairman,
Benjamin Favored Son, Inc.,
- Chairman, House of Refuge
- Director, USAUTOCO, Inc
- Director, Manila Hotel Corp.
- Director, CEU Hospital, Inc.
- Vice President – Quality &
Patient Safety & Chief Quality
Officer; St. Lukes Medical
Center
- Active Consultant, General
Surgery, Institute of Surgery,
St. Lukes Medical Center
- Fellow and President,
Philippine College of Surgeons
- Fellow, American College of
Surgeons
- Examiner & Member,
Chairman Board of Directors &
Governors, Philippine Board of
Surgery,
- Asst. Professor, UERMMMC
Department of Surgery College
of Medicine
- Chairman, Manila Prime
Holdings
- Director, Manila Bulletin
Corporation, Manila Hotel,
Philtrust Bank and US
Automotive Co., Inc.
8
Corazon M.
Tiongco
72
Filipino
Director
- July 25, 2000
Assistant Treasurer
since Aug. 12, 2005
Yearly
9
Johnny C.
Yap
49
Filipino
Director
- Oct. 26, 2007
Yearly
-
Director, Centro
Escolar University
Hospital, Inc.
- - Director, Centro
Escolar Integrated
School, Inc.
- Vice Chairman & Treasurer,
Euromed Laboratories
Philippines, Inc.
- Director, Philtrust Bank
- Director, Las Piñas College
- Chairman, Café France Corp.
Executive Officers Who Are Not Directors
Name
Age
Citizen
ship
Position
1
Sergio F.
Apostol
86
Filipino
Corporate Secretary
- Feb. 26, 2010
2
Cesar F.
Tan
67
Filipino
3
Jayson O’S.
Ramos
40
Filipino
3
Maria Clara
Perlita Erna
V. Yabut
56
Filipino
4
Teresa R.
Perez
59
Filipino
5
Olivia M.
Limuaco
65
Filipino
Treasurer
- April 17, 2006
Asst. Corp. Sec.
– Oct. 1, 2009
University Legal Counsel
- July 2017
Compliance Officer
– July 2019
VP-Research &
Evaluation – Jan. 29,
2010
AVP- Research &
Evaluation - Aug. 18,
2006
Head, EDP Department –
Aug. 1, 2001
VP-Academic Affairs
– Jan. 29, 2010
AVP- Academic Affairs
- July 25, 2008
Acting AVP-Academic
Affairs - July 27, 2007
VP-Makati Campus
- August, 2013
Term
of
Office
Yearly
Yearly
Yearly
Directorship Held
in Other Companies
- Chairman, Kaytrix Agri-Aqua
Corp.
- Director, Manila Hotel
- Treasurer, Centro Escolar
University Hospital, Inc., Centro
Escolar Integrated School, Inc.,
Centro Escolar Las Piñas, Inc.
Corporate Secretary, Centro
Escolar Integrated School, Inc.
Yearly
None
Yearly
- Vice President, Centro
Escolar Integrated School,
Centro Escolar Las Piñas, Inc.
Yearly
-
-
20
Secretary-General,
Federation of Asian
Pharmaceutical
Association (FAPA)
President, Philippine
Pharmacists
Association (PphA)
Member, Council of
Advisers of Philippines
Association of Colleges
of Pharmacy (PACOP)
6
Rhoda C.
Aguilar
48
Filipino
7
Ma.
Flordeliza L.
Anastacio
61
Filipino
8
Carlito B.
Olaer
58
Filipino
9
Ma. Rolina
S. Servitillo
53
10
Jericho P.
Orlina
Bella Marie
L. Fabian
Bernardita
T. Traje
11
12
University Registrar
- July 25, 2014
Acting University
Registrar – June 1, 2013
VP-Malolos Campus
- July 25, 2014
-Officer-in-Charge, CEU
Malolos
- November, 2013
VP-Student Affairs
– July 30, 2010
Acting AVP- Student
Affairs, Student Affairs
Office
- since July 25, 2008
OIC, Student Affairs
Office –
- since May 3, 2008
Yearly
None
Yearly
None
Yearly
None
Filipino
VP-Administration &
Accounting – Jan. 2017
Yearly
55
Filipino
Yearly
59
Filipino
Yearly
60
Filipino
AVP- Business Affairs –
Jan. 2017
AVP-Administration –
Jan. 2017
Assistant Controller –
Aug. 18, 2006
Assistant Treasurer –
March 8, 1995 to Aug. 18,
2006
- Vice President, Centro
Escolar Integrated School,
Centro Escolar Las Piñas, Inc.,
Centro Escolar University
Hospital, Inc.
AVP, Centro Escolar University
Hospital, Inc.
None
Yearly
None
Significant Employees
All employees are expected to make reasonable contribution to the success of the
business of the University. There is no “significant employee” as defined in Part IV(A)(2) of
the SRC Rule 12 (i.e., a person who is not an executive officer of the registrant but who is
expected to make a significant contribution to the business).
Deans
Name and Address*
1.
2.
3.
4.
Maria Dinna P. Aviñante
088 San Juan Apalit Pampanga
Josue N. Bellosillo
No. 13 Doña Ines, Alabang Hills,
Muntinlupa City
Charito M. Bermido
th
33-C 11 Ave., Murphy, Quezon City
Elena C. Borromeo
8-A Kool Street East Fairview
Subd.Quezon City
Position*
Dean (OIC)
Term of
Office*
1 year
Directorship Held in
Other Companies
None
Dean
-
None
Dean
3 years
None
Dean
2 years and 6
months
None
21
5.
6.
7.
8.
9
10.
11.
12.
13.
14.
Julieta Z. Dungca
Makabakle, Bacolor, Pampanga
Pearly P. Lim
48B Pangasinan St., Quezon City
Ma. Rita D. Lucas
584-C San Andres St., Malate, Manila
Elizabeth C. Roces
339 A & V Subdivision, Panginay,
Balagtas, Bulacan
Cecilia D. Santiago
973 Bambang St., Bocaue, Bulacan
Rosemarie I. So
839 M. Dela Fuente Sampaloc, Manila
Christine S. Tinio
39 J. de Ocampo St., DBP Village
Almanza, Las Piñas City
Cecilia G. Uncad
11 Gladiola Mall, Gardenville Condo
Sta. Mesa, Manila
Elvira L. Urgel
7 Sinag St., Mandaluyong City
Dr. Erna V. Yabut
1408 Instruccion Street Brgy. 498,
Sampaloc Sta. Mesa Manila
Dean
3 years
None
Dean
3 years
None
Dean
3 years
None
Dean
2 years
None
Dean
3 years
None
Dean
3 years
None
Dean
3 years
None
Dean
3 years
None
Dean
3 years
None
Dean (OIC)
1 year
None
Term
of Office*
1 year
Directorship Held
in Other Companies
None
Assistant Dean
3 years
None
Assistant Dean
3 years
None
Assistant Deans
Name and Address*
1.
2.
3.
Maricar W. Ching
1158 Masangkay Street, Manila
Mary Iodine Lacanienta
P29-11 7th Street Villamor Airbase
Pasay City
Aileen C. Patron
54B Faith St., Goodwill 1, San
Bartolome, Novaliches, Quezon City
Position*
Assistant Dean
(Acting Capacity)
Associate Deans
Name and Address*
Position*
1.
Alex J. Bienvenido Alip, Jr.
Associate Dean
2.
Josephine Carnate
2533 Lemery Street Sinaglong Manila
Associate Dean
22
Term
of Office*
2 years and 8
months
Directorship Held
in Other Companies
None
None
Academic Department Heads
Head
Term
of Office*
3 years
Directorship Held
in Other Companies
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
2 years
None
Head
3 years
None
Head
3 years
None
Directorship Held
in Other Companies
None
Name and Address*
1.
2.
3.
4.
5.
6.
7.
Elisa B. Ayo
989 Algeciras St., España, Manila
Jonathan P. Catapang
2 Sto. Niño St. Barangay Holy Spirit
Quezon City
Dorothea C. Dela Cruz
Blk 24A, Lot 3, Phase 3D Silvestre
Street, Sto. Niño, Meycauayan, Bulacan
D’Ariel J. Javellana
1322-A Maceda St., Sampaloc,
Manila
Zenaida R. Los Baños
Morning Glory St., Ridgemont Village
Cainta, Rizal
Aleli V. Lozano
847 Inosentes Street, Mandaluyong City
Arlene S. Opina
U411, M86, BCDA, Diego Silang Village
Ususan, Taguig City
Position*
Program Heads 2
1.
2.
3.
4.
5.
6.
7.
8.
Name and Address*
Position*
Maria Donnabel U. Dean
1920 C, Luzon Avenue, Sampaloc
Manila
Maria Carmen S. Dizon
Block 30, Lot 11, Phase 1C,
San Lorenzo South, Sta. Rosa, Laguna
Regina A. Jazul
L24 B530 Phase 5, Rose St., Heritage
Homes, Loma de Gato, Marilao, Bulacan
Mae Angeline M. Lontoc
033 Arabejo St., Gatchalian Subd.,
Phase 2, Brgy. Manuyo,
Dos Las Pinas City
Maria Wanda I. Martinez
8 Liverpool Merville Park, Parañaque
City
Pilipino A. Ramos
66 M. Santiago Street Sta. Ines Plaridel
Bulacan
Ricky R. Rosales
123 Villa Europa Royale Subdivision
Panay Ave., Quezon City
Cresencia M. Santos
L-6, B-5 Queensland Village Novaliches,
Program Head
Term
of Office*
3 years
Program Head
3 years
None
Program Head
3 years
None
Program Head
3 years
None
Program Head
3 years
None
Program Head
1 year
None
Program Head
3 years
None
Program Head
3 years
None
23
Quezon City
9.
10.
Maricar A. Veranga
B4, L35, Sampaguita St., Sta. Rita
Village, Guiguinto, Bulacan
Shirley S. Wong
27 Scout Madrinan St., South Triangle
Quezon City
Program Head
3 years
None
Program Head
3 years
None
Head
Term
of Office*
3 years
Directorship Held
in Other Companies
None
Head
1 year
None
Head
3 years
None
Head
3 years
None
Administrative
Officer
3 years
None
Head
5 months
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
3 years
None
Head
1 year
None
Non-Teaching Department Heads
Name and Address*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Maria Corazon L. Andoy
2055 C, Paseo de Carlos, Candido St.,
Mapulang Lupa, Malinta, Valenzuela City
Salvacion M. Arlante
1621 UP Bliss, Diliman, Quezon City
Lolita M. Balboa
16 I. Esteban St., Mandaluyong City
Cecilia C. Catahan
Dream Crest Home Subdivision, Phase
5B Longos, Malolos City
Emma C.Castor
28-3 Phase 2, Durlan St., Pacita 2,
San Vicente, San Pedro, Laguna
Ma. Dolores E. Delacruz
6 Michael Angelo St., SAE Barangay
Dalig, Antipolo City
Ma. Eleanor C. Espinas
#164 P. Castillo St., San Diego Subd.,
Caloocan City
Nicanor Jerry A. Griño
Mc-26, Unit 405 Pamayanang Diego
Silang Village, BCDA, Taguig City
Rommel N. Jotic
Unit 5-E, Talas Apartment Condominium
301 Kapilya St., San Miguel, Manila
Frederick R. Llanera
242 Los Angeles St., Brookside Hills,
Cainta, Rizal
Rosario Donalyne L. Manigbas
22 Queen’s Road, Project 8, Q.C.
Ivan Perry B. Mercado
199 Barangay Santor, Tanauan,
Batangas
Teresita S. Mijares
2943 Lorenzo dela Paz St., Pandacan,
Manila
Lolita D. Pablo
4012-A Dangal St., Bacood, Sta. Mesa
Manila
Eufrecina Jean DR. Ramirez
806A Marquitos Street Sampaloc Manila
Position*
(Acting Capacity)
24
16.
17.
18.
19.
Engr. Ronie U. Siniguian
01 Buenconsejo St., Planview,
Mandaluyong City
Maria Corazon C. Tiongco
1231 T. San Luis Street Pandacan,
Manila
Bernardita T. Traje
B-34, L-10 Adelita St., Evergreen Exec.
Village, Bo. Bagumbong, Caloocan City
Amelita T. Valencia
L-25, B-4, Heritage Homes, Longos
Malolos City
Head
3 years
None
Head
-
None
Head
3 years
None
Head
3 years
None
Asst. Head
Term
of Office*
3 years
Directorship Held
in Other Companies
None
Asst. Head
3 years
None
Assistant Heads
Name and Address*
1.
2.
Position*
Benjamin M. Roman
341 Basilan St., DM2 Subdivision
Brgy. San Roque, Cainta, Rizal
Nelia PL. Sacopon
Lot 23, Block 20, Phase 1 Jerusalem St.
Golden City Arabu II-F, Imus, Cavite City
University Legal Counsel
Name and Address*
1.
Term
of Office*
Position*
Jayson O'S. Ramos
470 Boni Ave. New Zaniga Mandaluyong
City
Legal Counsel
-
Directorship Held
in Other Companies
None
Family Relationships
Mr. Basilio C. Yap and Mr. Benjamin C. Yap are relatives within the second degree
of consanguinity, Dr. Emilio C. Yap III and Dr. Johnny C. Yap are relatives within the
second degree of consanguinity. Mr. Basilio C. Yap and Mr. Benjamin C. Yap who are
relatives within the second degree of consanguinity and Dr. Emilio C. Yap III and Dr.
Johnny C. Yap who are also within the second degree of consanguinity are relatives within
the third degree of consanguinity.
Involvement in Certain Legal Proceedings
The University is not aware of any legal proceedings in the past five (5) years to
date involving its directors and officers which are material to the evaluation of the ability
and integrity of any director or officer of the University.
25
No director or officer has been convicted by final judgment during the last five (5)
years up to the present of any offense punishable by Philippine laws or by the laws of any
other country.
Likewise, the University has no knowledge of pending legal proceedings against
any of its directors or executive officers involving: (a) any bankruptcy petition filed by or
against any business of which its directors or executive officers is subject; or (b) any
judgment or decree permanently or temporarily limiting or suspending their involvement in
any type of business, securities, commodities or banking activities; or, (c) any violation of a
securities or commodities law or regulation and the judgment has not been reversed,
suspended or vacated.
Item 10. Executive Compensation
Salaries and Benefits of Executive Officers
Name and
Position
Fiscal Year
Annual Salary
Bonus
Other Annual
Compensation
Total
Compensation
PRES. PADOLINA
VP LIMUACO
2019-2020
11, 044, 514.21
1,583,232.54
N/A
12,627,746.75
VP PEREZ
2020-2021
10,642,449.02
1,558,820.85
N/A
12,201,269.87
VP YABUT
2021-2022
10,642,449.02
1,558,820.85
N/A
12,201,269.87
VP OLAER
All Officers and Directors as a Group
Name and
Position
Fiscal Year
All Officers and
Directors
As a Group
2019-2020
2020-2021
2021-2022***
Annual Salary
Bonus
Other Annual
Compensation
Total
Compensation
32,649,505.98
34,124,176.53
34,124,176.53
____________________
***Figures are estimated amounts.
26
The Directors do not receive compensation for services provided as a director other
than reasonable per diems for attendance at meetings of the Board or any of its
committees.3
There are no bonuses, profit sharing stock options warrants, rights of other
compensation plans or arrangements with directors or officers that will result from their
resignation, retirement, termination of employment or change in the control of the
University.
The duties and responsibilities of the elected corporate officers are specified in the
University’s By-laws and/or Manual of Corporate Governance.
Other officers whose duties and responsibilities are set by Management are
considered regular employees of the University.
There are no outstanding warrants or options held by the University’s President,
executive officers and directors.
Item 11. Security Ownership of Certain Beneficial Owners and Management
1. Security Ownership of Certain Record and Beneficial Owners
Owners of record of more than 5% of the University’s shares of stock as of
May 31, 2019 were as follows:
Title of
Class
Name & Address of
Name of Beneficial
Record Owner &
Owner & Relationship
Relationship with
with Record Owner
Issuer
Common
USAUTOCO, Inc.
USAUTOCO, Inc
1000 UN Ave.,
Authorized
Ermita, Manila
Representative –
Authorized
Basilio C. Yap
RepresentativePosition - President
Basilio C. Yap
Relationship to
Registrant Stockholder
Common
U.S. Automotive Co., U.S. Automotive, Co.,
Inc.
Inc. Authorized
1000-1046 U.N. Ave. Representative
cor. San Marcelino
Basilio C. Yap
Ermita, Manila
Position – President
Authorized
Representative
Basilio C. Yap
Relationships to
Registrant –
Stockholder
Common
PCD Nominee Corp. Alejandro C. Dizon
– Filipino
Beneficial Owner
Aggregate Number of Shares and Percentage of All Beneficial/
Record Owners as a Group
____________________
Citizenship
Number of
Shares held
Percent
(%)
Filipino
126,620,891
34.00
Filipino
55,963,803
15.02
Filipino
49,981,575
13.43
262,304,399
70.43%
During the stockholders’ meeting on July 27, 2004, the stockholders approved the grant of annual medical allowance and
related bonuses to the members of the Board of Directors.
3
27
The proxy designated by the Board of Directors votes for the corporation.
2. Security Ownership of Management
Owners of record of CEU shares among Management as of May 31, 2019 are as
follows:
Title of
Class
Common
Common
Common
Common
Common
Common
Common
Common
Common
Directors
Amount and Nature of
Beneficial Ownership
1001 (d)
38,316 (d)
1 (d)
1 (d)
800 (d)
50,033,412 (d)
344,833 (d)
10,115,904 (d)
1,000 (d)
Basilio C. Yap (Chairman since April 7)
Ma. Cristina D. Padolina
Angel C. Alcala*
Emil Q. Javier*
Benjamin C. Yap
Alejandro C. Dizon**
Emilio C. Yap III
Corazon M. Tiongco
Johnny C. Yap
Total
Citizenship
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
60,535,268 (d)
Title of
Officers
Class
Common
Ma. Cristina D. Padolina
Common
Cesar F. Tan
Common
Olivia M. Limuaco
Common
Ma. Flordeliza L. Anastacio
Common Maria Clara Perlita Erna V. Yabut
Common
Teresa R. Perez
Common
Corazon M. Tiongco
Common
Bernardita T. Traje
Ma. Rolina S. Servitillo
Carlito B. Olaer
Rhoda C. Aguilar
Jericho P. Orlina
Bella Marie L. Fabian
Jayson O’S. Ramos
Total (excluding shares of Ma. Cristina D. Padolina,
and Corazon M. Tiongco
Aggregate Number of Shares and Percentage of
All Security Ownership of Management as a Group
Amount and Nature of
Beneficial Ownership
38,316 (d)
19,735 (d)
12,153 (d)
1,302 (d)
4,000 (d)
3,226 (d)
10,115,904 (d)
753 (d)
0 (d)
0 (d)
0 (d)
0 (d)
0 (d)
0 (d)
Percent
of Class
0.0003
0.0102
Nil
Nil
0.0002
13.4348
0.0925
2.7163
0.0002
16.25%
Citizenship
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Percent
of Class
0.0102
0.0052
0.0033
0.0003
0.0010
0.0040
2.7163
0.0001
0
0
0
0
0
0
41,169 (d)
0.0110
60,494,099 (d)
16.24%
To the best knowledge of the University, the above lists include shares beneficially
owned by the directors and officers.
Item 12. Certain Relationship and Related Transactions
The University entered into a 25-year lease contract with Philtrust Bank on July 29,
2004. The lease covers the use of Philtrust Bank’s land, building and improvements
thereon located at 259-263 Sen. Gil Puyat Avenue and Malugay Street, Makati City. The
lease commenced on January 1, 2005 for the operation of the CEU-Makati Extension
Campus for school year 2005-2006. Lease of the building from Philtrust Bank Building is
for the exclusive purpose of maintaining and operating an extension campus in Makati City,
and to conduct therein all such activities necessary to provide adequate educational
instruction and other services to its students, including authorized extra-curricular activities.
28
The consideration for the lease was principally based on the valuation of the
property by Asian Appraisal, Inc. and on the financial advisory by Buenaventura, Echauz
and Partners. Except for the respective parties’ covenants under said lease contract
between CEU and Philtrust Bank, there is no further contractual or other commitment
resulting from the arrangement that would pose any risk or contingency. There are no
other parties involved in this transaction.
The University, in line with its expansion program and for marketing purposes,
avails of advertising services of Manila Bulletin Publishing Corporation. The terms of said
advertising transactions are based on terms similar to those offered to non-related parties.
For a more detailed discussion on related party transactions, please see Note 21 of
the attached Audited Financial Statements for fiscal year ending March 31, 2019.
________________
*Independent Director
**Dr. Alejandro C. Dizon has 51,837 shares registered in his name in addition to 49,981,575 shares lodged with
PCD Nominee Corporation.
PART IV – CORPORATE GOVERNANCE
Item 13. Corporate Governance
The University has complied with the provisions of its Manual on Corporate
Governance. Continuous monitoring is being done by the Compliance Officer, Audit
Committee, President and Chief Financial Officer and Internal Auditor to assure
compliance.
On October 20, 2018, the Board of Directors attended a seminar on Corporate
Government conducted by the Institute of Corporate Directors.
On October 12, 2019, the Board of Directors attended a seminar on Corporate
Government conducted by the Institute of Corporate Directors.
On October 17, 2020, the Board of Directors and key officers of CEU attended a
seminar on Corporate Government conducted by the Institute of Corporate Directors.
CEU adheres to governance principles and best practices to attain its objectives. A
system has been established to monitor and evaluate the performance of the University
and its Management and CEU is committed. The University is committed to consistently
abide by and ensure improved compliance with the requirements of good corporate
governance.
29
PART V – EXHIBITS AND SCHEDULES
Item 14. Exhibits and Reports on SEC Form 17-C
Exhibits:
Sustainability Report
Exhibit 1
Consolidated Financial Statements and Schedules:
1. 31 March 2021
2. 31 May 2021
Exhibit 2
Quarterly Report (SEC Form 17-Q)
(Please refer to the SEC Form 17-Q previously filed
with the SEC.)
Reports on SEC Form 17-C:
(Please refer to the SEC Form 17-C previously filed with the SEC for the following
disclosures.)
August 27, 2021
Nominees for Independent Directors
May 26, 2021
Integrated Annual Corporate Governance Report
June 4, 2021
Change in Fiscal Year
July 30, 2021
Declaration of Cash Dividend
Results of Annual Stockholders’ Meeting
Results of Organizational Meeting
Item 15. CEU Sustainability Report for Fiscal Year 01 April 2020 to 31 May 2021
Contextual Information
Company Details
Name of Organization:
Location of Headquarters:
Location of Operations:
Report Boundary:
Legal entities (e.g. subsidiaries) included in
this report* Business Model, including Primary Activities,
Brands, Products, and Services
Reporting Period
Highest Ranking Person responsible for this
report:
Centro Escolar University
9 Mendiola Street San Miguel Manila
Philippines
Philippines
None for the meantime, but the Board of
Directors will explore including CEU's
subsidiaries in future reports
– Educational Institution
Fiscal Year ending beginning 01 April 2020
– 31 May 2021
Vice Chairman
*If you are a holding company, you could have an option whether to report on the holding company only or include the
subsidiaries. However, please consider the principle of materiality when defining your report boundary.
30
Materiality Process:
In determining which topics are material and will be included in the initial
Sustainability Report to be submitted by CEU, the University Management adopted
the “Stakeholders Areas of Concern” approach wherein the various stakeholders of
the University are identified, and the topics deemed material for these stakeholders
are matched.
The following stakeholders are identified:
·
Stockholders
·
Government
·
Management
·
Employees, including the employees' union
·
Students
·
Alumni
·
Communities
The foregoing stakeholders were then matched and after which, the management
has identified the following topics as the most material and shall be reported in its
first Sustainability Report.
1. Economic Performance
·
Direct Economic Value Generated and Distributed
·
Employee Management
2. Social
Employee hiring and benefits
Employee training and development
Labor management relations
Workplace Conditions, etc.
31
Relationship with community
Data Security
The determination of the above-listed topics as material does not necessarily mean that the
other topics will be disregarded; the management will include these topics in future reports.
Economic
Economic Performance
Direct Economic Value Generated and Distributed
Disclosure
Amount
Direct economic value generated (revenue)
Units
1,1329,439,802
PHP
1,171,393,830
PHP
b. Employee wages and benefits
734,664,802
PHP
c. Payments to suppliers, other operating costs
436,729,025
PHP
13,580,243
PHP
Direct economic value distributed:
a. Operating costs
d. Dividends given to stockholders and interest
payments to loan providers
32
e. Taxes given to government
26,837,456
PHP
f. Investments to community (e.g. donations,
CSR)
What is the impact and where Which stakeholders are Management Approach
does it occur? What is the affected?
organization's involvement in the
impact?
CEU, being an Institution of Government,
Recent shifts in the
Higher Learning, provides quality Community, Students, educational system have
education that prepares an Alumni
resulted in a temporary
individual to be the best in one's
but substantial “speed
chosen field. The direct economic
bump” that needs to be
impact of the University is its
hurdled by all Private
accomplishment of its task in
Educational Institutions in
providing a steady stream of
the country.
professionals in allied health
services such as Dentists,
Optometrists,
Pharmacists,
The most notable “speed
Nurses, Medical Technologists,
bump” is the COVID19
Nutritionists,
and
other
Pandemic which cause a
professionals.
huge shift in instruction.
As of this report, limited
classes were permitted
but was again stopped
because of a spike in
infections.
CEU coped with the shift
with its readiness to hold
online classes which
were
already
being
developed as early as
2014.
33
Direct
economic
value
is Employees, Suppliers, The
University
have
distributed as a result of the Environment
systems in place to
operations of the University
ensure
the
timely
through the payment of taxes,
fulfillment
of
these
payments to suppliers and
obligations.
salaries to employees.
What are the risk/s identified?
Which stakeholders are Management Approach
affected?
The economic condition currently Management,
The
University
have
affecting all the citizens of the Employees, Suppliers, develop and will continue
country also tend to affect their Government
to develop courses of
choices when it comes to career
action that are designed
and educational choices.
to
eliminate
and/or
minimize the effect of
these risks.
The current hurdle, the various
levels of community quarantine
imposed by the government
because of
COVID19 will
inevitably result in a reduction in
the University's direct economic
value.
What are
identified?
the
Examples of these are the
various online courses
offered by the University
to enable its students to
continue
with
their
studies.
opportunities Which stakeholders are Management Approach
affected
Health awareness has increased Government,
The
University
will
and hence, an increase in the Community, Students, continue increasing and
demand for Health Professionals Alumni
improving its capability in
fulfilling its role as a
Higher
Education
34
Institution.
Procurement Practices
Proportion of spending on local suppliers
Disclosure
Quantity
The management has decided to defer reporting
on this topic for the meantime as procurement
was maintained at minimum levels due to the
physical closure of the University because of the
various levels of quarantine imposed by the
Government due to COVID 19.
What is the impact and where What stakeholders
does it occur? What is the affected?
organization's involvement in
the impact?
35
Units
%
are Management Approach
The service provided by the Suppliers/Employees/
University and to a certain
extent its operations is affected Management/Students
by the timely services rendered
by its suppliers and service
provided, as well as the quality
of the supplies delivered.
The University has a
rating
system
for
suppliers in order to
ensure that there will be
no interruptions in the
supply chain.
The University likewise
has
an
internal
procurement policy and
computerized
procurement system that
ensures timely requests
and payment.
What are the risks identified?
Which stakeholders are Management Approach
affected
The service provided by the Suppliers/Employees/
University and to a certain
extent its operations is affected Management/Students
by the timely services rendered
by its suppliers and service
provided, as well as the quality
of the supplies delivered.
The University currently
have
the
following
policies
designed
to
avoid or minimize the
risk:
- Supplier accreditation
- Identification of back up
suppliers
Continuous
performance evaluation
of suppliers.
36
What are
identified?
the
opportunity/ies Which stakeholders Management Approach
are affected?
Technology keeps on evolving and Students, Suppliers
better supplies and materials are
getting more and more accessible.
The
University
management encourages
innovation proposals that
would lead to the use of
the state of the art
technology and materials
necessary
for
the
fulfillment
by
the
University of its duty to
provide
quality
and
relevant education. This
program helps expose
the University to the latest
technology that may be
used and or acquired by
the latter.
Anti-corruption
Training on Anti-Corruption Policies and Procedures
Disclosure
Quantity
Percentage of employees to whom the
organization's anti corruption policies and
procedures have been communicated to.
100
37
Units
%
Percentage of business partners whom the NA – The current policies %
organization’s anti-corruption policies and are limited internally but
procedures have been communicated to
management will explore
involving
external
suppliers
in
these
trainings
and
orientations.
Percentage of directors and management that 100
have received anti-corruption training
%
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
As an educational institution, CEU
observes the values “Scientia y
virtud” or “Science and Virtue”, and
shall never tolerate corruption in its
affairs.
Management,
employees, investors,
suppliers, students,
alumni.
The University has its
Code of Ethics for
Management. It also
adopts the respective
Codes of Ethics of the
various professionals the
University employs.
As
an
educational
institution,
corruption
shall never be tolerated in
CEU.
What are the risks identified?
Which stakeholders Management Approach
are affected?
38
Corrupt practices have somewhat Management,
become deeply ingrained in society employees,
investors, suppliers,
students, alumni.
What
are
Identified?
the
CEU will do its role as an
educational institution in
curbing corruption and in
making a difference in
society.
Opportunity/ies Which stakeholders Management Approach
are affected?
Opportunity to further strengthen the Management,
University's anti corruption policies Government,
and the existence of various support Students
groups that advocate against
corruption.
The
University
will
explore participating in
the
various
support
groups
advocating
against corruption.
Incidents of Corruption
Disclosure
Quantity
Units
Number of incidents in which directors were 0
removed or disciplined for corruption
#
Number of incidents in which employees were 0
dismissed or disciplined for corruption
#
Number of incidents when contracts with 0
business partners were terminated due to
incidents of corruption
#
39
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
No impact identified because of the existence of zero cases as disclosed above.
The university will revisit this for the succeeding periods.
What are the risks identified?
Which stakeholders Management Approach
are affected?
No impact identified because of the existence of zero cases as disclosed above.
The University will revisit this for the succeeding periods.
What
are
Identified?
the
Opportunity/ies Which stakeholders Management Approach
are affected?
No impact identified because of the existence of zero cases as disclosed above.
The University will revisit this for the succeeding periods.
ENVIRONMENT
40
*Nota Bene: Due to the various levels of community quarantine imposed by the
government because of COVID 19, in-campus operations of the University were at minimal
levels as operations mostly shifted to work at home arrangements. As such, the University,
for the time being, will not be able to report on the topic of “Environment” in this report.
The Topic on Environment shall be included in the subsequent reports to be submitted by
the University.
Resource Management
Energy consumption within the organization
Disclosure
Energy Consumption
resources
Quantity
Units
–
renewable Data was not available for N/A for now
the relevant period covered
by this report because in
campus activities were at
minimal levels due to COVID
Energy Consumption - Gasoline
19. The University will
include it in its future reports
Energy Consumption - Diesel
Energy Consumption – LPG
Energy Consumption - Electricity
Reduction of energy consumption
Disclosure
Quantity
41
Units
Energy Consumption
resources
–
renewable Data was not available for N/A for now
the relevant period covered
by this report because in
campus activities were at
minimal levels due to COVID
Energy Consumption - Gasoline
19. The University will
include it in its future reports
Energy Consumption - Diesel
Energy Consumption – LPG
Energy Consumption - Electricity
What is the impact and where does it Which stakeholders
occur? What is the organization's affected?
involvement in the impact?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What are the risks identified?
Which
stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
42
What are the opportunities identified?
Which stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Water consumption within the organization
Disclosure
Quantity
Water withdrawal
Data was not available for the
relevant period covered by this
report because in campus activities
were at minimal levels due to COVID
19. The University will include it in its
future reports
Water consumption
Units
Water recycled and reused
What is the impact and where does it Which stakeholders
occur? What is the organization's affected?
involvement in the impact?
43
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What are the risks identified?
Which
stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What are the opportunities identified?
Which stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Material used by the organization
Disclosure
Quantity
44
Units
Materials used by weight or volume
·
Renewable
·
Non-renewable
Due to the nature of its activities,
the University is not engaged in
manufacturing and thus the data
was not available for the relevant
period covered by this report.
In campus activities were also kept
at minimum levels because of the
COVID19 Pandemic.
Percentage of recycled input materials used to
manufacture the organization's primary product
and services.
The University will come up with a
means to customize and measure
these items in a University context
and will include it in its future reports
What is the impact and where does it Which stakeholders
occur? What is the organization's affected?
involvement in the impact?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What are the risks identified?
Which
stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
45
What are the opportunities identified?
Which stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Ecosystems and biodiversity (whether in upland/watershed or coastal/marine)
Disclosure
Quantity
Units
Operational
sites
owned,
leased,
managed in, or adjacent to protected
areas and areas of high biodiversity
value outside protected areas
Habitats protected or restored
None identified
IUCN Red List species and national
conservation list species with habitats in
areas affected by operations
What is the impact and where does it Which
occur? What is the organization's
46
stakeholders
are Management
involvement in the impact?
affected?
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What are the risks identified?
Which
stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What are the opportunities identified?
Which stakeholders
affected?
are Management
Approach
No significant impact determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Environmental Impact Assessment
Air Emissions
GHG
47
Disclosure
Quantity
Units
Ditect (Scope1) GHG Emissions
In campus activities were kept at
minimum levels because of the
COVID19 Pandemic.
Energy indirect (Scope 2) GHG Emissions
Emissions
(ODS)
of
ozone-depleting
The University will come up with a
substances data base and will include it in its
future reports
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
The operations of any enterprise will
inevitably have an impact on the
environment. Relevant laws such as
the clean air act, the clean water act,
and other laws implemented by the
DENR will make sure that entities
eliminate or at the very least mitigate
these effects.
Management,
employees, investors,
suppliers, students,
alumni.
CEU is among those who comply
with these requirements.
48
All the requirements are
complied with by CEU
and the University has an
Environmental
Compliance Officer who
serves as the contact
person with the DENR.
The
ECC
of
the
University is updated.
Every physical campus of
CEU
also
has
its
respective
Pollution
Control Officers.
What are the risks identified?
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Air pollutants
Disclosure
Quantity
NO
In campus activities were kept at minimum
levels because of the COVID19 Pandemic As
such, accurate data was not available for the
relevant period covered by this report.
SO
Persistent Organic Pollutants
Units
The University will come up with a data base
and will include it in its future reports
Volatile organic compounds
49
Hazardous air pollutants
Particulate Matter
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
The operations of any enterprise will
inevitably have an impact on the
environment. Relevant laws such as
the clean air act, the clean water act,
and other laws implemented by the
DENR will make sure that entities
eliminate or at the very least mitigate
these effects.
Management,
employees, investors,
suppliers, students,
alumni.
CEU is among those who comply
with these requirements.
What are the risks identified?
All the requirements are
complied with by CEU
and the University has an
Environmental
Compliance Officer who
serves as the contact
person with the DENR.
The
ECC
of
the
University is updated.
Every physical campus of
CEU
also
has
its
respective
Pollution
Control Officers.
Which stakeholders Management Approach
are affected?
50
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Solid and Hazardous Wastes
Solid Waste
Disclosure
Quantity
Total solid waste generated
In campus activities were kept at
minimum levels because of the
COVID19
Pandemic
As
such,
accurate data was not available for the
relevant period covered by this report.
Reusable
Recyclable
Units
The University will come up with a
data base and will include it in its
future reports
Composted
51
Incinerated
Residual/Landfilled
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
The operations of any enterprise will
inevitably have an impact on the
environment. Relevant laws such as
the clean air act, the clean water act,
and other laws implemented by the
DENR will make sure that entities
eliminate or at the very least mitigate
these effects.
Management,
employees, investors,
suppliers, students,
alumni.
CEU is among those who comply
with these requirements.
What are the risks identified?
All the requirements are
complied with by CEU
and the University has an
Environmental
Compliance Officer who
serves as the contact
person with the DENR.
The
ECC
of
the
University is updated.
Every physical campus of
CEU
also
has
its
respective
Pollution
Control Officers.
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
52
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
Students are now more environment Students,
conscious
Management,
Suppliers,
Community,
Government
Digital documents are gaining
widespread acceptance
Various programs on
recycling and reducing
single use materials are
curently being introduced
by the University.
The University is also
working
towards
the
digitization of several
document-based
transactions that would
drastically reduce paper
waste.
Hazardous Waste
Disclosure
Quantity
Total weight of hazardous waste generated
In campus activities were kept at
minimum levels because of the
COVID19 Pandemic As such, accurate
data was not available for the relevant
period covered by this report.
Total weight of hazardous waste transported
53
Units
The University will come up with a data
base and will include it in its future
reports The University will come up with
a data base and will include it in its
future reports
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
The operations of any enterprise will
inevitably have an impact on the
environment. Relevant laws such as
the clean air act, the clean water act,
and other laws implemented by the
DENR will make sure that entities
eliminate or at the very least mitigate
these effects.
Management,
employees, investors,
suppliers, students,
alumni.
CEU is among those who comply
with these requirements.
All the requirements are
complied with by CEU
and the University has an
Environmental
Compliance Officer who
serves as the contact
person with the DENR.
The
ECC
of
the
University is updated.
Every
physical
campus of CEU also has
its respective Pollution
Control Officers.
The University also has
contracts with several
accredited waste disposal
entities to ensure that
waste
is
properly
processed.
Effluents
Disclosure
Quantity
54
Units
Total Volume of water discharges
In campus activities were kept at
minimum levels because of the
COVID19 Pandemic As such,
accurate data was not available for
the relevant period covered by this
report.
Percent of wastewater recycled
The University will come up with a
data base and will include it in its
future reports
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
The operations of any enterprise will
inevitably have an impact on the
environment. Relevant laws such as
the clean air act, the clean water act,
and other laws implemented by the
DENR will make sure that entities
eliminate or at the very least mitigate
these effects.
Management,
employees, investors,
suppliers, students,
alumni.
CEU is among those who comply
with these requirements.
55
All the requirements are
complied with by CEU
and the University has an
Environmental
Compliance Officer who
serves as the contact
person with the DENR.
The
ECC
of
the
University is updated, as
well as all the necessary
water permits.
What are the risks identified?
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Environmental Compliance
Non-compliance with Environmental Laws and Regulations
Disclosure
Quantity
Units
Total amount of monetary fines for 0
non-compliance with environmental
laws and/or regulations.
PHP
No. of non-monetary fines for non- 0
compliance with environmental laws
and/or regulations
#
56
No. of cases resolved through dispute 0
resolution mechanism
#
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
The operations of any enterprise will Management,
inevitably have an impact on the employees, investors,
environment.
suppliers, students,
alumni.
In line with its values “Science and
Virtue”, environmental concern is
part of accountability which the
University strives to deeply ingrain in
all its activities.
What are the risks identified?
All the requirements are
complied with by CEU
and the University has an
Environmental
Compliance Officer who
serves as the contact
person with the DENR.
The
ECC
of
the
University is updated, as
well as all the necessary
water permits.
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
57
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
People are now more environment Students,
conscious
Management,
Suppliers,
Community,
Government
The University as an
Institution
of
Higher
Learning can help raise
awareness
on
environmental
accountability
and
conservation.
SOCIAL
Employee Management
Employee Hiring and Benefits
Employee data
Disclosure
Quantity
Units
Total number of employees
976
#
a. Number of Female Employees
600
#
58
b. Number of Male Employees
376
#
Attrition rate
10.86%
%
Ratio of lowest paid employee against minimum 1:1 Lowest rate is ratio
wage
Minimum Wage
Employee benefits
List of Benefits
Y/N
% of female
employees
who availed for
the
year
% of male employees
who availed for the
year
SSS
Y
2.56%
0.64%
Y
0
0
Y
0
0
Y
0.18%
0%
Y
36.89%
18.36%
Y
26.58%
12.88%
PhilHealth
Pag-ibig
Parental leaves
Vacation leaves
Sick leaves
59
Medical benefits (aside
from
PhilHealth)
Y
1.00%
0.55%
Housing
assistance
(aside from Pagibig)
Y
0
0
Retirement fund (aside
from SSS)
Y
0.18%
0%
Further
support
Y
4.66%
2.74%
N
N/A
N/A
N
N/A
N/A
Y
100%
100%
Y
0
0
education
Company stock options
Telecommuting
Flexible-working Hours
(Others)
Note: Availment of flexible working hours peaked at 100% because of the COVID19
Pandemic.
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
60
Management,
employees, investors,
The employees themselves are suppliers, students,
considered as stakeholders. Without alumni.
them, the University will not be able
to carry out its functions.
The
University
recognizes
the
role
played by its employees.
As such, the University
strives to comply with all
the requirements of law
with respect to labor
standards.
In
addition
to
the
minimum
labor
standards,
additional
benefits
are
also
introduced
by
management motu propio
and/or
through
negotiations with the
Union via the CBA.
What are the risks identified?
Employees
reasons.
attrition
for
Which stakeholders Management Approach
are affected?
various Management,
Students
61
The
University
is
designing a succession
plan where any change in
the employee structure
will not result to a
significant disruption in
operations.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Employee Training and Development
Disclosure
Quantity
Units
Total training
hours provided
to employees
a. Female
employees
44
hours
b.
Male
employees
44
hours
Average
training hours
provided
to
employees
a. Female
employees
5.5
hours/
employ
ee
b.
Male
employees
5.5
hours/
employ
ee
62
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
Having
agile
employees
is
indispensible
in
this
volatile,
uncertain, complex and ambiguous
environment.
Employees,
Management,
Investors
Students
What are the risks identified?
Which stakeholders Management Approach
are affected?
63
The
University
recognizes
the
and importance of employee
training
and
development. Programs
providing for responsive
training and development
are continuously being
developed
my
management.
Employees attrition may take place Management,
for any reason after the employee Students, Investors
have already undergone several
trainings.
Employee
attrition
is
inevitable. The University
cannot
compel
an
employee to stay simply
because he or she
underwent
several
trainings. This is a risk
that the University takes
because the latter cannot
affor to have untrained
employees.
The
University
is
designing a succession
plan where any change in
the employee structure
will not result to a
significant disruption in
operations.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Diversity and Equal Opportunity
Disclosure
Quantity
64
Units
% of female workers in the workforce
%
600
% of male workers in the workforce
%
376
Number of employees from indigenous
communities and/or
vulnerable sector*
Elderly – 114
Solo Parent – 0
#
*Vulnerable sector includes, elderly, persons with disabilities, vulnerable women, refugees,
migrants,internally displaced persons, people living with HIV and other diseases, solo parents, and
the poor or the base of the pyramid (BOP; Class D and E).
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
There is no observable impact with the current ratio of employees as they are all treated
equally without discrimination as to their gender, status, race, religion etc.
Workplace Conditions, Labor Standards, and Human Rights Occupational Health and
Safety
Disclosure
Quantity
65
Units
Safe Man Hours
Exact amount not available.
Hours
The University will start
counting the safe man hours
and will attempt to include
the date in future reports
No. of work-related injuries
0
#
No. of work-related fatalities
0
#
No. of work-related ill health
0
#
No. of safety drills
2
# Events
What is the impact and where does it Management Approach
occur? What is the organization’s
involvement in the impact?
66
The injuries reported are all minor Policies are included in the Quality
injuries that has no significant impact Management System Manual of the University
to operations.
to ensure the health and safety of the workforce
such as:
·
SAM 19.01 Handling of NonEmergency Cases
·
SAM 19.02 Handling of Emergency
Cases
·
SAM 19.04 Conducting Routine
Physical Examination
·
SAM 19.07 Ensuring Food and
Water Safety
·
SAM 19.08 Providing Health
Information and Wellness Activities
·
SAM 19.09 Procuring and
Disbursing
Medicines
and
Medical/Dental Supplies
Management
is
committed
to
the
implementation of these Quality Management
System processes as well as to the University’s
Occupational Safety and Health Program.
What are the risks identified?
Management Approach
67
Risk assessment of the University Controls are created to manage occupational
Health Services as of October 23, health and safety risks such as:
2019 includes the following:
·
Food and water safety
·
Infectious disease outbreak
·
Accidents
Food and water safety:
·
Food and water analysis
·
Sanitary permit of canteens
·
Canteen visits
·
·
Canteen and Food Inspection for
Safety and Healthfulness
Health certificates of canteen
personnel
Infectious disease outbreak:
·
Health and Safety Committee
·
Medical consultations
·
Monitoring of diseases
·
Monthly Summary Report
·
·
68
READINESS (Relevant Education
and Advisories on Diseases and
Injuries for Wellness)
Sick leave credits
·
Medical consultations
·
Health and Safety Committee
Accidents:
69
·
Medical consultations
·
Emergency care
·
Referrals
·
Accident benefits
·
Reimbursement scheme
·
Personal protective equipment
·
First aid kits
·
Medical Report
·
Health and Safety Committee
·
Code FLASH (Fast, Life-saving,
Accurate, Safe Rescue, HospitalReady)
Labor Laws and Human Rights
Disclosure
Quantity
No. of legal actions or employee grievances
involving forced or child labor
Units
0
#
Do you have policies that exlicitly disallows violations of labor laws and human rights
(e.g.harassment, bullying) in the workplace?
Topic
Y/N
If yes, cite reference to company policy
Forced Labor
N
No specific policy, but since the University's policies are
compliant with the Labor Code, forced labor is an
impossibility.
Child Labor
Y
The University only hires as employees those who are of legal
age.
Human Rights
Y
The University has an explicit policy against sexual
harassment. Bullying, as a form of disrespect towards others,
is punished under the employee code of conduct.
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
70
There is no observable impact with the current policies vis-a-vis child labor, forced labor,
and violation of human rights. All company policies are compliant with the requirements
of the law and as such, the commission of child labor, forced labor, and violation of
human rights are impossible.
What are the risks identified?
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Supply Chain Management
Do you have a supplier accreditation policy?
Yes, the University has a supplier accreditation policy. The policy, however is
currently under review and is undergoing modifications. The University undertakes
to attach said policy in future reports.
71
Do you consider the following sustainability topics when accrediting suppliers?
Topic
Y/N
Environmental performance
N/A
Forced Labor
N/A
Child Labor
N/A
Human Rights
N/A
Bribery and Corruption
Y
If yes, cite reference
in the supplier policy
Anti
corruption
clauses are included
in supplier contracts.
What is the impact and where does it Management Approach
occur? What is the organization’s
involvement in the impact?
The way a supplier deals with society The University is aware of its indirect effect to
has an indirect effect to the University society through its suppliers. Hence, the
University is in the process of coming up with a
means of selecting only the most socially and
ethically responsible suppliers.
72
What are the risks identified?
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Relationship with Community
Significant Impacts on Local Communities
Operations
with
significant
(positive or
negative)
impacts on
local
communities
(exclude
CSR
projects; this
has to be
business
Location
Vulnerable Does
the
groups (if particular
applicable) operation
have
impacts on
indigenous
peoples
(Y/N)?
73
Collective
or
individual
rights that
have been
identified
that
or
particular
concern
for
the
community
Mitigating
measures
(if
negative)
or
enhancement
measures
(if
positive)
operations)
74
Please refer Bry. 836, Children
No Impact
to
the Zone 91, and Youth
attached copy Pandacan,
Elderly
of the nature
Manila
and type of
Solo
community
parents
outreach
projects and
Base of the
activities and
Pyramid
the number of
(Class
D
vulnerable
and E)
individuals
and
groups
served
(next table)
Children’s
Rights
Enhancement
Measures:
(based on 1.Very
good
PD 603)
work relationship
of the outreach
For
the volunteers with
Elderlythe
elected
(based on barangay
RA 1994 – officials;
Expanded
Senior
Citizens Act
2, Accessibility
of 2010)
of the school to
For
Solo the community;
Parents
(based on 3. A systematic
RA 8972 - approach used
by the university
Solo
in assisting the
Parents
Welfare Act community,
based on the
of 2020)
people’s
Poor
identified
and
Families – expressed
Class D and needs;
E (based on
RA 11310 Pantawid
4.
A strong
Pamilyang
culture
of
Pilipino
Program or volunteerism
among
the
4Ps)
students, faculty
and
nonteaching
personnel of the
university;
5.
Regular
monitoring and
evaluation
of
community
projects
to
validate how the
efforts of the
75
outreach
volunteers
impact
on
people’s lives;
6. Strong and
sustained
support of the
CEU
management in
the
implementation
of
outreach
projects
and
activities.
76
NATURE AND TYPE OF COMMUNITY OUTREACH PROJECTS AND ACTIVITIES AND
NUMBER OF VULNERABLE INDIVIDUALS AND GROUPS SERVE
NATURE/TYPE OF
COMMUNITY
OUTREACH
PROJECT/ACTIVITY
CHILDREN
YOUTH
SENIOR
CITIZENS
A.Health and Nutrition
1. Operation
Bungi”
“
2.
Operation
Labo Mata”
Zero
“Zero
3. Deworming
4. Peri-anal Swabbling
5. Operation Tuli
6.
Nutritional
Assessment
and
Nutrition Education
7.
Cooking
Demonstration
77
SOLO
PARENTS
B.
Education and
Values Development
1. Alternative Learning
Systrem Program
2. Computer Literacy
Program
3. Day Care Program
4.
Teen
Olympics
Summer
5. Community Drama
*Vulnerable sector includes children and youth, elderly, persons with disabilities, vulnerable
women, refugees, migrants, internally displaced persons, people living with HIV and other
diseases, solo parents, and the poor or the base of the pyramid (BOP; Class D and E)
For operations that are affecting IPs, indicate the total number of Free and Prior Informed
Consent (FPIC) undergoing consultations and Certification Preconditions (CPs) secured
and still operational and provide a copy or link to the certificates if available: N/A
Certificates
Quantity
Units
FPIC process is still undergoing
N/A
#
CP Secured
N/A
#
78
What is the impact and where does it Management Approach
occur? What is the organization’s
involvement in the impact?
Every one has a role in helping those As an educational institution, the University
in the vulnerable sectors to be acknowledges it role in the forming of a more
included in all the affairs of society.
inclusive society.
What are the risks identified?
Which stakeholders Management Approach
are affected?
The risk identified is possible exposure to COVID 19. The University currently
implements strict protocols in order to avoid exposure when interacting with the
community.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
Members of the vulnerable sectors Students, Community Subject to safeguards
may benefit from the research
and the rules on research
program of the University
ethics, the University can
integrate in its research
programs
aimed
at
helping the vulnerable
sectors.
Customer Management
79
Customer Satisfaction
Disclosure
Score
Did a third party conduct
the customer satisfaction
study?
Customer Satisfaction
Exact figure not available. No
The
current
system
identifies various customers
(i.e.
students,
alumni,
internal customers) which
invlves different metrics.
The University shall come
up
with
a
way
to
consolidate
data
and
undertake to include this in
future reports.
What is the impact and where does Stakeholders
it occur? What is the organization’s affected
involvement in the impact?
Management Approach
Customer
satisfaction
ratings
reflect the overall quality of service
that customers experience within
the University
The
University
shall
continuously
improve
its
customer
satisfaction
measurement system in order
to arrive at a more responsive
feedback response system.
What are the risks identified?
Investors.
Management,
Students,
employees, Alumni
Which stakeholders Management Approach
are affected?
80
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
Technology provides an avenue for Investors.
easy collection of data
Management,
Students, employees,
Alumni
The
University
shall
continuously improve its
customer
satisfaction
measurement system in
order to arrive at a more
responsive
feedback
response
system.
In
doing so, state of the art
technology
shall
be
explored.
Health and Safety
Disclosure
Quantity
No. of substantiated complaints on
product or service health and safety
No. of complaints addressed
Units
0
N/A
N/A
N/A
Note: The lack of data with respect to this is due to the nature of the activity of the
corporation. As an educational institution, its product (rendering of educational services)
does not necessarily have health and safety issues. The university will revisit this and
discuss the matter in its future reports.
81
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
There is no observable impact with the current policies. As an educational institution, its
product (rendering of educational services) does not necessarily have health and safety
issues. The university will revisit this and discuss the matter in its future reports.
What are the risks identified?
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Marketing and labelling
82
Disclosure
Quantity
Units
No. of substantiated complaints on 0
marketing and labelling
#
No. of complaints addressed
#
0
Note: The lack of data with respect to this is due to the nature of the activity of the
corporation. As an educational institution, its product (rendering of educational services)
does not necessarily have marketing and labelling issues. The university will revisit this and
discuss the matter in its future reports.
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
There is no observable impact with the current policies. As an educational institution, its
product (rendering of educational services) does not necessarily have marketing and
labeling issues. The university will revisit this and discuss the matter in its future reports.
What are the risks identified?
Which stakeholders Management Approach
are affected?
No significant risks determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
83
What
are
identified?
the
opportunities Which stakeholders Management Approach
are affected?
No significant opportunities determined for the meantime.
The university will revisit this and discuss the matter in its future reports.
Customer privacy
Disclosure
Quantity
Units
No. of substantiated complaints on customer privacy
0
#
No. of complaints addressed
0
#
No. of customers, users, and account holders whose 0
information is used for secondary purposes
#
What is the impact and where does it Which stakeholders Management Approach
occur? What is the organization’s are affected?
involvement in the impact?
84
Customer privacy is an important Students,
component of their rights.
Employees
Alumni, The University strictly
adheres to Data Privacy
and
also
respects
matters that are not
covered by the Data
Prvacy
Law.
The
University
shall
continously improve its
policies to protect such.
The
University
currently updating
pillars of compliance.
What are the risks identified?
Which stakeholders Management Approach
are affected?
Digitization of data increases the risk Students,
of vulnerability to hackers.
Employees
What
are
identified?
the
is
its
Alumni, The
University
shall
continue improving its
data
systems
and
safeguards.
opportunities Which stakeholders Management Approach
are affected?
High-spec data protection devices Students,
are now more accessible.
Employees
85
Alumni, The
University
shall
continue
evaluating
available technology and
its suitability to the needs
of the University.
Data Security
Disclosure
Quantity
Units
No. of data breaches , including 0
#
leaks, thefts, and losses of data.
Thankfully no such
incidences
took
place.
What is the impact and where does it occur? Management Approach
What is the organization’s involvement in the
impact?
Gaining customer trust by keeping personal The University strictly adheres to the
data secure and private is a key component provisions of the Data Privacy Act. In all
of the University's Data Protection Program
its frontline service offices, all the
necessary disclosures are being made
and consents are obtained. CEU only
uses data collected in the furtherance of
its legitimate purposes and nothing more.
What are the risks identified?
Digitization of data increases
vulnerability to hackers.
Management Approach
the
risk
86
of The University shall continue
improving its data systems and
safeguards.
What are the opportunities identified?
Management Approach
High-spec data protection devices are now more The University shall continue
accessible.
evaluating available technology and
its suitability to the needs of the
University. It shall also take
advantage of available trainings in
Free data privacy trainings are always available order to increase capability.
from the National Privacy Commission
UN SUSTAINABLE DEVELOPMENT GOALS
Product or Service Contribution to UN SDGs
Key Products and Societal Value
Services
Potential Negative Management
Impact
of Approach
Contribution
Negative Impact
87
to
Education/ Providing
a Steady Stream of
Professionals such
as Doctors, Nurses,
Pharmacists,
Dentists,
Optometrists,
Psychologists,
Medical
Technicians,
Nutritionists,
Lawyers,
Social
Workers and other
fields.
Goal 3 – Good A societal tendency
health and well- to lean towards
being
these
fiels
of
education
might
result
in
the
disregard of other
Goal 4 – Quality fields,
which
is
Education
actually
also
important
in
a
holistic society.
The University shall
continue improving
its programs and
shall also continue
to
explore
the
introduction of other
degree
programs
that are responsive
to the needs of
society.
Goal 8 – Decent
growth
and
economic growth
*None/not applicable is not an acceptable answer. For holding companies, the services and
products of its subsidiaries may be disclosed.
88
SIGNATURES
Pursuantto the requirementsof Section 17^qf the Code ahd Section 141 of the
ff'f:l?ffil*:fr..lj'Jfii:Til:ilaqW.issuerbytheundersigned,there
By.
n
V,)#!;*-
/
4*
MA.CRISTINE
O. PADOLINA
Principal
Executive
Offieer
CESARF. TAN
Principa/FinancialOfficer
rqKL*J(.
MA. ROLIMAS. SERVITILLO
PrincipalOperationOfficer
sEP2| 2SZ1
SUBSCRIBED
AND SWORNTO beforeme this
day of _,
exhibiting
to me theirrespective
Philippine
Passport
Numbers,
as follows:
NAME
Ma. CristinaD. Padolina
PASSPORT
P3754596A
CesarF. Tan
EC1088843
EC8240893
Ma. RolinaS. Servitillo
DATEISSUED
Julv22,2017
May 14,2014
Julv9. 2016
affiants
PLACEOF ISSUE
DFA.NCRWest
Manila
DFA,NCRWest
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f7 T CENTRO ESCOLAR
. , /. - - D U N I V E R S I T Y
M A N I L A . M A K A T I. M A L o L o s
STATEMENTOF MANAGEMENT'S RESPONSIBII,ITYFOR FINANCIAL STATNMENTS
The Management
of CentroEscolarUniversity(CEU) is responsible
for the prcparationand fair
presentalion
of the tlnancialstalements
includingthe schedules
atlachedtherein,for the yearsended
May 31.2021,in accordance
rviththe prescribed
t'inancialreportingf'rameworkindicatedthercin.and
fbr suchinternalcontrolas management
determines
to enablethe preparation
is necessary
of financial
statements
that are l'reeliorn materialmisstatement
whetherdueto fraudor eror.
In preparingthe tlnancialstatements.
is responsiblefor assessing
management
the Company's
abilityto continueas a goingconcem.disclosingas applicablemattersrelatedto going concernand
using the going concernbasis of accountingunlessmanagement
either intendsto liquidatethe
Companyor to cc'ascoperations.
or hasno altemativebut to do so.
'[he
Boardof Direclorsis responsible
tbr overseeing
theCompany'sfinancialreportingpnocess.
The Boardof Directorsreviewsand approvesthe linancialstatementsincludingthe schedules
attached
therein.andsubmitsthesameto thestockholders.
SyCip.Cones.Velayo& Co..the independent
auditors.appointedby the stockholders
hasatdited
the llnancialstatements
ol'the cornpanyin accordance
with PhilippineStandards
on Auditing.and in
its rcportto thestockholders.
hasexpressed
uponcompletion
its opinionon the laimessof presentation
of suchexamination.
Signedthis27'hof September,2021
/il-l)y'lsu-ro c. yAp
,/ Chairnran
|
v-4r."9-!;-
MA.cRrsHNAD.pADoLtNA
PresidenWice
Chairman
llu*-
cEsARf. rm
Treasr*er
suBSCRIBI:D
ANDswoRNro before
merhis.-$EP" ?'9-2021-.
zo2l.
afl'iants
lo metheirrespectire
exhibiting
Philippine
Passports
aslirllorrs:
fuispprt No.
RASII-IO
C. YAP
MA. CRISTINAD. PADOLINA
CESARII.TAN
February
2, 2015,Manila
J u | 1 , 2 2 , 2 0M
1 7a ,n i l a
EC3334678
P37545964
P9759990A
November
ATTY,
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Doc.No.
PageNo.
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Dentistry,
Restaumnt
Managem€nt
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Programs.
tn lbrchrr E&ddn . CIIDDCer$r
of Dcrrelopoclt-ln hrdncrs Edrcatlorn. CHEDCcabr n{Osrqmct*
ln Optodr.cy Edrcatl,on. HfGlfESTUVE ofasr{do|L
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by RfCUOOA
r_ertfiGd by EAARBiolog/,pqrctroUg mannacy,Busrness
AdmrnistrittioqDenusfy,Optonr€ty,NutrltionandDleEdcs,Uber-al
Arts
(MassCommunlcation
ard PolitkalSlclence),
Educzdon
andMedkalTechnologr
Cent ro Escolar Universit y and
Subsidiaries
Consolidated Financial Statements
March 31, 2021 and 2020
and Years Ended March 31, 2021, 2020
and 2019
and
Independent Auditor’s Report
COV ER
SH EET
for
AU DI TED FI NANCI AL STAT EM EN TS
SEC Registration Number
P W 1 0 9 3
CO M PAN Y
N AM E
C E N T R O
E S C O L A R
U N I V E R S I T Y
A N D
S U B S I D I A R I E S
PRI N CI PAL OFFI CE ( No. / Street / Barangay / City / Town / Province )
9
M E N D I O L A
S T R E E T ,
S A N
M I G U E L ,
M A N I L A
Form Type
Department requiring the report
Secondary License Type, If Applicable
A C F S
C R M D
N A
CO M PAN Y
I N FO R M AT I O N
Company’s Email Address
Company’s Telephone Number
Mobile Number
ceu.edu.ph
8735-5991
09279276089
No. of Stockholders
Annual Meeting (Month / Day)
Fiscal Year (Month / Day)
1,012
7/23
3/31
CON T ACT PERSON I N FORM AT I ON
The designated contact person MUST be an Officer of the Corporation
Name of Contact Person
Email Address
Telephone Number/s
Mobile Number
Cesar F. Tan
cftan@ceu.edu.ph
8735-5991
09279276089
CON T ACT PERSON ’s ADDRESS
9 Mendiola Street, San Miguel, Manila
NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within
thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.
2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission
and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
March 31
2021
2020
ASSETS
Current Assets
Cash and cash equivalents (Note 5)
Tuition and other receivables (Note 6)
Inventories (Note 7)
Other current assets (Note 8)
Total Current Assets
P510,858,969
=
344,984,005
14,510,927
60,598,777
930,952,678
P349,589,928
=
322,195,587
13,317,885
58,470,121
743,573,521
Noncurrent Assets
Property and equipment (Note 9)
At revalued amount
At cost
Right-of-use asset (Note 19)
Goodwill (Note 4)
Other noncurrent assets (Note 11)
Total Noncurrent Assets
3,487,593,002
1,436,787,693
170,207,186
47,605,695
22,057,147
5,164,250,723
3,487,593,002
1,512,066,085
187,664,334
47,605,695
9,989,388
5,244,918,504
=6,095,203,401
P
=5,988,492,025
P
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and other current liabilities (Note 12)
Deferred revenue (Notes 14 and 15)
Dividends payable (Note 13)
Current portion of lease liability (Note 19)
Income tax payable
Total Current Liabilities
=544,991,642
P
88,955,107
109,015,657
14,141,832
4,991
757,109,229
=572,226,528
P
62,471,635
105,755,874
13,359,116
8,489,496
762,302,649
Noncurrent Liabilities
Deferred tax liabilities - net (Note 18)
Lease liability - net of current portion (Note 19)
Retirement liability (Note 17)
Other noncurrent liability (Note 12)
Total Noncurrent Liabilities
TOTAL LIABILITIES
395,568,329
165,000,813
226,530,163
13,004,975
800,104,280
1,557,213,509
410,250,106
179,142,644
191,361,485
11,106,821
791,861,056
1,554,163,705
372,414,400
664,056
372,414,400
664,056
1,076,000,000
537,759,867
2,655,373,698
(111,566,649)
(323,947)
2,042,246
4,532,363,671
740,000,000
721,203,044
2,655,373,698
(63,939,002)
(331,939)
2,042,246
4,427,426,503
5,626,221
4,537,989,892
6,901,817
4,434,328,320
=6,095,203,401
P
=5,988,492,025
P
TOTAL ASSETS
Equity
Equity Attributable to Equity Holders of the University
Capital stock (Note 13)
Additional paid-in capital
Retained earnings (Note 13)
Appropriated
Unappropriated
Revaluation increment on land - net (Notes 9 and 25)
Remeasurement loss on retirement obligation (Note 17)
Revaluation reserve on financial assets at FVOCI (Note 11)
Effect of transactions with non-controlling interest (Note 13)
Equity Attributable to Non-controlling Interests in
Consolidated Subsidiaries
Total Equity
TOTAL LIABILITIES AND EQUITY
See accompanying Notes to Consolidated Financial Statements.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
2021
Years Ended March 31
2020
2019
REVENUES FROM CONTRACTS WITH CUSTOMERS
Tuition and other school fees (Note 14)
P1,129,208,087 =
=
P1,314,456,816 =
P1,428,330,595
Miscellaneous fees (Notes 14 and 15)
10,751,081
37,215,695
44,945,262
1,139,959,168 1,351,672,511 1,473,275,857
OTHER REVENUES
Rental income (Notes 10 and 19)
Donation income (Note 9)
Dividend income (Note 11)
COSTS AND EXPENSES (Note 16)
Costs of services
General and administrative expenses
INCOME BEFORE OTHER INCOME
(EXPENSES) AND INCOME TAX
OTHER INCOME (EXPENSES)
Interest expense (Notes 19 and 20)
Interest income (Note 5)
Foreign currency exchange gains (losses) - net
Loss on retirement/disposal of assets (Note 9)
Fair value changes in investment property (Note 10)
Other income - net (Notes 5, 6 and 12)
INCOME BEFORE INCOME TAX
PROVISION FOR (BENEFIT FROM) INCOME TAX
(Note 18)
NET INCOME
Attributable to:
Equity holders of the University
Non-controlling interests
Basic/Diluted Earnings Per Share (Note 24)
2,301,090
−
−
2,301,090
19,586,895
15,433,000
−
35,019,895
17,390,887
7,091,000
3,226
24,485,113
874,468,390
135,968,740
1,010,437,130
1,067,852,428
236,727,702
1,304,580,130
1,106,573,806
201,975,992
1,308,549,798
131,823,128
82,112,276
189,211,172
(11,881,653)
3,565,698
(456,023)
(2,856)
–
27,758,181
18,983,347
(11,453,819)
4,717,701
130,921
(417,723)
–
778,376
(6,244,544)
150,806,475
75,867,732
193,905,674
8,933,149
6,793,918
=155,256,227
P
=
P66,934,583
=
P187,111,756
=152,556,823
P
2,699,404
=155,256,227
P
=
P62,346,136
4,588,447
=
P66,934,583
=
P184,163,109
2,948,647
=
P187,111,756
=0.41
P
=
P0.17
=
P0.49
(4,449,752)
–
5,258,829
(240,397)
(2,125,719)
(771,487)
2,573,276
4,694,502
See accompanying Notes to Consolidated Financial Statements.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
2021
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS)
Items not to be reclassified to profit or loss
Remeasurement loss on retirement obligation (Note 17)
Income tax effect (Note 18)
Change in revaluation reserve on financial assets at
FVOCI (Note 11)
Revaluation increment on land
Income tax effect (Note 18)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
TOTAL COMPREHENSIVE INCOME
Attributable to:
Equity holders of the University
Non-controlling interests
=155,256,227
P
Years Ended March 31
2020
=
P66,934,583
2019
=
P187,111,756
(52,919,608)
5,291,961
(47,627,647)
(7,748,166)
774,817
(6,973,349)
(89,593,541)
8,959,354
(80,634,187)
7,992
−
−
−
(47,619,655)
(2,880)
(23,040)
− 1,450,411,919
−
(145,041,192)
− 1,305,370,727
(6,976,229) 1,224,713,500
=107,636,572
P
=
P59,958,354 =
P1,411,825,256
=104,937,168
P
2,699,404
=107,636,572
P
=
P55,369,907 =
P1,408,876,609
4,588,447
2,948,647
=
P59,958,354 =
P1,411,825,256
See accompanying Notes to Consolidated Financial Statements.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED MARCH 31, 2021, 2020 and 2019
Capital Stock
(Note 13)
Balances at
March 31, 2018
Net income
Other comprehensive
income (loss)
Cash dividends
Balances at
March 31, 2019
Balances at
March 31, 2019
Net income
Other comprehensive loss
Cash dividends
Acquisition of
non-controlling interest
Expiration of appropriation
Appropriation for business
expansion
Balances at
March 31, 2020
Balances at
March 31, 2021
Net income
Other comprehensive loss
Cash dividends
Appropriation for business
expansion
Balances at
March 31, 2021
=
P372,414,400
−
Equity Attributable to Equity Holders of the University
Remeasurement
Revaluation
Gain (Loss) on Revaluation Reserve on
Effect of
Financial assets at transactions with
Increment
Additional
Retirement
Retained
Earnings
(Note
13)
FVOCI
on Land - net
Paid-in
non-controlling
Obligation
Capital Appropriated Unappropriated (Notes 9 and 18) (Notes 17 and 18)
(Note 11)
interest
=
P− P
= 3,110,103,501
−
184,163,109
Total Equity
=
P367,659,559
184,163,109
=
P1,350,002,971
−
−
−
−
(74,482,880)
1,305,370,727
−
(80,634,187)
−
(23,040)
−
=
P372,414,400
=
P664,056 P
= 996,000,000
=
P477,339,788
P
= 2,655,373,698
(P
= 56,965,653)
(P
= 329,059)
=
P− P
= 4,444,497,230
=
P6,355,616 =
P4,450,852,846
=
P372,414,400
−
−
−
=
P664,056 P
= 996,000,000
−
−
–
−
–
−
=
P477,339,788
62,346,136
−
(74,482,880)
P
= 2,655,373,698
−
−
−
(P
= 56,965,653)
−
(6,973,349)
−
(P
= 329,059)
−
(2,880)
−
=
P− P
= 4,444,497,230
−
62,346,136
−
(6,976,229)
−
(74,482,880)
=
P6,355,616 =
P4,450,852,846
4,588,447
66,934,583
−
(6,976,229)
(1,500,000)
(75,982,880)
–
−
(P
= 306,019)
−
Total
=
P664,056 =
P996,000,000
−
−
−
−
=
P23,668,534
−
Equity
Attributable to
Non-controlling
Interests in
Consolidated
Subsidiaries
−
−
=
P5,031,969 =
P3,115,135,470
2,948,647
187,111,756
1,224,713,500
(74,482,880)
−
−
–
–
−
(336,000,000)
−
336,000,000
−
−
−
−
−
−
2,042,246
−
2,042,246
−
−
–
80,000,000
(80,000,000)
−
−
−
−
−
−
(1,625,000)
(2,542,246)
−
−
1,224,713,500
(76,107,880)
(500,000)
−
−
=
P372,414,400
=
P664,056 P
= 740,000,000
=
P721,203,044
P
= 2,655,373,698
(P
= 63,939,002)
(P
= 331,939)
=
P2,042,246 =
P4,427,426,503
=
P6,901,817 =
P4,434,328,320
=
P372,414,400
−
−
−
=
P664,056 P
= 740,000,000
−
−
–
−
–
−
=
P721,203,044
152,556,823
−
P
= 2,655,373,698
−
−
−
(P
= 63,939,002)
−
(47,627,647)
−
(P
= 331,939)
−
7,992
−
=
P2,042,246 =
P4,427,426,503
−
152,556,823
−
(47,619,655)
−
=
P6,901,817 =
P4,434,328,320
2,699,404
155,256,227
−
(47,619,655)
(3,975,000)
(3,975,000)
−
=
P372,414,400
–
336,000,000
=
P664,056 =
P1,076,000,000
(336,000,000)
=
P537,759,867
−
P
= 2,655,373,698
−
(P
= 111,566,649)
−
(P
= 323,947)
−
−
=
P2,042,246 =
P4,532,363,671
−
−
=
P5,626,221 =
P4,537,989,892
See accompanying Notes to Consolidated Financial Statements.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
2021
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
Depreciation and amortization (Notes 9, 11, 16 and 19)
Movement in retirement liability (Note 17)
Interest expense (Notes 19 and 20)
Interest income (Note 5)
Unrealized foreign exchange losses (gains) - net
Loss on retirement/disposal of assets (Note 9)
Donation income (Note 9)
Fair value adjustment in investment property (Note 10)
Operating income before changes in operating assets and
liabilities
Changes in operating assets and liabilities:
Decrease (increase) in:
Tuition and other receivables
Inventories
Other current assets
Increase (decrease) in:
Accounts payable and other current liabilities
Deferred revenue
Net cash generated from operations
Income taxes paid
Interest received
Interest paid
Net cash from operating activities
=150,806,475
P
Years Ended March 31
2020
=75,867,732
P
2019
=193,905,674
P
108,836,616
(17,750,930)
11,881,653
(3,565,698)
456,023
2,856
–
–
115,951,592
24,001,785
11,453,819
(4,717,701)
(130,921)
417,723
(15,433,000)
−
94,214,963
(14,580,797)
−
(5,258,829)
240,397
2,125,719
(7,091,000)
771,487
250,666,995
207,411,029
264,327,614
(22,900,711)
(1,193,042)
(15,086,835)
(199,652,312)
495,978
(4,446,697)
(1,504,456)
(933,309)
(10,922,293)
(25,336,732)
26,483,472
212,633,147
(11,940,047)
3,677,991
(1,240,768)
203,130,323
178,896,844
62,471,635
245,176,477
(7,355,267)
4,961,403
(73,540)
242,709,073
29,686,914
–
280,654,470
(16,056,361)
4,886,955
–
269,485,064
CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisitions of:
Property and equipment (Note 9)
Software cost (Note 11)
Decrease (increase) in other noncurrent assets
Proceeds from sale of property and equipment (Note 9)
Payment for additions to land (Note 9)
Net cash used in investing activities
(18,039,727)
(105,000)
1,454,685
–
–
(16,690,042)
(121,508,304)
(105,000)
14,094,885
76,655
–
(107,441,764)
(168,250,269)
(105,000)
2,051,761
367,201
(1,174,791)
(167,111,098)
CASH FLOWS USED IN FINANCING ACTIVITIES
Payments of leases (Notes 19 and 27)
Payments of cash dividends (Note 27)
Net cash used in financing activities
(24,000,000)
(715,217)
(24,715,217)
(24,000,000)
(74,803,640)
(98,803,640)
–
(79,319,240)
(79,319,240)
EFFECT OF FOREIGN CURRENCY RATE CHANGES ON
CASH AND CASH EQUIVALENTS
(456,023)
130,921
(240,397)
NET INCREASE IN CASH AND CASH EQUIVALENTS
161,269,041
36,594,590
22,814,329
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
349,589,928
312,995,338
290,181,009
CASH AND CASH EQUIVALENTS
AT END OF YEAR (Note 5)
=510,858,969
P
=349,589,928
P
=312,995,338
P
See accompanying Notes to Consolidated Financial Statements.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
The consolidated financial statements include the financial statements of Centro Escolar
University (the “University”) and the following subsidiaries (collectively referred to as the
“Group”):
Subsidiary
Centro Escolar University Hospital, Inc.
(the “Hospital” or CEUHI)
Centro Escolar Las Piñas, Inc. (CELPI)
(formerly Las Piñas College [LPC])
Centro Escolar Integrated School, Inc. (CE-IS)
Percentage of Ownership
2021
2020
2019
100.00%
100.00%
100.00%
99.90%
99.90%
99.90%
94.00%
94.00%
90.00%
The University, a publicly listed entity, was organized in the Philippines on June 3, 1907 to
establish, maintain and operate an educational institution or institutions for the instruction and
training of the youth in all branches of the arts and sciences, offering classes in tertiary level.
In accordance with the Commission on Higher Education (CHED) Memorandum Order No. 32,
the University’s Mendiola and Makati campuses were granted autonomous status to be in force
and in effect for five years from November 15, 2007 to November 14, 2012 per Resolution Nos.
087-2012 and 148-2012. Private Higher Education Institutions (HEIs) which were granted with
autonomous status in 2007 to 2009 and deregulated status in 2009 and 2010 shall retain their
respective status until December 31, 2015 by virtue of CHED Memorandum Order No. 21, series
of 2015. The CHED extended the autonomous status of these two campuses for two times until
May 31, 2021. The CHED further extended the autonomous status of these two campuses until
May 31, 2023 by virtue of CHED Memorandum Order No. 07 series of 2021 issued on
April 30, 2021.
The University’s Malolos campus was granted autonomous status for a period of five years
effective November 15, 2009 to November 14, 2014 per Resolution Nos. 087-2012 and 148-2012.
Such autonomous status was extended until December 31, 2015 by virtue of CHED Memorandum
Order No. 21, series of 2015. The CHED extended the autonomous status of the University’s
Malolos campus for two times until May 31, 2021. The autonomous status of the University’s
Malolos campus is also further extended until May 31, 2023 by virtue of CHED Memorandum
Order No. 07 series of 2021 issued on April 30, 2021.
Under this autonomous status, the University is free from monitoring and evaluation of activities
of the CHED and has the privilege to determine and prescribe curricular programs, among other
benefits, as listed in the memorandum order. The three general criteria used by the CHED for the
selection and identification of institutions which shall receive autonomous status are as follows:
a. Institutions established as centers of excellence or centers of development and/or with
Federation of Accrediting Agencies of the Philippines Level III Accredited programs;
b. With outstanding overall performance of graduates in the government licensure examinations;
and
c. With long tradition of integrity and untarnished reputation.
The registered principal office of the University is at 9 Mendiola Street, San Miguel, Manila.
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The University incorporated the Hospital on June 10, 2008. The primary purpose of the Hospital
is to establish, maintain and operate a hospital, medical and clinical laboratories and such other
facilities that shall provide healthcare or any method of treatment for illnesses or abnormal
physical or mental health in accordance with advancements in modern medicine and to provide
education and training facilities in the furtherance of the health-related professions. The registered
principal office of the Hospital is at 103 Esteban corner Legaspi Streets, Legaspi Village, Makati
City. In January 2016, the Hospital entered into an agreement with Hemotek Renal Center
(Hemotek), a dialysis clinic, for the former to provide laboratory examinations to Hemotek
patients. As at March 31, 2021, the Hospital is operating nine Renal Centers, one of which is
operated by the Hospital starting the first quarter of the fiscal year 2020.
CE-IS was incorporated on July 24, 2013 and is a learning institution which offers pre-school,
primary and secondary education. The principal place of business of CE-IS is located at
Km 44 MacArthur Highway, Longos, Malolos City. On December 31, 2019, the University
purchased additional 2,000 shares of CE-IS increasing its ownership to 94%.
CELPI was incorporated on June 1, 1975 and is primarily engaged as an educational institution
offering a full range of programs from Kindergarten to Graduate school. The principal place of
business of CELPI is located at Dr. Faustino Uy Avenue, Pillar Village, Las Piñas City.
The consolidated financial statements were approved and authorized for issuance by the
University’s BOD on July 28, 2021.
Change in Academic Year
The University implemented a change in the academic year (i.e., from June ending March to
August ending May). This started in August 2019 and was reported under this fiscal year ended
March 31, 2020. This change in the academic year had an effect on the net income reported for
fiscal year 2020 due to the non-inclusion of the April and May 2020 realized tuition and other
fees, as well as related expenses, which was reported this fiscal year March 31, 2021.
2. Summary of Significant Accounting and Financial Reporting Policies
Basis of Preparation
The consolidated financial statements have been prepared on a historical cost basis, except for
land classified under ‘Property and equipment’ which is measured at revalued amount, and
financial assets at fair value through other comprehensive income (FVOCI) and equity
investments included under ‘Other noncurrent assets’ and investment property which are measured
at fair value.
The consolidated financial statements are presented in Philippine Peso (P
= or Peso), which is also
the Group’s functional currency. All values are rounded to the nearest Peso, unless otherwise
stated.
Statement of Compliance
The consolidated financial statements have been prepared in compliance with Philippine Financial
Reporting Standards (PFRSs).
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Presentation of Consolidated Financial Statements
The Group presents its assets and liabilities in the consolidated statement of financial position
based on current/noncurrent classification.
An asset is current when it is:
 Expected to be realized or intended to be sold or consumed in the normal operating cycle;
 Held primarily for trading;
 Expected to be realized within 12 months after the statement of financial position date; or
 Cash or cash equivalent, unless restricted from being exchanged or used to settle a liability for
at least 12 months after the statement of financial position date.
All other assets are classified as noncurrent.
A liability is current when:
 It is expected to be settled in the normal operating cycle;
 It is held primarily for trading;
 It is due to be settled within 12 months after the statement of financial position date; or
 There is no unconditional right to defer the settlement of the liability for at least 12 months
after the statement of financial position date.
All other liabilities are classified as noncurrent.
Deferred tax assets and liabilities are classified as noncurrent.
Basis of Consolidation
The consolidated financial statements comprise the financial statements of the University and its
subsidiaries. Control is achieved when the University is exposed, or has rights to variable returns
from its involvement with the investee and has the ability to affect those returns through its power
over the investee. Specifically, the University controls an investee if, and only if, the University
has:
 Power over the investee (that is, existing rights that give it the current ability to direct the
relevant activities of the investee);
 Exposure, or rights, to variable returns from its involvement with the investee; and
 The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this
presumption and when the University has less than a majority of the voting or similar rights of an
investee, the University considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
 The contractual arrangement with the other vote holders of the investee;
 Rights arising from other contractual arrangements; and
 The University’s voting rights and potential voting rights.
The University reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control. Consolidation of a
subsidiary begins when the University obtains control over the subsidiary and ceases when the
University loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated statement of
comprehensive income from the date the University gains control until the date the University
ceases to control the subsidiary.
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When necessary, adjustments are made to the financial statements of subsidiaries to align their
accounting policies with the University’s accounting policies. All intra-group assets, liabilities,
equity, income, expenses and cash flows relating to transactions between entities in the Group are
eliminated in full on consolidation.
The financial statements of the subsidiaries were prepared for the same reporting years as the
Group which were presented as at and for the years ended March 31, 2021 and 2020 and using
consistent accounting principles and policies except for CE-IS. CE-IS prepared its financial
statements as at December 31, 2020 and 2019 in accordance with PFRS. For consolidation
purposes, adjustments to the financial statements of CE-IS are recorded to align with the reporting
year of the University.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. In such circumstances, the carrying amount of the controlling and noncontrolling interests are adjusted by the Group to reflect the changes in its relative interests in the
subsidiary. Any difference between the amount by which the non-controlling interests are
adjusted and the fair value of the consideration paid or received is recognized directly in equity
and attributed to the owners of the University.
When a change in ownership interest in a subsidiary occurs, which results in loss of control over
the subsidiary, the University:
 Derecognizes the assets (including goodwill) and liabilities of the subsidiary;
 Derecognizes the carrying amount of any non-controlling interests;
 Derecognizes the cumulative translation differences recorded in equity;
 Derecognizes the other comprehensive income (OCI) and recycle the same to the profit or loss
to retained earnings;
 Recognizes the fair value of the consideration received;
 Recognizes the fair value of any investment retained; and
 Recognizes any surplus or deficit in the consolidated statement of income.
Non-controlling Interests
Non-controlling interests represent the portion of profit or loss and the net assets not held by the
University and are presented separately in the consolidated statement of income, consolidated
statement of comprehensive income and within equity in the consolidated statement of financial
position, separately from equity attributable to the equity holders of the University. Transactions
with non-controlling interest are accounted for using the equity concept method, whereby the
difference between the consideration and the book value of the share of the net assets acquired is
recognized as an equity transaction. Any losses applicable to the non-controlling interests are
allocated against the interests of the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
Changes in Accounting Policies and Disclosures
The accounting policies adopted are consistent with those of the previous financial year, except
that the Group has adopted the following new accounting pronouncements starting April 1, 2020.
Adoption of these pronouncements did not have any significant impact on the Group’s financial
position or performance.


Amendments to PFRS 3, Business Combinations, Definition of a Business
Amendments to PFRS 7, Financial Instruments: Disclosures and PFRS 9, Financial
Instruments, Interest Rate Benchmark Reform
*SGVFS160539*
-5


Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting
Policies, Changes in Accounting Estimates and Errors, Definition of Material
Conceptual Framework for Financial Reporting issued on March 29, 2018
Amendments to PFRS 16, COVID-19-related Rent Concessions
Foreign Currency Translation
Transactions denominated in foreign currencies are recorded in Peso based on the exchange rates
prevailing at the transaction dates. Foreign currency-denominated monetary assets and liabilities
are translated in Peso based on the Bankers’ Association of the Philippines closing rate prevailing
at the reporting date in 2021 and 2020, respectively. Foreign exchange differences between rate at
transaction date and rate at settlement date or reporting date of foreign currency-denominated
monetary assets or liabilities are credited to or charged against profit or loss in the period in which
the rates changed. Non-monetary items that are measured at historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
 In the principal market for the asset or liability; or
 In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a nonfinancial asset takes into account a market participant’s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
 Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
 Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.
 Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognized in the consolidated financial statements on a recurring
basis, the Group determines whether transfers have occurred between Levels in the hierarchy by
reassessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of reporting date.
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For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks and the level within the fair value hierarchy as
explained above (see Note 25).
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term deposits which are
highly liquid investments readily convertible to known amounts of cash with original maturities of
three months or less from dates of placements and are subject to insignificant risks of changes in
value. Cash and cash equivalents are carried at face value in the consolidated statement of
financial position.
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, and subsequently measured at amortized cost,
at FVOCI and at fair value through profit or loss (FVTPL).
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them. With
the exception of trade receivables that do not contain significant financing component or for which
the Group has applied the practical expedient, the Group initially measures a financial asset at fair
value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant financing component or which the Group has
applied the practical expedient are measured at transaction price determined under PFRS 15,
Revenue from Contracts with Customers.
In order for a financial asset to be classified and measured at amortized cost or FVOCI, it needs to
give rise to cash flows that are solely payments of principal and interest (SPPI) on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial
assets to generate cash flows. The business model determines whether cash flows will result from
collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognized on the trade
date, i.e., the date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
 Financial assets at amortized cost (debt instruments)
 Financial assets at FVOCI with recycling of cumulative gains and losses (debt instruments)
 Financial assets at FVOCI without recycling (equity instruments)
 Financial assets at FVTPL (debt and equity instruments)
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Financial assets at amortized cost (debt instruments)
This category is most relevant to the Group. The Group measures financial assets at amortized
cost if both of the following conditions are met:
 The financial asset is held within a business model with the objective to hold financial assets
in order to collect contractual cash flows; and
 The contractual terms of the financial asset give rise on specified dates to cash flows that are
closely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR)
method and are subject to impairment. Gains and losses are recognized in the parent company
statements of income when the asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost includes cash in banks and short-term deposits,
tuition fee and other receivables and refundable security deposits.
Financial assets at FVOCI (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as
equity investments designated at FVOCI when they meet the definition of equity under PAS 32,
Financial instruments: Presentation, and are not held for trading. The classification is determined
on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to consolidated statement of income.
Dividends are recognized as income in the consolidated statements of income when the right of
payment has been established, except when the Group benefits from such proceeds as a recovery
of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at FVOCI are not subject to impairment assessment.
The Group elected to classify irrevocably its investments in quoted equity instruments under this
category.
Derecognition
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when, and only when:
 the rights to receive cash flows from the asset expires;
 the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third party under a 'pass-through 'arrangement;
 the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the or
asset.
Modification of financial assets
The Group derecognizes a financial asset when the terms and conditions have been renegotiated to
the extent that, substantially, it becomes a new asset, with the difference between its carrying
amount and the fair value of the new asset recognized as a derecognition gain or loss in profit or
loss, to the extent that an impairment loss has not already been recorded.
The Group considers both qualitative and quantitative factors in assessing whether a modification
of financial asset is substantial or not. When assessing whether a modification is substantial, the
Group considers the following factors in the next page, among others:
*SGVFS160539*
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


Change in currency
Introduction of an equity feature
Change in counterparty
If the modification results in the asset no longer considered “solely payment for principal and
interest”
The Group also performs a quantitative assessment similar to that being performed for
modification of financial liabilities. In performing the quantitative assessment, the Group
considers the new terms of a financial asset to be substantially different if the present value of the
cash flows under the new terms, including any fees paid net of any fees received and discounted
using the original effective interest rate, is at least 10% different from the present value of the
remaining cash flows of the original financial asset.
When the contractual cash flows of a financial asset are renegotiated or otherwise modified and
the renegotiation or modification does not result in the derecognition of that financial asset, the
Group recalculates the gross carrying amount of the financial asset as the present value of the
renegotiated or modified contractual cash flows discounted at the original EIR (or credit-adjusted
EIR for purchased or originated credit-impaired financial assets) and recognizes a modification
gain or loss in the statement of income.
When the modification of a financial asset results in the derecognition of the existing financial
asset and the subsequent recognition of a new financial asset, the modified asset is considered a
'new' financial asset. Accordingly, the date of the modification shall be treated as the date of initial
recognition of that financial asset when applying the impairment requirements to the modified
financial asset. The newly recognized financial asset is classified as Stage 1 for ECL measurement
purposes, unless the new financial asset is deemed to be originated as credit impaired (POCI).
Impairment of financial assets
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not
held at FVTPL. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted
at an approximation of the original effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the 12 months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a
loss allowance is required for credit losses expected over the remaining life of the exposure,
irrespective of timing of the default (a lifetime ECL).
The Group’s debt instruments at amortized cost comprise of cash and cash equivalents and
refundable security deposits that are considered to have low credit risk. Hence, it is the Group’s
policy to measure ECL on such instrument on a 12-month basis applying the low credit risk
simplification and based on the PD which is publicly available. However, when there has been a
significant increase in credit risk since origination, the allowance will be based on the lifetime
ECL. The Group uses external credit ratings both to determine whether the debt instrument has
significantly increased in credit risk and to estimate ECL.
For tuition fee receivables, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance
*SGVFS160539*
-9-
based on lifetime ECLs at each reporting date. The Group has established a provision matrix that
is based on its historical credit loss experience, adjusted for forward-looking factors specific to
debtors and the economic environment.
The Group considers a financial asset in default when contractual payments are past due.
However, in certain cases, the Group may also consider a financial asset to be in default when
internal or external information indicates that the Group is unlikely to receive the outstanding
contractual cash flows in full before considering any credit enhancements held by the Group. A
financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and
borrowings, other financial liabilities carried at amortized cost, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.
The Group’s financial liabilities include accounts payable and other current liabilities (excluding
contract liabilities and statutory payables), dividends payable and lease liability.
Subsequent measurement
Other financial liabilities carried at amortized cost
These are issued financial instruments or their components, which are not designated as at FVTPL
and where the substance of the contractual arrangement results in the Group having an obligation
either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than
by the exchange of a fixed amount of cash or another financial asset for a fixed number of its own
equity shares. The components of issued financial instruments that contain both liability and
equity elements are accounted for separately, with the equity component being assigned the
residual amount after deducting from the instrument as a whole the amount separately determined
as the fair value of the liability component on the date of issue.
After initial measurement, financial liabilities not qualified and not designated as at FVTPL are
subsequently measured at amortized cost using the effective interest method. Amortized cost is
calculated by taking into account any discount or premium on the issuance and fees that are an
integral part of the effective interest rate.
This accounting policy applies primarily to the Group’s accounts payable and other current
liabilities (excluding contract liabilities and statutory payables), dividends payable and lease
liability.
Derecognition
A financial liability (or a part of a financial liability) is derecognized when the obligation under
the liability is discharged, cancelled or has expired. Where an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an
existing liability or a part of it are substantially modified, such an exchange or modification is
treated as a derecognition of the original financial liability and the recognition of a new financial
liability, and the difference in the respective carrying amounts is recognized in the statement of
income.
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Exchange or modification of financial liabilities
The Group considers both qualitative and quantitative factors in assessing whether a modification
of financial liabilities is substantial or not. The terms are considered substantially different if the
present value of the cash flows under the new terms, including any fees paid net of any fees
received and discounted using the original effective interest rate, is at least 10% different from the
present value of the remaining cash flows of the original financial liability. However, under
certain circumstances, modification or exchange of a financial liability may still be considered
substantial, even where the present value of the cash flows under the new terms is less than 10%
different from the present value of the remaining cash flows of the original financial liability.
There may be situations where the modification of the financial liability is so fundamental that
immediate derecognition of the original financial liability is appropriate (e.g., restructuring a
financial liability to include an embedded equity component).
When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new
liability. The difference between the carrying value of the original financial liability and the fair
value of the new liability is recognized in profit or loss.
When the exchange or modification of the existing financial liability is not considered as
substantial, the Group recalculates the gross carrying amount of the financial liability as the
present value of the renegotiated or modified contractual cash flows discounted at the original EIR
and recognizes a modification gain or loss in profit or loss.
If modification of terms is accounted for as an extinguishment, any costs or fees incurred are
recognized as part of the gain or loss on the extinguishment. If the modification is not accounted
for as an extinguishment, any costs or fees incurred adjust the carrying amount of the financial
instrument and are amortized over the remaining term of the modified financial instrument.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the
consolidated statement of financial position if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, to realize the assets and
settle the liabilities simultaneously.
Inventories
Inventories are valued at the lower of cost and net realizable value (NRV). NRV is the estimated
selling price in the ordinary course of business, less marketing and distribution costs. The cost
includes the invoice amount, freight in and other incidental costs and is determined using the firstin, first-out method.
Property and Equipment
Property and equipment, except for land, is carried at cost, less accumulated depreciation and
amortization and accumulated allowance for impairment losses. The initial cost of property and
equipment comprises its purchase price, including import duties, taxes and any directly
attributable costs of bringing the assets to their working condition and location for their intended
use.
Land is carried at revalued amount. Valuations are performed with sufficient regularity to ensure
that the fair value of a revalued asset does not differ materially from its carrying amount.
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Any revaluation surplus, net of tax effect, is presented in OCI, except to the extent that it reverses
a revaluation decrease of the same asset previously recognized in the consolidated statement of
income, in which case, the increase is recognized in the consolidated statement of income. A
revaluation decrease is recognized in the consolidated statement of income, except to the extent
that it offsets an existing surplus on the same asset presented in OCI. Upon disposal, any
revaluation surplus, net of tax effect, relating to the land being sold is transferred to retained
earnings.
Construction in progress, included in property and equipment, is stated at cost.
Expenditures incurred after the property and equipment have been put into operations, such as
repairs and maintenance and overhaul costs, are normally charged against the consolidated
statement of income in the period in which the costs are incurred. In situations where it can be
clearly demonstrated that the expenditures have resulted in an increase in the future economic
benefits expected to be obtained from the use of an item of property and equipment beyond its
originally assessed standard of performance, the expenditures are capitalized as an additional cost
of property and equipment.
The useful life and depreciation and amortization method are reviewed at least every reporting
date and adjusted prospectively, if appropriate.
Depreciation of property and equipment is computed on a straight-line basis over the following
estimated useful lives of the assets:
Land improvements
Building
Furniture, transportation, auxiliary
and library equipment
Library books
Leasehold improvements
Number of Years
10
50
5
10
10 or lease term
whichever is shorter
Construction in progress is not depreciated until such time that the relevant assets are completed
and become available for intended use.
Fully depreciated property and equipment are retained in the accounts until these are no longer
used and no further depreciation and amortization is charged to the consolidated statement of
income.
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising from the derecognition of
the asset by sale (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) and by write off, is recognized under “Miscellaneous fees” and “Loss on
retirement/disposal of assets,” respectively, in the consolidated statement of income in the year the
asset is derecognized.
Investment Property
Investment property is measured initially at cost, including transaction costs. An investment
property acquired through an exchange transaction is measured at fair value of the asset acquired,
unless the fair value of such an asset cannot be measured, in which case, the investment properties
acquired are measured at the carrying amount of the asset given up. Expenditures incurred after
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the investment properties have been put into operations, such as repairs and maintenance costs, are
normally charged to the consolidated statement of income in the year in which the costs are
incurred.
The investment property of the Group comprises of land being leased to a third party.
Subsequent to initial recognition, land is stated at fair value, which reflects the prevailing market
conditions at the end of reporting period. Gains and losses from changes in the fair value of the
land are recognized in the consolidated statement of income under “Fair value changes in
investment property.”
Transfers are made to or from investment property only when there is a change in use. For a
transfer from investment property to owner-occupied property, the cost and the carrying amount of
the property transferred do not change. If an owner-occupied property becomes an investment
property, the Group accounts for such property in accordance with the accounting policy on
property and equipment up to the date of change in use.
Investment property is derecognized when it has either been disposed of or when the investment
property is permanently withdrawn from use and no future benefit is expected from its disposal.
Business Combinations and Goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date fair
value and the amount of any non-controlling interest in the acquiree. For each business
combination, the acquirer elects whether to measure the non-controlling interest in the acquiree at
fair value or at the proportionate share in the recognized amounts of the acquiree’s identifiable net
assets. Acquisition-related costs incurred are expensed as incurred.
When the Group acquires a business, it assesses the financial assets and financial liabilities
assumed for appropriate classification and designation in accordance with the contractual terms,
economic circumstances and pertinent conditions as at the acquisition date. This includes the
separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, any previously held equity interest is remeasured
at its acquisition date fair value and any resulting gain or loss is recognized in the consolidated
statement of income.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at
the acquisition date. Subsequent changes to the fair value of the contingent consideration which is
deemed to be an asset or liability will be recognized in accordance with PAS 39 in the
consolidated statement of income. If the contingent consideration is classified as equity, it should
not be remeasured until it is finally settled within equity.
When the seller agrees to contractually indemnify the acquirer for the outcome of a contingency or
uncertainty related to a specific asset or liability, the acquirer recognizes an indemnification asset
with an equivalent amount deducted from the consideration transferred for the business
combination. Indemnification asset recognized at the acquisition date continues to be measured
on the same basis as the related indemnified item subject to collectability and contractual terms
until the asset is collected, sold, cancelled or expire in the post-combination period. The Group
measures the indemnification asset on the same basis as the related item, subject to any restrictions
in the contractual terms.
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Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognized for non-controlling interests, and any previous interest
held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net
assets acquired is in excess of the aggregate consideration transferred, the Group reassesses
whether it has correctly identified all of the assets acquired and all of the liabilities assumed and
reviews the procedures used to measure the amounts to be recognized at the acquisition date. If
the reassessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in the consolidated statement of income.
After initial recognition, goodwill is measured at cost, less any accumulated impairment losses.
For purposes of impairment testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group’s cash-generating unit (CGU), or group of CGU’s,
that are expected to benefit from the synergies of the combination, irrespective of whether other
assets or liabilities of the Group are assigned to those units or groups of units.
Each unit or group of units to which the goodwill is allocated should:
 Represent the lowest level within the Group at which the goodwill is monitored for internal
management purposes; and
 Not be larger than an operating segment determined in accordance with PFRS 8.
When goodwill has been allocated to a CGU and part of the operation within that unit is disposed
of, the goodwill allocated with disposed operation is included in the carrying amount of the
operation when determining the gain or loss on disposal. Goodwill disposed in these
circumstances is measured based on the relative values of the disposed operation.
Impairment of Nonfinancial Assets
An assessment is made at each reporting date whether there is any indication of impairment of
nonfinancial assets, or whether there is any indication that an impairment loss previously
recognized for an asset in prior years may no longer exists or may have decreased. If any such
indication exists, the asset’s recoverable amount is estimated. An asset’s recoverable amount is
calculated at the higher of the asset’s or CGU’s value-in-use or its fair value less cost to sell. The
recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets, in which case,
the recoverable amount is assessed as part of the CGU to which it belongs.
In assessing value-in-use, the estimated future cash flows are discounted to their present value
using pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset (or CGU). In determining fair value less cost to sell, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used.
An impairment loss is recognized only if the carrying amount of an asset (or CGU) exceeds its
recoverable amount. An impairment loss is charged against the consolidated statement of income
in the period in which it arises, unless the asset (or CGU) is carried at a revalued amount, in which
case, the impairment loss is charged against the revaluation increment of the said asset (or CGU).
A previously recognized impairment loss is reversed only if there has been a change in the
estimates used to determine the recoverable amount of an asset (or CGU), but not to an amount
higher than the carrying amount that would have been determined (net of any depreciation and
amortization) had no impairment loss been recognized for the asset (or CGU) in prior years. A
reversal of an impairment loss is credited to current consolidated statement of income, unless the
asset (or CGU) is carried at revalued amount, in which case, the reversal of the impairment loss is
credited to the revaluation increment of the said asset (or CGU).
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The following criteria are also applied in assessing impairment of specific assets:
Property and equipment and right-of-use asset
The carrying values of property and equipment and right-of-use asset are reviewed for impairment
when events or changes in circumstances indicate that the carrying values may not be recoverable.
If any such indication exists and when the carrying values exceed the estimated recoverable
amounts, the assets or CGUs are written down to their recoverable amounts.
Goodwill
Goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the CGU (or group
of CGUs) to which the goodwill relates. When the recoverable amount of the CGU (or group of
CGUs) is less than the carrying amount of the CGU (or group of CGUs) to which goodwill has
been allocated, an impairment loss is recognized immediately in the consolidated statement of
income. Impairment losses relating to goodwill cannot be reversed for subsequent increases in its
recoverable amount in future periods.
Other Assets
Advances to suppliers
Advances to suppliers, included under “Other current assets”, represent amounts paid to suppliers
for purchases not yet received as at the reporting date. This is subsequently reversed to an
expense account when the goods or services are received.
Prepayments
Prepayments, included under “Other current assets”, are initially measured at the amounts paid
and subsequently recognized as expense over the period in which the prepayments apply.
Creditable withholding tax (CWT) and prepaid taxes
CWT and prepaid taxes, included under “Other current assets”, pertains to the tax withheld at
source by the Group’s lessees and excess quarterly income tax payments. These are creditable
against its income tax liability.
Advances to contractors
Advances to contractors, included under “Other noncurrent assets”, represent amounts paid to
contractors for purchases not yet received as at the reporting date. This is subsequently reversed
to an asset account when the goods or services are received.
Software costs
Software cost, included under “Other noncurrent assets”, includes all software which are currently
used by the Group which is carried at cost, less accumulated amortization and accumulated
allowance for impairment losses.
Cost to fulfill the contract
Cost to fulfill the contract, included under “Other current assets”, are initially measured at
amounts paid and subsequently recognized as expense upon performance of the related services to
the students. The Group amortizes capitalized cost to fulfill a contract to “Expenses for
co-curricular activities” under “Cost of services”.
*SGVFS160539*
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Equity
Capital stock is measured at par value for all shares issued. When the University issues more than
one class of stock, a separate account is maintained for each class of stock and the number of
shares issued.
When the shares are sold at a premium, the difference between the proceeds and the par value is
credited to “Additional paid-in capital.” When shares are issued for a consideration other than
cash, the proceeds are measured by the fair value of the consideration received.
Retained earnings represent accumulated earnings of the Group less dividends declared.
Revenue from Contracts with Customers
Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group expects
to be entitled in exchange for those goods, excluding the related taxes. The Group assesses its
revenue arrangement against specific criteria in order to determine if it is acting as principal or agent.
The Group has concluded that it is acting as principal in its all of its revenue arrangements.
Tuition and other school fees, including income from other school services
Tuition and other school fees, including income from other school services except for the sale of
books and uniforms, are recognized over time as revenue over the corresponding school term
using output method (i.e., time lapsed over the service period such as semester or school year,
depending on the curriculum registered). Upon enrollment, students have the option to pay the
tuition and other school fees in full or in installment. Tuition and other fees, including income
from other school services except for the sale of books and uniforms, to be recognized in the
remaining months after statement of financial position date or next school term which are not yet
due for collection are deferred and is shown under “Deferred revenue” account in the statement of
financial position.
Contract Balances
Receivables
A receivable represents the Group’s right to an amount of consideration that is unconditional
(i.e., only the passage of time is required before payment of the consideration is due).
Contract liability
A contract liability is the obligation to transfer goods to a customer for which the Group has
received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Group transfers goods or services to the customer, a contract
liability is recognized when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognized as revenue when the Group performs the obligations under the
contract. The Group’s contract liabilities represent advance collections for culminating and
yearbook fees and for revenues expected to be earned until end of the academic year presented
under “Accounts payable and other current liabilities” and will be recognized as revenue when the
related services are rendered.
Other Revenues
Interest income
Interest income is recognized as the interest accrues taking into account the effective yield on the
asset.
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Rental income
Rental income arising from leased properties is accounted for on a straight-line basis over the
lease terms.
Donation income
Donation income is recognized as revenue when the right to receive, whether in money or in kind,
is established.
Dividend income
Dividend income is recognized when the right to receive the payment is established.
Expense Recognition
Expenses are recognized in the consolidated statement of income when a decrease in future
economic benefits related to a decrease in an asset or an increase in a liability has arisen that can
be measured reliably.
Expenses are recognized in the consolidated statement of income:
 On the basis of systematic and rational allocation procedures when economic benefits are
expected to arise over several accounting periods and the association can only be broadly or
indirectly determined; or
 Immediately when an expenditure produces no future economic benefits or when, and to the
extent that, future economic benefits do not qualify or cease to qualify, for recognition in the
consolidated statement of financial position as an asset.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in
the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in
connection with the borrowing of funds.
Retirement Benefits
The Group operates a defined benefit retirement plan which requires contribution to be made to a
separately administered fund.
The cost of providing benefits under the defined benefit retirement plan is actuarially determined
using the projected unit credit method.
Retirement expense comprises the following:
 Service cost; and
 Net interest on the retirement liability.
Service costs which include current service costs, past service costs and gains or losses on
non-routine settlements are recognized as expense in the consolidated statement of income. Past
service costs are recognized when plan amendment or curtailment occurs. These amounts are
calculated periodically by the independent qualified actuary.
Net interest on the retirement liability is the change during the period in the retirement liability
that arises from the passage of time which is determined by applying the discount rate based on
government bonds to the retirement liability. Net interest on the retirement liability is recognized
as an expense or income in the consolidated statement of income.
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Remeasurements comprising actuarial gains and losses, return on plan assets and any change in
the effect of the asset ceiling (excluding net interest on the retirement liability) are recognized
immediately in OCI in the period in which they arise. Remeasurements are not reclassified to the
consolidated statement of income in subsequent periods.
The retirement liability is the aggregate of the present value of defined benefit obligation at the
reporting date reduced by the fair value of plan assets, adjusted for any effect of limiting a net
retirement asset to the asset ceiling. The asset ceiling is the present value of any economic
benefits available in the form of refunds from the plan or reductions in future contributions to the
plan.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly
to the Group. The fair value of plan assets is based on market price information. When no market
price is available, the fair value of plan assets is estimated by discounting expected future cash
flows using a discount rate that reflects both the risk associated with the plan assets and the
maturity or expected disposal date of those assets (or, if they have no maturity, the expected
period until the settlement of the related obligations).
Income Taxes
Income tax on income or loss for the year comprises current and deferred tax. Income tax is
determined in accordance with Philippine tax laws. Income tax is recognized in the consolidated
statement of income, except to the extent that it relates to items recognized directly in equity, in
which case, the tax effect is recognized in the consolidated statement of comprehensive income.
Current tax
Current tax assets and current tax liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the tax authority. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted as at the statement of
financial position date.
Deferred tax
Deferred tax is provided or recognized, using the liability method, for all temporary differences
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the statement of financial position date.
Deferred tax assets are recognized for all deductible temporary differences and unused net
operating loss carryover (NOLCO). Deferred tax assets are recognized to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences
and NOLCO can be utilized, except:
a. When the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss; or
b. In respect of deductible temporary differences associated with investments in subsidiaries,
deferred tax assets are recognized only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilized.
The carrying amount of deferred tax provided is based on the expected manner of realization or
settlement of the carrying amount of the assets and liabilities, using tax rates enacted or
substantively enacted at the reporting date.
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The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient future taxable profits will be available to allow
all or part of the deferred tax assets to be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
a. When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
b. In respect of taxable temporary differences associated with investments in subsidiaries, when
the timing of the reversal of the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
offset current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same tax authority.
Deferred income tax assets and liabilities are offset if a legally enforceable right to offset current
income tax against current income tax liabilities and the deferred income tax assets and liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities which intend to either settle current income tax liabilities and assets on a
net basis or to realize the assets and settle the liabilities simultaneously, on each future period in
which significant amounts of deferred income tax assets and liabilities are expected to be settled or
recovered. Subsidiaries operating in the Philippines file income tax returns on an individual basis.
Thus, the deferred tax assets and deferred tax liabilities are offset on a per entity basis.
Leases
Group as lessor
Leases where the Group does not transfer all the risks and benefits of ownership of the assets are
classified as operating leases. Initial direct costs incurred in negotiating operating leases are added
to the carrying amount of the leased asset and are recognized over the lease term on the same basis
as the rental income. Operating lease payments are recognized in the consolidated statement of
income. Any rental payments are accounted for on a straight-line basis over the lease term. Rental
income in 2021 and 2020 is presented as a separate line item in the consolidated statement of
income while rental income in 2019 is presented under “Miscellaneous income”. Contingent
rentals are recognized as revenue in the period in which they are earned.
Group as a lessee
The Group assesses at contract inception whether a contract is, or contains, a lease (i.e., if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration).
The Group applies a single recognition and measurement approach for all leases, except for its
leases of low-value asset and short-term leases. The Group recognizes lease liability to make lease
payments and right-of-use asset representing the right to use the underlying asset.
Right-of-use asset
The Group recognizes right-of-use asset at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use asset is measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liability. The
cost of right-of-use asset includes the amount of lease liability recognized, initial direct costs
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incurred, and lease payments made at or before the commencement date less any lease incentives
received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognized right-of-use asset is depreciated on a straight-line basis over the
shorter of its estimated useful life and the lease term.
Right-of-use asset is subject to impairment. Refer to the accounting policies in section Impairment
of Nonfinancial Assets.
Lease liability
At the commencement date of the lease, the Group recognizes lease liability measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease incentives receivable, variable
lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Group and payments of penalties for terminating the
lease, if the lease term reflects the Group exercising the option to terminate.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate
at the lease commencement date if the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liability is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease
liability is remeasured if there is a modification, a change in the lease term, a change in the insubstance fixed lease payments or a change in the assessment to purchase the underlying asset.
Leases for low value assets and short-term leases
Payments for leases for low value assets and short-term leases and are recognized as “Rental” under “Cost
of services”.
Segment Reporting
The Group’s operating businesses are organized and managed separately according to the
geographic locations, designated as the Group’s campuses, with each segment representing a
strategic business unit that offers varying courses depending on demands of the market. Financial
information on business segments is presented in Note 21.
Basic and Diluted Earnings Per Share (EPS)
Basic EPS amounts are calculated by dividing net income by the weighted average number of
ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing net income attributable to common shareholders by the
weighted average number of common shares outstanding during the year adjusted for the effects
of any dilutive potential common shares.
Provisions
A provision is recognized only when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and, a reliable estimate can be made of the amount of the
obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability.
Contingencies
Contingent assets are not recognized in the consolidated financial statements but are disclosed in
the notes to consolidated financial statements when an inflow of economic benefits is probable.
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Contingent liabilities are not recognized in the consolidated financial statements but these are
disclosed in the notes to consolidated financial statements unless the possibility of an outflow of
resources embodying economic benefits is remote.
Events after Report Date
Post year-end events up to the date of approval of the BOD of the consolidated financial
statements that provide additional information about the Group’s position reporting date (adjusting
events) are reflected in the consolidated financial statements, if any. Post year-end events that are
not adjusting events are disclosed in the notes to consolidated financial statements when material
3. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the consolidated financial statements in compliance with PFRSs requires
management to make judgments and estimates that affect the amounts reported in the consolidated
financial statements and accompanying notes. Future events may occur which can cause the
assumptions used in arriving at those estimates to change. The effects of any changes in estimates
will be reflected in the consolidated financial statements as they become reasonably determinable.
Judgments and estimates are continuously evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
In the process of applying the Group’s accounting policies, management has made the judgments
below apart from those involving estimations, which have the most significant effect on the
amounts recognized in the consolidated financial statements:
Recognition of tuition and other fees over time
The Group determined that tuition and other fees, the major source of revenue of the Group, are to
be recognized over time using the output method on the basis of time lapsed over the service
period since it provides a faithful depiction of the Group’s performance in transferring control of
the services to the students. The fact that another entity would not need to re-perform the service
that the Group has provided to date demonstrates that the customer or the student simultaneously
receives and consumed the benefits of the Groups’ performance as it is performed.
Operating leases
 Group as lessor
The Group has entered into commercial property leases on its Mendiola, Malolos, Makati and
Las Piñas campuses. The Group has determined, based on an evaluation of the terms and
conditions of the arrangements (that is, the lease does not transfer ownership of the asset to the
lessee by the end of the lease term, the lessee has no option to purchase the asset at a price that
is expected to be sufficiently lower than the fair value at the date the option is exercisable, and
the lease term is not for the major part of the asset’s economic life), that it retains all the
significant risks and rewards of ownership of these properties. Thus, the leases are classified
as operating leases.
Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed in the next page.
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Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liability. The IBR is the rate of interest that the
Group would have to pay to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires
estimation when no observable rates are available or when they need to be adjusted to reflect the
terms and conditions of the lease. The Group estimates the IBR using observable inputs (such as
market interest rates) when available and is required to make certain entity-specific estimates
(such as the Group’s stand-alone credit rating).
The carrying value of the Group’s lease liability as at March 31, 2021 and 2020 is disclosed in
Note 19.
Estimation of allowance for expected credit losses
The Group uses the simplified approach in calculating ECLs for receivables. The provision rates
are based on days past due for groupings of various customer segments that have similar loss
patterns (i.e., by customer type).
The provision matrix is initially based on the Group’s historical observed default rates. The
Group calibrates the matrix to adjust the historical credit loss experience with forward-looking
information. For instance, if forecasted economic conditions are expected to deteriorate over the
next year which can lead to an increased number of defaults, the historical default rates are
adjusted. At every reporting date, the historical observed default rates are updated and changes in
forward-looking estimates are analyzed.
The segmentation of the Group’s receivable, identification and definition of default and the
assessment of the correlation between historically observed default rates, forecast economic
conditions and ECLs are significant estimates. The Group also applied weights to various
scenarios in the computation of the allowance for ECL as of March 31, 2021 and 2020 to include
the impact of coronavirus pandemic. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions. The Group’s historical credit loss experience
and forecast of economic conditions may also not be representative of the customer’s actual
default in the future.
The carrying values of tuition and other receivables and allowance for ECL as at March 31, 2021
and 2020 are disclosed in Note 6.
Determination of NRV of inventories
The Group’s estimates of the NRV of inventories are based on the most reliable evidence available
at the time the estimates are made and the amount at which the inventories are expected to be
realized. These estimates consider the fluctuations of price or cost directly relating to events
occurring after the end of the period to the extent that such events confirm conditions existing at
the reporting date. A new assessment is made of NRV in each subsequent period. When the
circumstances that previously caused inventories to be written down below cost no longer exist or
when there is a clear evidence of an increase in NRV because of changes in economic
circumstances, the amount of the write-down is reversed so that the new carrying amount is the
lower of the cost and the revised NRV.
No write-down of inventories was recognized in 2021 and 2020. The carrying value of inventories
of the Group is disclosed in Note 7.
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Estimation of useful lives of property and equipment
The useful lives of property and equipment are estimated based on the period over which these
assets are expected to be available for use. The estimated useful lives of property and equipment
are reviewed periodically and are updated if expectations differ from previous estimates due to
asset utilization, internal technical evaluation, technological and environmental changes and
anticipated use of the assets tempered by related industry benchmark information. It is possible
that future financial performance could be materially affected by changes in these estimates
brought about by changes in factors mentioned. Any reduction in the estimated useful lives of the
property and equipment would increase depreciation and amortization expense.
The estimated useful lives of property and equipment is discussed in Note 2 to the consolidated
financial statements. There is no change in the estimated useful lives of property and equipment as
of March 31, 2021 and 2020.
The carrying values of depreciable property and equipment (i.e., excluding land and construction
in progress) are disclosed in Note 9.
Impairment of property and equipment and right-of-use asset
The Group assesses at each reporting date whether there is any indication that its property and
equipment and right-of-use asset are impaired. Determining the fair value of these noncurrent
non-financial assets, which requires the determination of future cash flows expected to be
generated from the continued use and ultimate disposition of such assets, requires the Group to
make estimates and assumptions that can materially affect the consolidated financial statements.
Future events could cause management to conclude that these assets are impaired. Any resulting
impairment loss could have a material adverse impact on the Group’s financial position and
financial performance. The preparation of the estimated future cash flows involves significant
judgment and estimations. While management believes that the assumptions made are appropriate
and reasonable, significant changes in management assumptions may materially affect the
assessment of recoverable values and may lead to future additional impairment charges under
PFRS.
The Group’s market capitalization is lower as compared to its net book value is an impairment
indicator on the Group’s property and equipment as of March 31, 2021 and 2020. Hence, the
Group performed impairment analysis as of March 31, 2021 and 2020. The Group’s value-in-use
calculation involves significant management judgment in the use of assumptions, particularly
tuition fee rates, number of students, long-term growth rate and discount rate. The carrying values
of property and equipment are disclosed in Note 9. There are no impairment indicators on the
Group’s right-of-use asset as of March 31, 2021 and 2020. The carrying value of right-of-use asset
as of March 31, 2021 and 2020 is disclosed in Note 19.
As at March 31, 2021 and 2020, the recoverable amount of the CGU has been determined based
on the value-in-use calculation using cash flow projections from the five-year strategic plan for the
University. Tuition fee rates and number of students assumed to project revenues were based on
approved tuition fee increase and the University’s historical data and performance. The impact of
the coronavirus pandemic was also considered in the assessment made by incorporating it to the
cash flow projections based on the expected results of operations for FY 2020-2021.
The discount rate used for the computation of the net present value is the cost of the equity and
was determined by reference to comparable entities. In 2021 and 2020, the pre-tax discount rate
applied to cash flow projections is 10.58% and 10.30%, respectively, while the long-term growth
rate to project cash flows beyond the five-year period is nil.
*SGVFS160539*
- 23 -
Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. The Group’s
value-in-use calculation involves significant management judgment in the use of assumptions,
particularly the tuition fee rates (and the impact of coronavirus pandemic), number of students
(and the impact of coronavirus pandemic), long-term growth rate and the discount rate.
The carrying value of goodwill of the Group is disclosed in Note 4.
Revaluation of land
The fair value of the Group’s land at revalued amount was based on a third party appraisal with
effective date of valuation of March 31, 2019, using sales comparison approach. Based on
comparison of recent sale transactions or offerings of similar properties done by the Group as at
March 31, 2021, management assessed that there were no significant movements in the fair value
of the land from date of last valuation until March 31, 2021. Key assumptions used by the
independent appraiser are disclosed in Note 25.
The revalued amount of land included under “Property and equipment” and “Investment property”
in the consolidated statement of financial position is disclosed in Notes 9 and 10, respectively.
Retirement liability
The cost of the defined benefit retirement plan and the present value of defined benefit obligation
are determined using an actuarial valuation. The actuarial valuation involves making assumptions
about employee turnover rates, discount rates, prospective salary increases and mortality rate.
Due to the complexity of the actuarial valuation, the underlying assumptions and long-term nature
of this plan, such estimates are subject to significant uncertainty. All significant assumptions are
reviewed at each reporting date.
The assumed discount rates were determined using the market yields on Philippine government
bonds with terms consistent with the expected employee benefit payout as at the reporting date.
Future salary increases are assumed for all future years within the duration of the plan and take
into account the inflation, seniority, promotion, merit, productivity and other market factors.
Employee turnover rates are based on the probability of voluntary separation of service from the
University prior to their retirement date.
The present value of defined benefit obligation and details about the significant assumptions used
are disclosed in Note 17.
Recognition of deferred income taxes
Deferred tax assets are recognized for all deductible temporary differences and unused NOLCO to
the extent that it is probable that sufficient future taxable profits will be available against which
the deductible temporary differences and unused NOLCO can be utilized. Significant
management judgment is required to determine the amount of deferred tax assets that can be
recognized, based upon the likely timing and level of future taxable profits together with future tax
planning strategies.
Unrecognized deferred tax assets of the Group are disclosed in Note 18.
4. Business Combination
On August 24, 2015, the University entered into an agreement with the previous owners of CELPI
(the “Sellers”) to purchase their interest in CELPI shares, and real and other properties consisting
of parcels of land and buildings and improvements which are owned directly by the Sellers but are
used by CELPI.
*SGVFS160539*
- 24 -
Accordingly, the University obtained control of CELPI through the execution of the agreements
on September 1, 2015 as outlined below.
Amount
Deed of Absolute Sale for the purchase of parcels of land, buildings
and improvements
Deeds of Assignment for the purchase of CELPI shares representing
90% equity interest
=270,200,000
P
3,600,000
=273,800,000
P
It was also agreed that the University will pay the Sellers the amount of P
=7.34 million to liquidate
all liabilities of CELPI, including but not limited to, retirement/separation of all CELPI
employees. The acquisition provides the University the opportunity to expand its operations in the
Southern part of Metro Manila.
The fair values of the identifiable assets and liabilities of CELPI as at the date of acquisition is
shown below:
Fair value recognized on acquisition
Assets
Cash
Receivables
Property and equipment
Other assets
Liabilities
Accounts payable and accrued expenses
Advances from officers
Net liabilities
=108,234
P
10,000
836,314
6,650
961,198
197,496
2,870,473
3,067,969
(P
=2,106,771)
In addition to the above identifiable assets and liabilities, the Group recognized the fair value of
real and other properties acquired as a result of the business combination amounting to
=229.46 million and the related deferred tax asset of =
P
P4.07 million (see Note 18).
The fair values of land and buildings and improvements as at September 1, 2015 have been
determined based on the valuation done by a professionally qualified appraiser accredited by the
SEC. The fair values of these assets were derived based on sales comparison approach. Under
this approach, the fair value of the land was determined considering sales and listings of
comparable property in the same area as the land, also taking into account the economic
conditions prevailing at the time the valuation was made. The actual sales and listings regarded as
comparable are adjusted to account for differences in a property’s location, size and time element.
For buildings and improvements, the significant input considered in the valuation is the
reproduction cost, which is the estimated cost to create a virtual replica of the existing structure,
employing the same design and similar building materials.
The University has elected to measure the non-controlling interest in CELPI at their proportionate
share of CELPI’s net identifiable assets.
*SGVFS160539*
- 25 -
Goodwill from the acquisition is computed as follows:
Consideration transferred
Fair value of net liabilities assumed
Less:
Fair value of real and other properties acquired
Deferred tax asset on excess of acquisition cost over fair value of
real and other properties acquired
Indemnification asset
Goodwill
=281,140,000
P
2,106,771
(229,460,339)
(4,073,966)
(2,106,771)
=47,605,695
P
The goodwill arising from the acquisition can be attributed mainly to expected synergies and
increase in geographical presence and customer base.
The Sellers have contractually agreed to indemnify the University for all known liabilities until
March 31, 2016, and consequently, the University recognized indemnification asset of
=2.11 million at acquisition date.
P
Impairment Testing of Goodwill
As at March 31, 2021 and 2020, the carrying amount of goodwill amounted to =
P47.61 million.
Management assessed that no impairment losses need to be recognized in 2021 and 2020.
Key assumptions used in the value-in-use calculation
As at March 31, 2021 and 2020, the recoverable amount of the CGU has been determined based
on a value-in-use calculation using cash flow projections from the five-year strategic plan for
CELPI. Tuition fee rates and number of students assumed to project revenues were based on
externally available industry data and the Group’s historical data and performance. The discount
rate used for the computation of the net present value is the cost of equity and was determined by
reference to comparable entities. In 2021 and 2020, the pre-tax discount rate applied to cash flow
projections is 10.58% and 10.30%, respectively, while the long-term growth rate to project cash
flows beyond the five-year period is nil for both years.
Sensitivity to changes in assumptions
Management believes that no reasonably possible change in any of the above key assumptions
would cause the carrying value of the goodwill to materially exceed its recoverable amount.
5. Cash and Cash Equivalents
This account consists of:
Cash on hand and in banks (Note 22)
Short-term deposits (Note 22)
2021
P
=267,244,891
243,614,078
P
=510,858,969
2020
=167,042,053
P
182,547,875
=349,589,928
P
Cash in banks earned interest rates ranging from 0.05% to 0.375% in 2021, 0.10% to 0.375% in
2020, and 0.10% to 0.50% in 20219. Short-term deposits are made for varying periods of up to
three months depending on the immediate cash requirements of the Group and earned interest
rates ranging from 0.30% to 2.80% in 2021, 1.50% to 5.75% in 2020 and 1.25% to 5.75% in
*SGVFS160539*
- 26 -
2018. Interest income from cash in banks and short-term deposits amounted to P
=3.57 million in
2020, =
P4.72 million in 2019 and =
P5.26 million in 2019.
Miscellaneous receipts and cash overage amounting to =
P0.06 million in 2021 and =
P0.01 million in
2020 and =
P1.28 million in 2019 are recorded as part of other income.
6. Tuition and Other Receivables
This account consists of:
Tuition fee receivables
Advances to employees
Nontrade receivables
Accrued rent receivable (Note 22)
Advances to CE-IS’s stockholders
Accrued interest receivable (Note 22)
Other receivables
Less allowance for ECL
2021
P
=414,559,896
32,209,135
10,133,659
5,453,760
750,000
161,456
740,702
464,008,608
119,024,603
P
=344,984,005
2020
=378,943,371
P
18,408,504
10,135,580
4,607,245
750,000
273,749
480,036
413,598,485
91,402,898
=322,195,587
P
Tuition fee receivables are noninterest-bearing and are generally on a 120-day term.
Advances to employees comprise of noninterest-bearing advances which are collectible through
salary deduction and are generally on a 6 to 12-month term.
Recoveries from previously written-off tuition fee receivables amounting to =
P0.49 million in 2021,
=0.78 million in 2020 and =
P
P1.29 million in 2019 are recorded as part of other income.
The allowance for ECL pertains to the Group’s tuition fee receivables, which were impaired
through collective assessment. The rollforward of allowance for ECL follows:
Balance at beginning of year
Provision (Note 16)
Balance at end of year
2021
P
=91,402,898
27,621,705
P
=119,024,603
2020
=52,201,652
P
39,201,246
=91,402,898
P
As at March 31, 2021 and 2020, the aging analysis of tuition and other receivables follows:
2021
Tuition fee receivables
Advances to employees
Nontrade receivables
Accrued rent receivable
Advances to CE-IS’s stockholders
Accrued interest receivable
Other receivables
Neither Past
Due nor
Impaired
=
P88,955,107
32,209,135
10,133,659
5,453,760
750,000
161,456
740,702
=
P138,403,819
Past Due but not Impaired
1-30 Days Over 30 Days
Over 60 Days
=
P−
=
P−
=
P206,580,186
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
=
P−
=
P−
=
P206,580,186
Past Due
and
Impaired
P
= 119,024,603
−
−
−
−
−
−
P
= 119,024,603
Total
P
= 414,559,896
32,209,135
10,133,659
5,453,760
750,000
161,456
740,702
P
= 464,008,608
*SGVFS160539*
- 27 2020
Tuition fee receivables
Advances to employees
Nontrade receivables
Accrued rent receivable
Advances to CE-IS’s stockholders
Accrued interest receivable
Other receivables
Neither Past
Due nor
Impaired
=
P62,471,635
18,408,504
10,135,580
4,607,245
750,000
273,749
480,036
=
P97,126,749
Past Due but not Impaired
1-30 Days Over 30 Days
Over 60 Days
=
P−
=
P−
=
P225,068,838
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
=
P−
=
P−
=
P225,068,838
Past Due
and
Impaired
P
=91,402,898
−
−
−
−
−
−
P
=91,402,898
Total
=
P378,943,371
18,408,504
10,135,580
4,607,245
750,000
273,749
480,036
=
P413,598,485
7. Inventories
This account consists of:
Uniforms and outfits
Materials
Supplies
2021
P
=11,401,600
2,168,000
941,327
P
=14,510,927
2020
=9,843,843
P
2,216,769
1,257,273
=13,317,885
P
The cost of materials and supplies charged to “Cost of services - Material processing” amounted to
=1.64 million in 2021, =
P
P1.43 million in 2020 and =
P5.59 million in 2019 (see Note 16).
The cost of uniforms and outfits charged to “Cost of services - Uniforms and outfits” amounted to
=2.92 million in 2021, =
P
P24.94 million in 2020 and =
P13.73 million in 2019 (see Note 16).
8. Other Current Assets
This account consists of:
Advances to suppliers
Prepaid insurance and licenses
Prepaid taxes
Cost to fulfill a contract
2021
P
=41,790,070
17,595,471
624,339
588,897
P
=60,598,777
2020
=38,553,266
P
6,334,337
13,582,518
−
=58,470,121
P
Advances to suppliers are advances paid to suppliers for library subscriptions, classroom materials
and supplies.
Movement in cost to fulfill a contract follows:
Balances at beginning of year
Additions
Amortization (Note 16)
Balances at end of year
2021
P
=–
588,897
–
P
=588,897
2020
=7,716,942
P
−
(7,716,942)
=−
P
The amortization of the cost to fulfill a contract is charged to “Cost of services - Expenses for cocurricular activities” (see Note 16).
*SGVFS160539*
- 28 -
9. Property and Equipment
The composition of and the movements in this account follow:
2021
At Cost
Furniture,
Land
Buildings and Transportation
(At Revalued
Land
Leasehold and Auxiliary
Equipment
Amount) Improvements Improvements
Cost
Balances at beginning of year
Additions
Retirements/disposals
Transfer from CIP
Balances at end of year
Accumulated depreciation
and amortization
Balances at beginning of year
Depreciation and amortization
(Note 16)
Retirements/disposals
Balances at end of year
Net book values
P
=3,487,593,002
−
−
−
3,487,593,002
−
−
−
−
P
=3,487,593,002
P
=32,002,632 P
=1,848,599,693
−
4,544,818
−
−
−
50,699,389
32,002,632 1,903,843,900
30,093,900
723,338,078
211,138
33,383,489
−
−
30,305,038
756,721,567
P
=1,697,594 P
=1,147,122,333
Laboratory
Equipment
Library
Books
P
=412,735,533
854,778
−
−
413,590,311
P
=141,727,819
1,957,262
−
−
143,685,081
452,676,976
295,136,330
100,619,607
23,266,189
(3,215,390)
472,727,775
P
=102,248,022
26,160,980
−
321,297,310
P
=92,293,001
7,218,467
−
107,838,074
P
=35,847,007
P
=572,213,319
5,980,724
(3,218,246)
−
574,975,797
Construction
in Progress
Subtotal
Total
P
=106,651,980 P
=3,113,930,976 P
=6,601,523,978
4,702,145
18,039,727
18,039,727
(3,218,246)
(3,218,246)
(53,774,389)
(3,075,000)
(3,075,000)
57,579,736 3,125,677,457 6,613,270,459
−
−
1,601,864,891
1,601,864,891
90,240,263
90,240,263
−
(3,215,390)
(3,215,390)
− 1,688,889,764 1,688,889,764
P
=57,579,736 P
=1,436,787,693 P
=4,924,380,695
*SGVFS160539*
- 29 2020
At Cost
Land
(At Revalued
Amount)
Cost
Balances at beginning of year
P3,335,613,002
=
Additions
Retirements/disposals
Reclassification
Transfer from
investment property (Note 10)
151,980,000
Balances at end of year
3,487,593,002
Accumulated depreciation
and amortization
Balances at beginning of year
Depreciation and amortization
(Note 16)
Retirements/disposals
Balances at end of year
Net book values
=3,487,593,002
P
Land
Improvements
Buildings and
Leasehold
Improvements
Furniture,
Transportation
and Auxiliary
Equipment
=31,963,832 P
P
=1,768,813,546
38,800
29,356,730
Laboratory
Equipment
Library
Books
=553,672,180
P
32,171,799
(13,630,660)
P
=388,852,752
25,181,184
(1,298,403)
P
=132,936,700
8,791,119
50,429,417
Subtotal
Total
P
=115,679,725 P
=2,991,918,735 P
=6,327,531,737
41,401,672
136,941,304
136,941,304
(14,929,063)
(14,929,063)
(50,429,417)
3,113,930,976
151,980,000
6,601,523,978
92,747,870
1,519,709,463
1,519,709,463
7,871,737
96,590,112
96,590,112
(14,434,685)
(14,434,685)
1,601,864,890 1,601,864,890
P
=106,651,980 P
=1,512,066,085 P
=4,999,659,087
32,002,632
1,848,599,693
572,213,319
412,735,533
141,727,819
29,810,076
683,316,960
440,518,361
273,316,197
283,824
40,021,118
25,295,087
(13,136,472)
452,676,976
=119,536,343
P
23,118,346
(1,298,213)
295,136,330
P
=117,599,203
30,093,900
723,338,078
P1,908,732 P
=
=1,125,261,615
Construction
in Progress
100,619,607
P
=41,108,212
106,651,980
Major developments accounted under construction in progress are as follows:
As at March 31, 2021
 Construction of 5-storey building for CE-IS amounting to =
P56.48 million
 Installation of the new payroll amounting to =
P1.10 million
As at March 31, 2020
 Construction of 5-storey building for CE-IS and ongoing building improvement amounting to =
P96.55 million
 Installation of the new payroll and purchasing system amounting to =
P10.10 million
In 2021, the University transferred software from construction in progress amounting to =
P3.08 million (nil in 2020 and 2019) [see Note 11].
*SGVFS160539*
- 30 -
As at March 31, 2021, the Group’s construction in progress pertaining to the building improvement
for CE-IS is completed and the related cost was transferred to buildings and leasehold improvements.
As at March 31, 2020, the Group’s construction in progress pertaining to the Centro Mall in Malolos
Campus was completed and the related cost was transferred to buildings and leasehold improvements
The Group received laboratory equipment with a total value of =
P15.43 million in 2020 and
=
P7.09 million in 2019 (nil in 2021) as donation from various third parties.
As at March 31, 2021 and 2020, the Group retired/disposed certain properties with aggregate cost
amounting to =
P3.22 million and =
P14.93 million, respectively. Loss on retirement/disposal of these
properties amounted to =
P0.002 million in 2021, =
P0.42 million in 2020 and =
P2.13 million in 2019.
Proceeds from sale of property and equipment amounted to =
P0.08 million in 2020 and
=0.37 million in 2019 (nil in 2021).
P
Revaluation of Land
As at March 31, 2021 and 2020, land at revalued amounts consists of:
Cost
Balances at beginning of year
Transfer from investment property (Note 10)
Balances at end of year
Revaluation increment - gross
2021
2020
P
=537,177,782
–
537,177,782
=385,197,782
P
151,980,000
537,177,782
2,950,415,220
P
=3,487,593,002
2,950,415,220
=3,487,593,002
P
Based on the University’s policy, the appraisal of its properties is done within three to five years. The
latest appraisal was done in May 2019 by a professionally qualified appraiser accredited by the SEC
(see Note 25). This is also the fair values of the parcels of land as of March 31, 2021 which were
validated by checking the current prices of the commercial properties nearby the areas posted on
guaranteed property advertisement sites.
With the expiration of the contract agreement between the University and the lessee in 2020, the land
previously classified as “Investment Property” was reclassified as “Property and equipment”. The
deemed cost of the transferred property is the fair value of the land as of March 31, 2019, which is not
materially different from the fair value as of March 31, 2021 validated by checking the current prices
of the commercial properties nearby the area posted on guaranteed property advertisement sites (see
Note 10).
The fair value of the land as at March 31, 2021 and 2020 amounted to =
P3,487.59 million.
Deferred tax liability related to the revaluation surplus amounted to =
P295.04 million as at
March 31, 2021 and 2020 (see Note 18).
Key assumptions used in the value in use (VIU) calculation
As at March 31, 2021 and 2020, the recoverable amount of the CGU has been determined based on a
VIU calculation using five-year cash flow projections. Key assumptions in the VIU calculation of the
CGU are most sensitive to the following:
 Future revenues and revenue growth rates. Cash flow projections based on financial budgets
approved by management covering a five-year period (2022-2026) and considers the impact of
COVID-19 on their estimates.
*SGVFS160539*
- 31 

Long-term growth rates. Management does not include a long-term growth rate in the VIU
calculation for conservative purposes as this is difficult to predict.
Discount rate (10.58% for 2021 and 10.30% for 2020). The discount rate used for the
computation of the net present value is the weighted average cost of capital and was determined
by reference to the Parent Company’s capital structure.
Sensitivity to changes in assumptions
Management believes that no reasonably possible change in any of the above key assumptions would
cause the carrying value of property and equipment to materially exceed its recoverable amount.
10. Investment Property
On July 5, 2017, the University purchased a parcel of land for a total consideration of
=152.75 million. At the time of the purchase, the parcel of land is under an operating lease agreement
P
with a third party that will end in fiscal year 2022. On January 5, 2018, the lease agreement was
amended to change the lessor from the previous owner to the University and the end of lease term
from fiscal year 2022 to fiscal year 2019.
On November 15, 2019, the agreement between the University and the lessee has already expired.
Excavation and fencing have already been started in the property to be developed into a school
facility, thus, the investment property was reclassified as property and equipment starting on that
date.
Movement of the balance of investment property in 2020 (nil in 2021) follows:
Balance at beginning of year
Transfer to property and equipment (Note 9)
Balance at end of year
P151,980,000
=
(151,980,000)
=−
P
The rental income arising from this lease amounted to =
P1.63 million in 2020 and =
P2.05 million in
2019 (nil in 2021).
The latest appraisal was done in May 2019 by a professionally qualified appraiser accredited by the
SEC (see Note 25). Fair value changes amounted to =
P771,487 in 2019 (nil in 2021 and 2020).
11. Other Noncurrent Assets
This account consists of:
Prepaid taxes
Advances to contractors
Software costs
Refundable security deposits
Financial assets at FVOCI
Noncurrent portion of advances to employees
2021
P
=11,473,657
6,957,971
2,102,045
1,435,562
87,912
−
P
=22,057,147
2020
=–
P
7,512,236
61,250
1,316,266
79,920
1,019,716
=9,989,388
P
The effect of discounting noncurrent portion of advances to employees and refundable security
deposits is immaterial.
*SGVFS160539*
- 32 -
Advances to contractors pertain to advances paid to contractors for planned construction of various
facilities.
Software costs represent the costs incurred by the Group for its accounting and school management
software. The composition of and movements in this account is presented below:
Cost
Balances at beginning of year
Transfers from CIP (Note 9)
Additions
Balances at end of year
Accumulated amortization
Balances at beginning of year
Amortization (Note 16)
Balances at end of year
2021
2020
P
=5,713,000
3,075,000
105,000
8,893,000
=5,608,000
P
–
105,000
5,713,000
5,651,750
1,139,205
6,790,955
P
=2,102,045
3,747,417
1,904,333
5,651,750
=61,250
P
During 2021, intangible cost amounting to =
P3.08 million (nil in 2020) was transferred from
construction in progress to software (see Note 9).
Financial assets at FVOCI investments pertain to quoted equity securities held by the Group.
Quoted equity securities pertain to the Group’s investments in listed shares of stocks and are valued at
the closing stock price as at March 31, 2021 and 2020.
Cost of quoted equity investments and dividend income pertaining to these follows:
Cost of quoted equity investments
Dividend income
2021
P
=411,859
–
2020
=411,859
P
−
2019
=411,859
P
3,226
Movements in carrying value of financial assets at FVOCI in 2021 and 2020 investments follows:
Balances at beginning of year
Fair value gains (losses)
Balances at end of year
2021
P
=79,920
7,992
P
=87,912
2020
=82,800
P
(2,880)
=79,920
P
Changes in revaluation reserve on financial assets at FVOCI in 2021 and 2020 follows:
Balances at beginning of year
Change in revaluation reserve on financial assets
at FVOCI
Balances at end of year
2021
(P
=331,939)
2020
(P
=329,059)
7,992
(P
=323,947)
(2,880)
(P
=331,939)
*SGVFS160539*
- 33 -
12. Accounts Payable and Other Current Liabilities
This account consists of:
Accounts payable
Accrued expenses:
Employee benefits
Rent (Note 22)
Utilities
Others
Contract liabilities
Due but not yet collected
Due and collected
Payable to students
Deposits
Alumni fees payable
2021
P
=270,783,126
2020
=299,894,521
P
66,234,127
3,021,421
2,089,438
16,607,193
37,663,432
5,021,421
1,899,513
15,658,873
115,361,610
26,932,154
32,019,171
9,012,098
2,931,304
P
=544,991,642
130,768,381
46,127,750
16,516,181
14,173,546
4,502,910
=572,226,528
P
Accounts payable are noninterest-bearing and are generally on 30 to 60-day terms.
Accrued rent pertains to the contingent rent payable to its affiliate equivalent to 40% of the annual
income derived from the leased premises (see Note 22).
Other accrued expenses pertain to accrued purchases, accruals for audit fees, janitorial and security
services, advertising services and other services.
Payable to students are advanced collections from students or refunds of miscellaneous fees to
students to be applied to the next school year or semester.
Deposits include refundable deposits for toga rentals and security deposits on leases.
Alumni fees payable includes graduating students’ payments for alumni registration and identification
cards which are remitted to the alumni foundation.
As at March 31, 2021, contract liabilities amounting to =
P142.29 million will be recognized as revenue
in the following year. Contract liabilities amounting to =
P176.90 million as of March 31, 2020 were
recognized as revenue in fiscal year 2021.
As at March 31, 2021 and 2020, other noncurrent liability pertains to contract liability which are
collected in advance that is estimated to be recognized as revenue within two to five years.
In August 2020, the University reversed the recorded provision for losses amounting to
=27.76 million. The reversal is treated as an income under “Other income” in the consolidated
P
statements of income.
*SGVFS160539*
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13. Equity
Capital Stock
The University’s shares are listed and traded in the Philippine Stock Exchange.
Details of capital stock as at March 31, 2021 and 2010 is presented below.
Shares Authorized
800,000,000
Shares Issued and
Outstanding
372,414,400
Par Value
=1
P
Amount
=372,414,400
P
Below is the summary of the University’s track record of registration of securities under the Revised
Securities Regulation Code (SRC):
Number
of Shares
305,000
152,500
297,375
993,174
2,237,356
Date
November 10, 1986
August 9, 1988
February 23, 1994
September 18, 1995
March 17, 1998
Issue Price
=100
P
100
100
100
100
As at March 31, 2021 and 2020, the total number of shares registered under the SRC are 372,414,400
shares being held by 1012 and 1,013, respectively, stockholders for both years.
Cash Dividends
The University’s BOD approved the declaration of the following cash dividends:
Date of
Declaration
June 28, 2019
June 20, 2018
Date of Record
August 5, 2019
July 12, 2018
Date of Payment
August 29, 2019
August 6, 2018
Amount
=74,482,880
P
74,482,880
Dividend
per Share
=0.20
P
0.20
As at March 31, 2021 and 2020, the carrying value of dividends payable amounted to
=109.02 million and =
P
P105.76 million, respectively.
Retained Earnings
On August 28, 2020, the University’s BOD approved and authorized the re-appropriation of
=336.00 million for the detailed expansion program and projects of the Group. These projects include
P
the planned construction of the following in the Malolos Campus:
 5-storey dormitory for the students, faculty and employees of the University;
 2-storey building for the School of Dentistry;
 2-storey building to house a food court with students’ area in the ground floor and
commercial spaces in the second floor;
 Renovation of the Centrodome;
 Multi-purpose activity center and swimming pool for use of students; and
 Renovation and extension of buildings and various laboratories.
The estimated date of completion of the above projects as set by the University is within five years.
*SGVFS160539*
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On June 28, 2019, the University’s BOD approved the appropriation of =
P80.00 million for the construction
of the following:



Eight (8)-storey building in Mendiola Campus;
Construction of swimming pools and renovation of classroom in Malolos campus; and
Extension of the expansion projects of the University.
Outstanding appropriations of retained earnings as at April 1, 2018 follow:
a. On June 28, 2019, the University’s BOD approved the re-appropriation of =
P450.00 million for the
development of the Malolos campus, which has been an outstanding appropriation since April 1,
2018. These projects include the construction of a 3-storey building for the setting up of a preschool, elementary and high school in preparation for the K-12 program and to support the fiveyear development plan for Malolos campus.
The estimated date of completion of the above projects as set by the Group is within 2 years.
b. On June 23, 2017, the University’s BOD approved the expansion projects of the University
relating to the additional appropriated retained earnings amounting to =
P210.00 million. These
projects include the planned construction of the following:
 3-storey building for Science-related courses in CEU Malolos;
 Additional investments in CE-IS for construction of building in anticipation of increased
number of students in S.Y. 2020-2021;
 Additional investment in CELPI for construction of building in anticipation of increased
number of students in S.Y. 2020-2021; and
 Modernization of CEU Manila campus.
The estimated date of completion of the above projects as set by the University is within
five years.
c. On March 27, 2015, the University’s BOD approved the detailed expansion program and projects
of the University relating to the additional appropriated retained earnings amounting to =
P336.00
million. The University estimated that these projects will be completed within 5 years. These
projects include the budget for capital expenditures for the fiscal year April 2015 to March 2016
and the following in the Malolos Campus:
 Planned construction of a 5-storey dormitory for the students, faculty and employees of the
University;
 Planned construction of a 2-storey building for the School of Dentistry;
 Planned construction of a 2-storey building to house a food court with students’ area in the
ground floor and commercial spaces in the second floor;
 Renovation of the Centrodome;
 Planned construction of a multi-purpose activity center and swimming pool for use of
students; and
 Renovation and extension of buildings and various laboratories.
This appropriation was reversed by the University on March 31, 2020 upon expiration of the
period for the appropriation.
In accordance with Revised Securities Regulation Code Rule 68, Annex 68-D, the University’s
retained earnings available for dividend declaration as at March 31, 2021 amounted to
=445.79 million.
P
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The consolidated retained earnings include the deficit of the CEUHI amounting to =
P32.69 million and
=34.13 million as of March 31, 2021 and 2020, respectively.
P
Effect of transactions with non-controlling interest
In April 1, 2019, the University purchased an additional 4% ownership to CE-IS using the advances
to CE-IS stockholders amounting to =
P0.50 million. This resulted to a transfer of
non-controlling interest to equity reserve amounting to =
P2.04 million.
Dividends declared by CE-IS to NCI amounted to =
P3.98 million in 2021, =
P75.98 million in 2020 and
=
P76.11 million in 2019.
14. Tuition and Other Fees
This account consists of:
Tuition fees
Other fees
Income from other school
services
2021
P
=683,105,729
337,057,803
2020
=699,390,839
P
375,789,105
2019
=732,925,380
P
412,093,331
109,044,555
P
=1,129,208,087
239,276,872
=1,314,456,816
P
283,311,884
=1,428,330,595
P
Other fees include registration fees, health services fees, library fees, laboratory fees, development
fees, practicum fees, internship fees and review fees.
Income from other school services comprise of fees for diploma and certificates, transcript of records,
student handbooks, identification cards, entrance, qualifying and special examinations, laboratory
materials, application fees for foreign students, uniforms and outfits, and various collections for
specific items or activities.
Revenue from contracts with customers for tuition and other fees and miscellaneous fees are as
follows:
Timing of Recognition
Over time
Point in time
2021
Miscellaneous fees
Tuition fees
(Note 15)
=
P1,118,026,763
=
P3,086,857
11,181,324
7,664,224
=
P1,129,208,087
=
P10,751,081
2020
Miscellaneous
Tuition fees
fees (Note 15)
=1,251,511,561
P
=20,956,951
P
62,945,255
16,258,744
=1,314,456,816
P
=37,215,695
P
2019
Miscellaneous
Tuition fees
fees (Note 15)
=1,338,264,208
P
=25,405,671
P
90,066,387
19,539,591
=1,428,330,595
P
=44,945,262
P
Receivables and contract liabilities are disclosed in Notes 6 and 12, respectively.
Deferred tuition fees amounting to =
P75.55 million and =
P49.78 million as of March 31, 2021 and 2020,
respectively, pertains to the tuition and other fees to be recognized as revenue after the reporting date
or next school term.
*SGVFS160539*
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15. Miscellaneous Fees
This account consists of:
Dental pre-board fees
Laboratory fees
Dental materials
Handling fees
Photograph fees
Professional and continuing
education
Insurance fees
Locker fees
Service commissions
Swimming fees
Others
2021
P
=2,557,937
2,503,066
1,958,509
1,066,126
1,015,989
2020
=5,452,500
P
4,296,367
11,483,573
300,636
2,177,691
2019
=5,349,000
P
3,000,284
11,964,983
347,590
3,182,403
321,668
293,053
1,583
529
–
1,032,621
P
=10,751,081
1,802,290
268,807
4,064,610
449,978
4,564,590
2,354,653
=37,215,695
P
5,632,709
351,018
4,312,653
532,326
4,060,700
6,211,596
=44,945,262
P
Deferred miscellaneous fees amounting to =
P13.40 million and =
P12.69 million as of
March 31, 2021 and 2020, respectively, pertains to income from other school services, except for the
sale of books and uniforms, to be recognized as revenue in the remaining months after statement of
financial position date or next school term.
Others include income from sale of promotional items, sale of scrap and penalty from students.
16. Costs and Expenses
This account consists of:
Cost of Services
Salaries and wages
SSS contributions and other
employee benefits
Depreciation and amortization
(Notes 9, 11 and 19)
Sports and academic development
Light and water
Retirement expense (Note 17)
Library
Management information
Professional fees
Directors’ and administrative
committee
Uniforms and outfits (Note 7)
Stationery and office supplies
Affiliation
Expenses for co-curricular
activities (Notes 8 and 22)
Material processing (Note 7)
2021
P
=378,393,285
2020
=404,249,056
P
2019
=399,427,584
P
261,361,752
253,560,806
279,448,632
108,836,616
26,181,300
24,381,854
24,249,070
13,736,096
9,061,232
7,231,194
115,951,592
40,418,831
84,000,611
24,001,785
8,261,563
22,439,754
7,352,470
94,214,963
45,284,465
99,200,147
17,419,203
10,136,360
15,517,879
7,225,512
4,661,013
2,919,463
2,587,477
2,433,694
3,792,878
24,940,726
16,136,544
3,589,564
4,504,696
13,726,712
15,670,727
3,479,050
2,284,696
1,635,440
34,757,845
1,433,711
36,975,458
5,590,648
(Forward)
*SGVFS160539*
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Instructional and academic
expenses
Laboratory
Recruitment and placement
(Note 22)
Comprehensive and oral
examinations
Guidance and counseling
Registration expenses of students
University chapel expenses
Rental (Notes 19 and 22)
Publications
2021
2020
2019
P
=1,608,890
1,453,698
=2,067,166
P
3,106,366
=2,288,378
P
3,075,171
719,744
12,501,286
10,631,637
2,840,598
425,251
922,651
338,080
610,812
152,482
=1,067,852,428
P
3,443,191
782,731
1,154,494
363,315
36,834,273
178,580
=1,106,573,806
P
2021
P
=27,621,705
25,033,984
24,137,568
20,756,190
11,153,689
2020
=39,201,246
P
55,075,673
25,261,276
30,838,167
45,925,001
2019
P6,846,897
=
53,068,870
19,534,158
25,735,383
62,261,044
10,276,229
8,875,006
3,225,691
1,673,612
1,541,312
824,180
33,347
816,227
P
=135,968,740
7,710,975
13,422,079
4,092,442
1,657,959
619,181
7,055,004
140,741
5,727,958
=236,727,702
P
6,758,604
16,342,991
4,187,939
1,394,294
420,683
2,651,173
237,339
2,536,617
=201,975,992
P
585,498
106,039
40,997
1,800
–
(2,458)
P
=874,468,390
General and Administrative Expenses
Provision for ECL (Note 6)
Janitorial and security services
Taxes and licenses
Transportation and communication
Repairs and maintenance
Entertainment, amusement and
recreation
Clinical expenses
Insurance
Membership fees and dues
Advertisement
Program expenses
Bank charges
Miscellaneous
17. Retirement Plan
The University has a funded, noncontributory defined benefit retirement plan which provides for
death, disability and retirement benefits for all of its permanent employees. The annual contributions
to the retirement plan consist of a payment covering the current service cost for the year plus
payments toward funding the unfunded actuarial liabilities. Benefits are based on the employees’
years of service and final plan salary.
The fund is administered by two trustee banks under the supervision of the Board of Trustees (BOT)
of the plan. The BOT is responsible for the investment strategy of the plan.
In 2015, the University approved a new collective bargaining agreement with its employees with
changes in the increments on employee retirement benefits.
The latest actuarial valuation study of the defined benefit retirement plan of the University was made
as at March 31, 2021.
*SGVFS160539*
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Changes in the retirement liability are as follows:
2021
Retirement Expense in the Consolidated
Statements of Income
Present value of defined
benefit obligation
Fair value of plan assets
Balance
at Beginning
Current
of Year Service Cost
Net Interest
Subtotal
Benefits
Paid
=
P360,394,547 P
= 15,532,675
(169,033,062)
–
=
P191,361,485 P
= 15,532,675
P
= 17,073,987
(8,357,592)
=
P8,716,395
P
= 32,606,662
(8,357,592)
P
= 24,249,070
(P
= 49,496,599)
49,496,599
=
P–
Return on
Plan Assets
(Excluding
Amount
Included in
Net Interest)
Experience
Adjustments
=
P–
3,802,469
=
P3,802,469
=
P39,945,857
–
=
P39,945,857
Remeasurements in OCI
Actuarial
Actuarial
Changes
Changes
Arising
Arising from Changes
from Changes
in
in Financial Demographic
Assumptions
Assumptions
=
P9,171,282
–
=
P9,171,282
=
P–
–
=
P–
Subtotal
Contribution
by Employer
Balance
at End
of Year
P
= 49,117,139
3,802,469
P
= 52,919,608
=
P–
(42,000,000)
(P
= 42,000,000)
P
= 392,621,749
(166,091,586)
=
P226,530,163
Subtotal
Contribution
by Employer
Balance
at End
of Year
(P
=11,167,692)
18,915,858
=7,748,166
P
=–
P
–
=–
P
P360,394,547
=
(169,033,062)
=191,361,485
P
2020
Retirement Expense in the Consolidated
Statements of Income
Present value of defined
benefit obligation
Fair value of plan assets
Balance
Current
at Beginning
of Year Service Cost
Net Interest
=
P371,334,774 =
P15,728,573
(211,723,240)
–
=
P159,611,534 =
P15,728,573
P20,212,176
=
(11,938,964)
=8,273,212
P
Subtotal
P35,940,749
=
(11,938,964)
=24,001,785
P
Benefits
Paid
(P
=35,713,284)
35,713,284
=–
P
Return on
Plan Assets
(Excluding
Amount
Included in
Net Interest)
Experience
Adjustments
=–
P
18,915,858
=18,915,858
P
(P
=31,308,296)
–
(P
=31,308,296)
Remeasurements in OCI
Actuarial
Changes
Actuarial
Arising
Changes
Arising from Changes
in
from Changes
Demographic
in Financial
Assumptions
Assumptions
=19,771,098
P
–
=19,771,098
P
=369,506
P
–
=369,506
P
The number of plan members as at March 31, 2021 and 2020 is 618 and 695, respectively.
Actual return (loss) on plan assets as at March 31, 2021 and 2020 amounted to =
P4.56 million and (P
=6.98 million), respectively.
*SGVFS160539*
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The fair value of plan assets as at March 31, 2021 and 2020 follows:
Long-term investments:
Debt securities
Equity securities
Cash and cash equivalents
Others assets
Loans and receivables
Liabilities
2021
2020
P
=76,879,088
67,849,096
21,040,735
171,719
398,066
166,338,704
(247,118)
P
=166,091,586
=95,750,204
P
70,130,910
2,435,653
496,482
463,671
169,276,920
(243,858)
=169,033,062
P
All plan assets do not have quoted prices in an active market, except for equity and debt securities.
Cash and cash equivalents are with reputable financial institutions and are deemed to be standard
grade.
The plan assets pertain to diversified investments and are not exposed to concentration risk.
The overall investment policy and strategy of the University’s defined benefit plan is guided by the
objective of achieving an investment return which, together with contributions, ensures that there will
be sufficient assets to pay retirement benefits as they fall due while also mitigating the various risks
of the retirement plan.
The Group expects to contribute =
P34.98 million to the defined benefit retirement plan in fiscal year
2022.
The cost of defined retirement plan, as well as the present value of defined benefit obligation, is
determined using actuarial valuation. The actuarial valuation involves making various assumptions.
The principal assumptions used in determining the pension for the defined benefit retirement plan are
shown below:
Discount rates
Future salary increases
Mortality rate
Average expected future years of
service
Turnover rate
2021
4.65%
3.00%
2017 Philippine
Intercompany
Mortality
2020
4.97%
3.00%
2017 Philippine
Intercompany
Mortality
2019
5.77%
3.00%
2017 Philippine
Intercompany
Mortality
11
A scale ranging
from 9%
at age 18 to 0%
at age 65
11
A scale ranging
from 9%
at age 18 to 0%
at age 65
11
A scale ranging
from 9%
at age 18 to 0%
at age 65
*SGVFS160539*
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The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the defined benefit obligation as of the reporting date, assuming all other
assumptions were held constant:
Increase (Decrease)
in Defined Benefit Obligation
2021
2020
Discount rates
+1.00%
-1.00%
Future salary increases
+1.00%
-1.00%
(P
=27,539,233)
31,379,151
(P
=24,314,152)
27,625,153
33,503,409
(29,861,427)
29,706,978
(26,552,274)
The methods and types of assumptions used in preparing the sensitivity analysis did not change as at
March 31, 2021 and 2020.
Shown below is the maturity analysis of the undiscounted benefit payments:
Less than 1 year
More than 1 year to 5 years
More than 5 years to 10 years
More than 10 years to 15 years
More than 15 years to 20 years
More than 20 years
2021
P
=41,217,644
138,134,300
201,331,914
219,376,376
20,545,708
219,999,321
2020
=33,707,130
P
146,820,406
181,018,955
197,262,187
114,213,577
209,304,914
18. Income Taxes
All domestic subsidiaries qualifying as private educational institutions are subject to tax under
Republic Act No. 8424 (RA 8424), An Act Amending the National Internal Revenue Code, as
amended, and For Other Purposes, which was passed into law effective January 1, 1998. Title II
Chapter IV - Tax on Corporation - Sec 27(B) of the said Act defines and provides that: a “Proprietary
Educational Institution” is any private school maintained and administered by private individuals or
groups with an issued permit to operate from Department of Education, or CHED, or Technical
Education and Skills Development Authority, as the case may be, in accordance with the existing
laws and regulations and shall pay a tax of 10.00% on its taxable income. Regular corporations,
which include the Hospital, is subject to regular corporate income tax of 30%.
President Rodrigo Duterte signed into law on March 26, 2021 the Corporate Recovery and Tax
Incentives for Enterprises (CREATE) Act to attract more investments and maintain fiscal prudence
and stability in the Philippines. Republic Act (RA) 11534 or the CREATE Act introduces reforms to
the corporate income tax and incentives systems. It takes effect 15 days after its complete publication
in the Official Gazette or in a newspaper of general circulation or April 11, 2021.
The following are the key changes to the Philippine tax law pursuant to the CREATE Act which have
an impact on the Group:

Effective July 1, 2020, regular corporate income tax (RCIT) rate is reduced from 30% to 25% for
domestic and resident foreign corporations. For domestic corporations with net taxable income
not exceeding =
P5.00 million and with total assets not exceeding P
=100.00 million (excluding land
*SGVFS160539*
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on which the business entity’s office, plant and equipment are situated) during the taxable year,
the RCIT rate is reduced to 20%. RCIT is applicable to the Hospital.

Minimum corporate income tax (MCIT) rate reduced from 2% to 1% of gross income effective
July 1, 2020 to June 30, 2023. MCIT is applicable to the Hospital.

Preferential income tax rate for proprietary educational institutions and hospitals, which are
nonprofit, is reduced from 10% to 1% effective July 1, 2020 to June 30, 2023. This is applicable
to the University, CELPI and CE-IS.

Imposition of improperly accumulated earnings tax (IAET) is repealed.
Applying the provisions of CREATE, the Group is now subjected to a lower regular income tax rate.
Based on the provisions of Revenue Regulations (RR) No. 5-2021, the prorated regular corporate
income tax rate of the Group is as follows:
University, CELPI and CE-IS:
April 2020 to June 2020 (3 months / 12 months) x (10% - old rate)
July 2020 to March 2021(9 months / 12 months) x (1% - new rate)
Prorated regular corporate income tax
Tax Rate
2.50%
0.75%
3.25%
Hospital:
April 2020 to June 2020 (3 months / 12 months) x (30% - old rate)
July 2020 to March 2021(9 months / 12 months) x (20% - new rate)
Prorated regular corporate income tax
Tax Rate
7.50%
15.00%
22.50%
April 2020 to June 2020 (3 months / 12 months) x (2% - old rate)
July 2020 to March 2021(9 months / 12 months) x (1% - new rate)
Prorated minimum corporate income tax
Tax Rate
0.50%
0.75%
1.25%
The provision (benefit from) for income tax consists of:
2021
Current
3.25%/10% income tax
on special corporations
MCIT
Deferred
P
=4,920,329
19,735
(9,389,816)
(P
=4,449,752)
2020
=13,364,937
P
9,415
(4,441,203)
=8,933,149
P
2019
=3,313,698
P
1,512
3,478,708
=6,793,918
P
The reconciliation of income before tax computed at statutory income tax rate to provision for income
tax in the consolidated statements of income is shown in the next page.
*SGVFS160539*
- 43 -
Statutory provision for income tax
Effect of change in tax rate
Tax effects of:
Non taxable income from the
reversal of provisions
Interest income subjected to
final tax
Nondeductible expenses
Effect of higher tax rate
of the Hospital
Deductible temporary difference
and carry forward benefits
of NOLCO and MCIT for
which no deferred income
tax was recognized
Dividend income exempt from
tax
Effective provision for income tax
2021
P
=4,901,024
(8,424,986)
2020
=7,586,200
P
–
2019
=19,390,567
P
–
(902,174)
−
−
(179,022)
148,436
(680,598)
1,930,337
(525,883)
92,525
6,970
9,415
(725)
–
87,795
(12,162,243)
–
(P
=4,449,752)
−
=8,933,149
P
(323)
=6,793,918
P
The components of the Group’s net deferred tax liabilities follow:
Deferred tax liabilities on:
Revaluation gain on land
Undepreciated cost of property and equipment
Cost to fulfill a contract
Unrealized foreign currency exchange gain
Deferred tax assets on:
Retirement liability*
Allowance for ECL
Excess of acquisition cost over fair value of net
assets acquired from business combination
Unamortized excess of contribution over
the normal cost
Difference between the actual lease payments
and PFRS 16 related accounts
Nonrefundable contract liability
Accrued expenses
NOLCO
Unrealized foreign currency exchange loss
Others
Net deferred tax liabilities
2021
2020
P
=295,041,522
140,647,546
5,889
–
435,694,957
=295,041,522
P
163,549,662
−
13,092
458,604,276
16,313,854
12,457,705
19,136,149
9,906,746
4,073,966
4,073,966
3,551,436
3,486,136
1,459,524
1,381,893
844,196
13,643
4,560
25,851
40,126,628
P
=395,568,329
483,743
4,612,775
5,390,526
1,238,278
−
25,851
48,354,170
=410,250,106
P
*Net of deferred income tax asset from Other Comprehensive Income amounting to =
P 12,396,294 and =
P 7,104,334 as of
March 31, 2021 and 2020, respectively.
*SGVFS160539*
- 44 As allowed under RA 8424, being a private educational institution, the Group claims the tax
deductions of capital expenditures for tax purposes in the year incurred. The Group recognized
deferred tax liability on the undepreciated cost of property and equipment which pertains to the
remaining cost of property and equipment of the University and CELPI not yet depreciated but was
already recognized as tax deduction.
The details of NOLCO which can be claimed in the future by the University, CELPI and the Hospital
as credit against the regular corporate income are shown below.
Inception
Year
2021
2020
2019
2018
March 31,
2020
=–
P
9,411,103
6,768,983
7,256,852
=23,436,938
P
Addition
=
P1,364,338
–
−
–
=
P1,364,338
Application
Expiration
=
P–
=
P–
(P
=9,411,103)
−
−
−
(3,971,095) (3,285,757)
(P
=13,382,198) (P
=3,285,757)
March 31,
2021
=
P1,364,338
–
6,768,983
–
=
P8,133,321
Expiry
Year
2026
2023
2022
2021
On September 30, 2020 the BIR issued Revenue Regulations No. 25-2020 implementing Section
4(bbbb) of “Bayanihan to Recover As One Act” which states that the NOLCO incurred for taxable
years 2020 and 2021 can be carried over and claimed as deduction from gross income for the next
five (5) consecutive taxable years immediately following the year of such loss. Hence, the incurred
NOLCO of the companies within the Group in taxable year 2021 can be claimed as deduction from
the regular taxable income from taxable years 2022 to 2016, in pursuant to the Bayanihan to Recover
As One Act.
The details of MCIT which can be claimed in the future by the Hospital used as credit against income
tax due are shown below.
Inception
Year
2021
2020
2019
March 31,
2020
=−
P
9,415
1,512
=10,927
P
Addition
=
P19,735
–
−
=
P19,735
Application
=
P−
−
−
=
P−
Expiration
=
P−
−
−
=
P−
March 31,
2021
=
P19,735
9,415
1,512
=
P30,662
Expiry
Year
2024
2023
2022
As at March 31, 2021 and 2020, the Group did not recognize deferred tax assets on the following
temporary differences deemed to be not recoverable:
NOLCO
MCIT
2021
P
=6,768,983
30,662
P
=6,799,645
2020
=11,054,153
P
10,927
=11,065,080
P
Issuance of Revenue Regulation 14-2021:
To ease the burden of taxation among propriety educational institutions, especially during this time of
COVID-19 pandemic, and taking into account the pending Bills in Congress seeking to amend
Section 27 (B) of the National Internal Revenue Code (NIRC) of 1997, as amended, the BIR issued
RR14-2021 on July 28, 2021 to finally clarify the income taxation of schools, the implementation of
the provisions regarding propriety educational institution’s tax treatment of Revenue Regulations
(RR) No. 5-2021 dated April 8, 2021 on the definition of proprietary educational institutions, insofar
as it includes therein the phrase "which are non-profit", are hereby suspended pending passage of
such appropriate legislation.
*SGVFS160539*
- 45 -
19. Leases
Group as Lessor
The Group leases out portions of its spaces to concessioners which are renewable every two years.
Total rent income recognized amounted to =
P2.3 million in 2021, =
P17.96 million in 2020 and
=
P15.34 million in 2019 (see Note 22).
As lessor, future minimum rentals under operating leases are shown below.
Within 1 year
After 1 year but not more than 5 years
More than 5 years
2021
P
=2,950,707
3,221,736
714,286
P
=6,886,729
2020
=9,957,055
P
5,721,316
1,165,413
=16,843,784
P
Group as Lessee
On July 29, 2004, the Group entered into a 25-year operating lease, which commenced on
January 1, 2005, with Philtrust Bank for the lease of its land and building in Makati. The contract
requires for =
P24.00 million fixed annual rentals plus 40.00% of the annual net income before tax of
the Group’s Makati-Buendia campus.
The Group recognized right-of-use asset and lease liability. The rollforward analysis of right-of-use
asset follows:
Cost
Balances at beginning and end of year
Accumulated Amortization
Balances at beginning of year
Amortization (Note 16)
Balances at end of year
Net Book Value
2021
2020
P
=205,121,481
=205,121,481
P
17,457,147
17,457,148
34,914,295
P
=170,207,186
−
17,457,147
17,457,147
=187,664,334
P
2021
P
=192,501,760
10,640,885
(24,000,000)
P
=179,142,645
2020
=205,121,481
P
11,380,279
(24,000,000)
=192,501,760
P
P
=14,141,832
165,000,813
P
=179,142,645
P13,359,116
=
179,142,644
=192,501,760
P
The rollforward analysis of lease liability follows:
Balances at beginning of year
Interest expense (Note 20)
Payments
Balances at end of year
Lease liability - current
Lease liability - noncurrent
Shown below is the maturity analysis of the undiscounted lease payments:
Within one year
After 1 year but not more than 5 years
More than 5 years
2021
P
=24,000,000
96,000,000
114,000,000
P
=234,000,000
2020
=24,000,000
P
96,000,000
138,000,000
=258,000,000
P
*SGVFS160539*
- 46 -
Future minimum rentals under the operating lease as of March 31, 2019 are as follows:
Within one year
After 1 year but not more than 5 years
More than 5 years
2019
=24,000,000
P
96,000,000
162,000,000
=282,000,000
P
2018
=24,000,000
P
96,000,000
186,000,000
=306,000,000
P
Other leased assets
In addition, the Group entered into a one-year operating lease with a third party for water services
which will automatically be renewed for another year under the same terms and conditions. The
University’s rental expense arising from this contract amounted to P
=0.61 million and
=0.69 million in 2020 and 2019 (nil in 2021), respectively (see Note 16). The Group applies the
P
‘short-term lease’ recognition exemption and low-value asset recognition exemption for this lease.
20. Interest Expense
The account consists of the following (nil in 2019):
Interest from lease liability (Note 19)
Interest from deficiency documentary stamp taxes
and other percentage taxes
2021
P
=10,640,885
2020
=11,380,279
P
1,240,768
P
=11,881,653
73,540
=11,453,819
P
*SGVFS160539*
- 47 -
21. Segment Reporting
The Group operates in geographical segments. Financial information on the operations of these segments are summarized as follows:
2021
Segment assets
Segment liabilities
Capital expenditures
Segment revenues
Expenses
Depreciation and amortization expense
Net income (loss)
Mendiola
=
P3,474,512,891
504,729,606
7,994,218
762,852,148
613,925,565
53,670,973
148,926,583
Malolos Makati-Buendia
P
= 1,452,916,258
=
P257,682,630
25,791,036
249,386,205
4,505,287.00
59,239
98,773,555
129,518,741
111,151,610
146,751,609
11,216,089
26,189,412
(12,378,055)
(17,232,868)
MakatiLegaspi
=
P612,467,547
569,986
36,805
55,705,345
67,323,496
13,695,317
(11,618,151)
Makati-Legaspi
Hospital
(Pre-operating)
=
P32,248,617
347,937
–
2,831,068
2,370,759
–
460,309
CE-IS
=
P159,723,886
37,446,270
3,063,915
94,477,408
50,054,535
817,150
44,422,873
CELPI
=
P58,045,877
7,823,329
2,380,263
29,425,872
31,200,088
3,247,675
(1,774,216)
Adjustments
=
P47,605,695
731,119,140
–
–
–
–
4,449,752
Total
=
P6,095,203,401
1,557,213,509
18,039,727
1,173,584,137
1,022,777,662
108,836,616
155,256,227
CE-IS
=111,014,391
P
18,418,692
5,125,012
185,832,076
58,645,785
344,788
127,186,291
CELPI
=55,820,736
P
5,832,833
6,891,650
46,711,409
45,608,746
3,040,430
1,029,122
Adjustments
P47,605,695
=
715,856,961
–
–
–
–
(8,933,149)
Total
=5,988,492,025
P
1,554,163,705
136,941,304
1,392,319,404
1,316,451,672
115,951,592
66,934,583
CE-IS
=
P 73,572,417
5,742,102
715,646
60,088,549
27,446,384
106,630
32,642,164
CELPI
=
P44,313,147
4,447,585
10,664,265
42,635,979
43,025,729
2,671,947
(389,750)
Adjustments
=
P47,605,695
681,715,508
–
–
–
–
(6,793,918)
Total
=
P5,537,004,859
1,086,152,013
176,516,060
1,505,593,075
1,311,687,401
94,214,963
187,111,756
2020
Segment assets
Segment liabilities
Capital expenditures
Segment revenues
Expenses
Depreciation and amortization expense
Net income (loss)
Mendiola
=
P3,426,479,902
519,228,548
50,609,689
842,584,088
774,072,840
61,396,211
68,584,788
Malolos
=1,392,200,840
P
35,237,779
61,295,098
104,761,707
155,920,896
12,163,116
(51,159,189)
Makati-Buendia
=287,877,250
P
243,534,598
4,885,739
103,426,747
166,062,303
26,623,330
(62,635,556)
MakatiLegaspi
=637,385,357
P
15,737,135
8,134,116
105,820,894
112,292,283
12,383,717
(6,471,389)
Makati-Legaspi
Hospital
(Pre-operating)
=30,107,854
P
317,159
–
3,182,483
3,848,819
–
(666,335)
MakatiLegaspi
=
P620,797,222
9,120,326
18,008,263
83,445,373
103,071,672
13,026,560
(19,626,299)
Makati-Legaspi
Hospital
(Pre-operating)
=
P27,035,274
224,726
–
3,682,327
3,829,461
–
(147,134)
2019
Segment assets
Segment liabilities
Capital expenditures
Segment revenues
Expenses
Depreciation and amortization expense
Net income (loss)
Mendiola
=
P3,310,049,758
328,725,209
48,230,194
1,023,828,509
826,814,003
57,314,910
197,014,507
Malolos
P
=1,321,616,096
18,502,181
94,125,355
108,304,327
140,616,709
11,908,419
(32,312,382)
Makati-Buendia
=
P92,015,250
37,674,376
4,772,337
183,608,011
166,883,443
9,186,497
16,724,568
*SGVFS160539*
- 48 -
In 2021, 2020 and 2019, there were no intersegment revenues and all revenues are made to external
customers.
As at March 31, 2021 and 2020, segment assets for each segment do not include “Goodwill”
amounting to =
P47.61 million.
Segment liabilities for each segment do not include the following:
2021
P
=395,568,329
226,530,163
109,015,657
4,991
P
=731,119,140
Deferred tax liabilities - net
Retirement liability
Dividends payable
Income tax payable
2020
=410,250,106
P
191,361,485
105,755,874
8,489,496
=715,856,961
P
2019
=415,466,126
P
159,611,534
104,576,634
2,061,214
=681,715,508
P
Net income for each segment does not include “Provision for (benefit from) income tax” amounting
to (P
=4.45 million) in 2021, =
P8.93 million in 2020 and =
P6.79 million in 2019.
22. Related Party Transactions
Parties are related if one party has the ability, directly or indirectly, to control the other party or
exercise significant influence over the other party in making financial and operating decisions; and
the parties are subject to common control or common significant influence. Related parties may be
individuals or corporate entities.
Affiliates are entities that are subject to common control.
Significant transactions with related parties include the following:
2021
Category
Affiliates
PhilTrust Bank
Cash
Interest income
Short-term deposits
Interest income
Rent
Manila Hotel
Expenses for co-curricular
activities (Note 16)
Manila Bulletin Publishing
Corporation
Recruitment and placement
(Note 16)
TH Coffee Services Philippine
Corp.
Rental income (Note 19)
Karate Kid Japanese Fastfood
Rental income (Note 19)
Amount/Volume Outstanding Balance
P
=38,287,191
483,874
42,076,597
2,868,934
24,000,000
39,900
719,744
Terms and Conditions/Nature
P
=141,006,795 Savings deposit with interest rate at 0.50%
73,168,015 Money market placements at 6 to
161,456 53 days with interest ranging from
2.08% to 3.20%
3,021,421 Unsecured; Rent of building in Makati
– Rental of room and facilities for
commencement exercises
– Advertising services, terms vary as to type
and frequency of advertisements
189,117
47,279 Payable the following month. Rental of
commercial space
60,480
20,160 Payable the following month. Rental of
commercial space
*SGVFS160539*
- 49 -
2020
Category
PhilTrust Bank
Cash
Interest income
Short-term deposits
Interest income
Rent (Note 12)
Manila Hotel
Expenses for co-curricular
activities (Note 16)
Manila Bulletin Publishing
Corporation
Recruitment and placement
(Note 16)
TH Coffee Services Philippine
Corp.
Rental income (Note 19)
Karate Kid Japanese Fastfood
Rental income (Note 19)
Amount/Volume
Outstanding Balance
Terms and Conditions/Nature
=25,144,377
P
=102,235,730
P
Savings deposit with interest rate at
0.50%
373,661
17,705,067
4,453,791
–
180,402,700
273,546
43,713,055
3,021,421
924,067
–
Rental of room and facilities for
commencement exercises
2,409,532
–
Advertising services, terms vary as to
type and frequency of advertisements
1,737,794
–
Payable the following month. Rental of
commercial space
513,000
151,200
Payable the following month. Rental of
commercial space
Money market placements at 6 to
53 days with interest ranging from
2.08% to 3.20%
Unsecured; Rent of building in Makati
Generally, related party transactions are settled in cash.
Transactions with Retirement Plans
Under PFRSs, certain post-employment benefit plans are considered as related parties. The
University’s retirement plan is in the form of a trust administered by two trustee banks. Shown below
are the transactions with the retirement fund for 2021 and 2020:
Beginning of year
Interest income
Actual loss on plan assets (excluding interest)
Actual contributions
Benefits paid
End of year
2021
P
=169,033,062
8,357,592
(3,802,469)
42,000,000
(49,496,599)
P
=166,091,586
2020
=211,723,240
P
11,938,964
(18,915,858)
–
(35,713,284)
=169,033,062
P
As at March 31, 2021 and 2020, the retirement fund has 8,072,299 shares or 2.17% interest in the
University. The total unrealized losses recognized from these investments amounted to
(P
=3.80 million) and (P
=19.00 million) as at March 31, 2021 and 2020, respectively.
No limitations and restrictions are provided and voting rights over these shares are exercised by a
trust officer.
There are no other transactions by the Group or its related parties with the retirement fund as at
March 31, 2021 and 2020.
*SGVFS160539*
- 50 -
Remuneration of Key Management Personnel
The Group’s key management personnel include all management committee officers. The summary
of compensation of key management personnel follows:
Short-term employee salaries and benefits
Post-employment benefits
2021
P
=16,458,215
4,692,858
P
=21,151,073
2020
=18,267,668
P
4,441,697
=22,709,365
P
There are no agreements between the Group and any of its directors and key officers providing for
benefits upon termination of employment, except for such benefits to which they may be entitled
under the Group’s retirement plan.
Approval requirements and limits on the amount and extent of related party transactions
The Board of Directors shall approve all material related party transactions before their
commencement. Material related party transactions shall be identified taking into account the related
party registry. Transactions amounting to ten percent (10%) or more of the total assets of the Group
that were entered into with an unrelated party that subsequently becomes a related party may be
excluded from the limits and approval process requirement.
23. Notes to Consolidated Statements of Cash Flows
Noncash investing activities pertain to the following:
a. Retirement/disposal of assets - In 2021, 2020 and 2019, the University retired/disposed furniture
and fixtures and laboratory equipment with aggregate cost of =
P3.22 million,
=
P14.93 million, =
P30.85 million, respectively, and accumulated depreciation of
=
P3.22 million, =
P14.43 million, =
P22.25 million, respectively (see Note 9).
b. Donation income - In 2020 and 2019, the University received various laboratory and optical
equipment from third parties as donations amounting to =
P15.43 million and =
P7.09 million
(nil in 2021), respectively (see Note 9).
c. Revaluation increment on the land - In 2019, the University engaged the services of an
independent appraiser and obtained valuation for its land in Mendiola, Malolos and
Makati-Legaspi, Makati-Malugay and Las Piñas. The appraisal resulted in the recognition of
increases in revaluation increment on land of =
P1.45 billion, gross of deferred income tax of
=
P145.04 million (see Note 9).
d. Reclassification from investment property to property and equipment - In 2020, the contract
between the lessee and the University expired, thus, the investment property amounting to
=
P151.98 million was reclassified as property and equipment (see Notes 9 and 10).
e. Capitalization of advances to stockholders - In 2020, advances to stockholders recorded under
“Tuition and other receivables” amounting to =
P0.50 million was used to purchase an additional
4% ownership over CE-IS (see Note 13).
f.
In 2021, the University transferred software amounting to P
=3.06 million from construction in
progress (nil in 2020 and 2019) [see Notes 9 and 11].
*SGVFS160539*
- 51 -
24. Basic/Diluted EPS
The income and share data used in the basic/diluted EPS computations are as follows:
Net income (a)
Weighted average number of
outstanding common shares (b)
Basic/diluted earnings per share
(a/b)
2021
P
=152,556,823
2020
=62,346,136
P
2019
=184,163,109
P
372,414,400
372,414,400
372,414,400
P
=0.41
=0.17
P
=0.49
P
There were no potential dilutive financial instruments in 2021, 2020 and 2019.
25. Fair Value Measurement
The Group uses a hierarchy for determining and disclosing the fair value of its assets and liabilities.
The tables below summarize the carrying amounts and the fair values of the Group’s financial and
nonfinancial assets and liabilities as at March 31.
Carrying
Value
Assets measured at fair value:
Financial assets
Financial assets at FVOCI
P
=87,912
Nonfinancial assets
Land classified as property and equipment
valued under revaluation model
3,487,593,002
P
=3,487,680,914
Carrying Value
Assets measured at fair value:
Financial assets
Financial assets at FVOCI
=79,920
P
Nonfinancial assets
Land classified as property and equipment
valued under revaluation model
3,487,593,002
=3,487,680,914
P
2021
Fair Value Measurement Using
Quoted Prices
Significant
in Active Unobservable
Markets
Inputs
Total Fair
(Level 1)
(Level 3)
Value
P
=87,912
P
=–
P
=87,912
–
P
=87,912
3,487,593,002
P
=3,487,593,002
3,487,593,002
P
=3,487,680,914
2020
Fair Value Measurement Using
Quoted Prices
Significant
in Active
Unobservable
Markets
Inputs
(Level 1)
(Level 3) Total Fair Value
=79,920
P
P
=–
P
=79,920
–
=79,920
P
3,487,593,002
P3,487,593,002
=
3,487,593,002
P
=3,487,672,922
The methods and assumptions used by the University in estimating the fair value of the financial and
nonfinancial assets and liabilities are as follows:
Cash and Cash Equivalents, Tuition and Other Receivables, Accounts Payable and Other Current
Liabilities (Excluding Statutory Obligations), Dividends Payable
Fair values approximate carrying amounts given the short-term nature of these accounts.
*SGVFS160539*
- 52 -
Property and Equipment and Investment Property
The tables below summarize the valuation techniques and the significant unobservable inputs used in
the valuation of land recorded as property equipment and investment property:
Land
Valuation Techniques
Sales Comparison
Approach/Market
Approach
Significant Unobservable
Inputs
Internal factors:
Location
Improvements
Elevation
Corner Influence
Use
Development
Size
Time Element
Range
(Weighted Average)
+10% to -20%
+0% to -20%
+0% to +20%
+0% to +5%
-20% to +20%
+10% to +20%
-20% to +20%
+0%
The range of the prices per square meter used in the valuation is shown below.
Land
Valuation techniques
Sales Comparison
Approach/Market
Approach
Location
Comparable analysis:
External factor (net price)
Range (Weighted
Average)
Manila - Site 1 and 2
=
P133,178 to =
P157,729 per
square meter (sqm)
Makati - Malugay
=
P247,500 to =
P360,000 per
sqm
Makati - Legaspi
=
P270,000 to =
P500,000 per
sqm
Malolos, Bulacan
=
P8,550 to =
P16,200 per
sqm
Las Piñas
=
P19,655 to =
P25,200 per
sqm
The description of the valuation technique and inputs used in valuation of the University’s land
follows:
Market Data
Approach
A comparable method where the value of the property is based on
sales and listings of comparable property by reducing reasonable
comparative sales and listings to a common denominator. This is done
by adjusting the differences between the subject property and those
actual sales and listings regarded as comparable. The properties used
as basis of comparison are situated within the immediate vicinity of
the subject property. Comparison would be premised on the factors of
location, size and shape of the lot, and time element.
*SGVFS160539*
- 53 -
Location
Improvements and
developments
Corner Influence
Use
Elevation
Size
Time Element
For a tract of land designated for a purpose or site occupied or
available for occupancy, one of the key factors in land valuation is the
location or area of preference.
Renovations in the land including the construction of building and
installation of machineries and equipment should not be included in
the valuation.
Enhancement in usefulness accrues to those lots located or near street
corners especially in retail business districts.
Includes considerations factored in such as zoning, water and riparian
rights, environmental issues, building codes and flood zones.
Height of the property above or below a fixed reference point.
Physical magnitude, extent or bulk, relative or proportionate
dimensions. The value of the lot varies in accordance to the size of the
lots. Basic rule of thumb is the bigger the lot size the lower the value,
the smaller the lot size the higher the value.
The measured or measurable period during action or condition exist.
It is usually associated with the period in which the property can be
sold in an open market within reasonable time.
Sensitivity analyses to the significant changes in unobservable inputs are shown below:
 Significant increases (decreases) in the price (per sqm) would result in a significantly higher
(lower) fair value measurement.
 Significant factor in the location of the property (e.g., closer to a main road or secondary road)
would result in a significantly higher (lower) fair value measurement
 Significant improvements and developments (deterioration) in the location would result in a
significantly higher (lower) fair value measurement.
 Significant increases (decreases) in the influence of the corners of the property would result in a
significantly higher (lower) fair value measurement.
 Significant increases (decreases) in the use of the property would result in a significantly lower
(higher) fair value measurement.
 Significant increases (decreases) in the elevation of the property would result in a significantly
lower (higher) fair value measurement.
 Significant increases (decreases) in the size of the property would result in a significantly lower
(higher) fair value (per sqm) measurement.
 Significant increases (decreases) in the period in which the property can be sold in an open
market would result in a significantly lower (higher) fair value measurement.
The appraiser considers the highest and best use of the asset which takes into account the use of the
asset that is physically possible, legally permissible and financially feasible.
Quoted Equity Securities Classified as Investments at FVOCI
Fair value is based on quoted prices.
26. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments comprise of cash and cash equivalents. The main
purpose of these financial instruments is to fund the Group’s operations and capital expenditures.
The Group has various other financial instruments such as tuition and other receivables, refundable
deposits, equity investments, accounts payable and accrued expenses excluding statutory payables
and dividends payable that arise directly from operations.
*SGVFS160539*
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The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and
foreign currency risk.
Credit Risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur financial loss.
The Group’s risk management policy to mitigate credit risk on its receivables from students include
the refusal of the Group to release pertinent records like examination permit, transcript of records and
transfer credentials, if applicable, until the student’s account is cleared/paid. As at the reporting date,
there are no significant concentrations of credit risk.
As at March 31, 2021 and 2020, the analysis of financial assets is shown below:
2021
Loans and receivables:
Cash and cash equivalents*
Tuition and other receivables
Tuition fee receivables
Accrued interest receivable
Advances to employees
Accrued rent receivable
Advances to CE-IS‘s stockholders
Other receivables
Refundable security deposits
Investments at FVOCI
Neither Past
Due nor
Impaired
Past Due
ECL
Gross of ECL
P
=510,495,469
P
=–
P
=–
P
=510,495,469
88,955,107
161,456
32,209,135
5,453,760
750,000
10,874,361
1,435,562
87,912
P
=650,422,762
325,604,789
–
–
–
–
–
–
–
P
=325,604,789
(119,024,603)
–
–
–
–
–
–
–
(P
= 119,024,603)
295,535,293
161,456
32,209,135
5,453,760
750,000
10,874,361
1,435,562
87,912
P
=857,002,948
* Excluding cash on hand
2020
Loans and receivables:
Cash and cash equivalents*
Tuition and other receivables
Tuition fee receivables
Accrued interest receivable
Advances to employees,
including noncurrent portion
Accrued rent receivable
Advances to CE-IS‘s stockholders
Other receivables
Refundable security deposits
Investments at FVOCI
Neither Past
Due nor
Impaired
Past Due
ECL
Gross of ECL
=349,234,428
P
=–
P
P
=–
P
=349,234,428
62,471,635
273,749
316,471,736
–
(91,402,898)
–
287,540,473
273,749
19,428,220
4,607,245
750,000
10,615,616
1,316,266
79,920
=448,777,079
P
–
–
–
–
–
–
=316,471,736
P
–
–
–
–
–
–
(P
=91,402,898)
19,428,220
4,607,245
750,000
10,615,616
1,316,266
79,920
P
=673,845,917
* Excluding cash on hand
The Group’s neither past due nor impaired receivables are high grade receivables which, based on
experience, are highly collectible.
As at March 31, 2021 and 2020, the age of the entire Group’s past due but not impaired tuition fee
receivables is disclosed in Note 6.
*SGVFS160539*
- 55 -
Tuition Fee Receivables
The Group uses a provision matrix to calculate ECL for tuition fee receivables. The provision rates
are determined based on the Group’s historical observed default rates analyzed in accordance to days
past due by grouping of customers based on customer type. The Group adjusts historical default rates
to forward-looking default rate by determining the closely related economic factors affecting each
customer segment. At each reporting date, the observed historical default rates are updated and
changes in the forward-looking estimates are analyzed.
Set out in the next page is the information about the credit risk exposure on the Group’s tuition fee
receivables using a provision matrix as of March 31, 2021 and 2020.
As of March 31, 2021:
Current
Estimated tuition fee receivable at
default
Expected credit losses
Expected credit losses - lifetime
P
=210,016,526
P
=4,478,605
P
=–
Days Past Due
1 to less 3
< 1 quarter
quarters
P
=–
P
=–
P
=–
Over 3
quarters
Total
P
=151,934,909
P
=102,166,033
P
=8,758,155
P
=414,559,896
P
=110,266,448
P
=8,758,155
Days Past Due
1 to less 3
quarters Over 3 quarters
Total
P
=52,608,461
P
=3,621,810
P
=–
As of March 31, 2020:
Estimated tuition fee receivable at
default
Expected credit losses
Expected credit losses - lifetime
Current
< 1 quarter
P199,939,692
=
=11,671,992
P
=−
P
P−
=
=−
P
=−
P
P79,199,402
=
=10,744,283
P
=−
P
P
=99,804,277
P
=60,228,468
P
=8,758,155
P
=378,943,371
P
=82,644,743
P
=8,758,155
Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments
associated with financial assets and financial liabilities. Liquidity risk may result from a counterparty
failing on repayment of a contractual obligation or inability to generate cash inflows as anticipated.
The Group seeks to manage its liquidity risk to be able to meet its operating cash flow requirements,
finance capital expenditures and maturing debts. As an inherent part of its liquidity risk management,
the Group regularly evaluates its projected and actual cash flows. To cover its short-term and longterm funding requirements, the Group intends to use internally generated funds and external
financing, if needed.
The maturity profile of the Group’s financial assets and financial liabilities as at March 31, 2021 and
2020 based on contractual undiscounted receipts and payments as shown in the next page.
*SGVFS160539*
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Cash on hand
Financial assets:
Cash in banks and cash equivalents
Tuition and other receivables:
Tuition fee receivables
Accrued interest receivable
Others:
Advances to employees,
including noncurrent
portion
Nontrade
Accrued rent receivable
Advances to CE-IS’s
stockholders
Other receivables
Refundable security deposits
Financial assets at FVOCI
On Demand
P
=363,500
2021
Less than
3 Months 3 to 12 Months
P
=–
P
=–
Over 1 Year
P
=–
Total
P
=363,500
266,881,391
243,614,078
–
–
510,495,469
295,535,293
–
–
161,456
–
–
–
–
295,535,293
161,456
32,209,135
10,133,659
5,453,760
–
–
–
–
–
–
–
–
32,209,135
10,133,659
5,453,760
750,000
740,702
–
–
612,067,440
–
–
–
–
243,775,534
–
–
–
–
–
243,345,498
25,864,320
32,019,171
9,012,098
2,931,304
–
109,015,657
422,188,048
–
62,087,859
–
–
–
–
–
62,087,859
–
–
–
–
–
24,000,000
–
24,000,000
Net undiscounted financial assets
(liabilities)
P
=189,879,392
P
=181,687,675
Accounts payable and accrued
expenses:
Accounts payable*
Accrued expenses
Payable to students
Deposits
Alumni fees payable
Lease liability**
Dividends payable
–
–
–
1,435,562d
87,912
1,523,474
–
–
–
–
–
210,000,000
–
210,000,000
750,000
740,702
1,435,562d
87,912
857,366,448
243,345,498
87,952,179
32,019,171
9,012,098
2,931,304
234,000,000
109,015,657
718,275,907
(P
= 24,000,000) (P
= 208,476,526) P
=139,090,541
* Excluding statutory payables of =
P 27,437,628
**Including interest to maturity amounting to =P 54,857,355
Cash on hand
Financial assets:
Cash in banks and cash equivalents
Tuition and other receivables:
Tuition fee receivables
Accrued interest receivable
Others:
Advances to employees,
including noncurrent
portion
Nontrade
Accrued rent receivable
Advances to CE-IS’s
stockholders
Other receivables
Refundable security deposits
Financial assets at FVOCI
On Demand
=355,500
P
166,686,553
2020
Less than
3 Months 3 to 12 Months
=
P
=
P
Over 1 Year
P
=
182,547,875
349,234,428
273,749
287,540,473
273,749
287,540,473
18,408,504
10,135,580
4,607,245
1,019,716
750,000
480,036
488,963,891
Total
P
=355,500
182,821,624
1,316,266
79,920
2,415,902
19,428,220
10,135,580
4,607,245
750,000
480,036
1,316,266
79,920
674,201,417
(Forward)
*SGVFS160539*
- 57 -
On Demand
Financial liabilities:
Accounts payable and accrued
expenses:
Accounts payable*
Accrued expenses
Payable to students
Deposits
Alumni fees payable
Dividends payable
Lease liability**
Net undiscounted financial assets
(liabilities)
2020
Less than
3 Months 3 to 12 Months
=277,081,005
P
25,925,785
16,516,181
14,173,546
4,502,910
105,755,874
–
443,955,301
=
P
34,317,454
=45,008,590
P
=148,504,170
P
34,317,454
Over 1 Year
=
P
–
234,000,000
234,000,000
P
=277,081,005
60,243,239
16,516,181
14,173,546
4,502,910
105,755,874
258,000,000
736,272,755
(P
=24,000,000) (P
=231,584,098)
(P
=62,071,338)
–
24,000,000
24,000,000
P
=
Total
* Excluding statutory payables amounting to =P 22,813,516
** Including interest to maturity amounting to =
P 65,498,240
The Group relies on internally-generated cash to fund its working capital needs, capital expenditures
and cash dividends. The Group will continuously assess its overhead costs to determine opportunities
to decrease them. As laid down in the Group’s strategic plan, the Group is committed to attain its
goal on sound financial position by accomplishing the objectives to implement cost saving measures,
increase income of existing revenue generating programs and activities and expand revenue
generating activities.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates.
The Group’s principal transactions are carried out in Peso and its exposure to foreign currency risk
arises primarily from cash in banks and short-term deposits that are denominated in United States
dollar ($ or USD).
To mitigate the Group’s exposure to foreign currency risk related to foreign currency-denominated
accounts, management keeps the amount of these assets at a low level.
The following table shows the foreign currency-denominated accounts of the Group as at
March 31, 2021 and 2020 in USD:
Cash in banks
Short-term deposits
2021
$15,629
117,783
$133,412
2020
$20,389
$117,171
$137,560
In translating the foreign currency-denominated accounts to Peso amounts, the exchange rate used
was =
P48.53 to $1.00 and =
P50.68 to $1.00 as at March 31, 2021 and 2020, respectively.
The table on the next page demonstrates the sensitivity to a reasonably possible change in the
Peso/USD exchange rate, with all other variables held constant, of the Group’s net income before tax.
There is no impact on the Group’s equity.
*SGVFS160539*
- 58 -
Percentage change in exchange rate
Effect on net income before tax
-2021
28.00%
-28.00%
1,812,856 (1,812,856)
2020
4.86%
-4.86%
=338,817
P
(P
=338,817)
Interest Rate Risk
The Group’s exposure to market risk for changes in interest rates is not significant to the consolidated
financial statements. The financial instruments of the Group are either
noninterest-bearing or has minimal interest rate exposure due to the short-term nature of the account
(that is, cash equivalents).
Capital Management
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital
ratios in order to support its business and maximize shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to
shareholders, return capital to shareholders or issue new shares. No changes were made to the
objectives and policies or processes during the years ended March 31, 2021, 2020 and 2019.
The Group monitors capital using a debt-to-equity ratio which is debt divided by total equity. Debt
includes accounts payable and other current liabilities and lease liability.
The table in the below shows how the Group computes for its debt-to-equity ratio as at
March 31, 2021 and 2020.
Accounts payable and other current liabilities
(Note 12)
Lease liability (Note 19)
Total debt (a)
Total equity (b)
Debt-to-equity ratio (a/b)
2021
2020
P
=544,991,642
179,142,645
P
=724,134,287
P
=4,537,989,892
P
=0:16:1
=572,226,528
P
192,501,760
=764,728,288
P
=4,434,328,320
P
=0.17:1
P
As of March 31, 2021 and 2020, the Group was able to meet its capital management objectives and
was successful in achieving its capital management policies.
27. Changes in Liabilities Arising from Financing Activities
Changes in the Group’s liabilities arising from financing activities are presented below:
2021
Lease liability Dividends payable
(Note 19)
(Note 13)
Balances at beginning
of year
Adoption of PFRS 16
Interest expense
(Notes 19 and 20)
2020
2019
Lease liability Dividends payable Dividends payable
(Note 19)
(Note 13)
(Note 13)
P
=192,501,760
−
P
=105,755,874
−
=−
P
205,121,481
P
=104,576,634
−
P
=107,787,994
−
10,640,885
−
11,380,279
−
−
(Forward)
*SGVFS160539*
- 59 2021
Lease liability Dividends payable
(Note 13)
(Note 19)
Dividend declaration
including dividends
to NCI (Note 13)
Cash payments
including dividends
to NCI (Note 13)
P
=−
(24,000,000)
P
=179,142,645
P
=3,975,000
(715,217)
P
=109,015,657
2020
2019
Lease liability Dividends payable Dividends payable
(Note 19)
(Note 13)
(Note 13)
=−
P
(24,000,000)
=192,501,760
P
P
=75,982,880
P
=76,107,880
(74,803,640)
P
=105,755,874
(79,319,240)
P
=104,576,634
28. Standards Issued but not yet Effective
Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the Group
does not expect that the future adoption to have a significant impact on its consolidated financial
statements.
Effective beginning on or after January 1, 2021
 Amendments to PFRS 9, PFRS 7, PFRS 4 and PFRS 16, Interest Rate Benchmark Reform
– Phase 2
Effective beginning on or after January 1, 2022
 Amendments to PFRS 3, Reference to the Conceptual Framework
 Amendments to PAS 16, Plant and Equipment: Proceeds before Intended Use
 Amendments to PAS 37, Onerous Contracts – Costs of Fulfilling a Contract
 Annual Improvements to PFRSs 2018-2020 Cycle
 Amendments to PFRS 1, First-time Adoption of Philippines Financial Reporting Standards,
Subsidiary as a first-time adopter
 Amendments to PFRS 9, Financial Instruments, Fees in the ’10 per cent’ test for
derecognition of financial liabilities
 Amendments to PAS 41, Agriculture, Taxation in fair value measurements
Effective beginning on or after January 1, 2023
 Amendments to PAS 1, Classification of Liabilities as Current or Non-current
 PFRS 17, Insurance Contracts
Deferred effectivity
 Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
The Group continues to assess the impact of the above new and amended accounting standards and
interpretations effective subsequent to March 31, 2021 on the Group’s financial statements in the period
of initial application. Additional disclosures required by these amendments will be included in the
financial statements when these amendments are adopted.
29. Other Matters
COVID-19 Outbreak
In March 13, 2020, in a move to contain the COVID-19 outbreak, the Office of the President of the
Philippines issued a Memorandum directive to impose stringent social distancing measures in the
National Capital Region effective March 15, 2020.
*SGVFS160539*
- 60 -
On March 16, 2020, Presidential Proclamation No. 929 was issued, declaring a State of Calamity
throughout the Philippines for a period of six (6) months and imposed an Enhanced Community
Quarantine (ECQ) throughout the island of Luzon until April 12, 2020, which was subsequently
extended to April 30, 2020 and further extended until May 15, 2020. The ECQ shifted to modified
enhanced community quarantine (MECQ) until May 31, 2020 and to general community quarantine
(GCQ) for NCR and certain provinces until the first part of the third quarter.
Subsequently, MECQ was once again imposed on select areas including Metro Manila and few other
provinces in the Philippines from August 4 to 18, 2020, then back again to GCQ until
March 28, 2021.
Due to the exponential rise in COVID-19 cases, the Office of the President once again imposed ECQ
for Metro Manila, Bulacan, Cavite, Laguna and Rizal from March 29, 2021 to April 4, 2021.
Afterwards, ECQ was shifted to MECQ until May 14, 2021. Subsequently, MECQ was shifted to
GCQ until July 30, 2021.
The COVID-19 pandemic has caused disruptions in the Group’s business activities. As this global
problem evolves, the Group will continually adapt and adjust its business model according to the
business environment in the areas where the Group operates, in full cooperation with the national and
local government units.
*SGVFS160539*
CENTRO ESCOLAR UNIVERSITY
ANNEX 68-E: SCHEDULE OF FINANCIAL SOUNDNESS INDICATORS
Ratio
Current
Formula
Current assets over current liabilities
2021
1.23:1.00
2020
0.98:1.00
2019
0.99:1.00
Acid-test ratio
Quick assets (Current assets less
inventories and other current
assets) over current liabilities
1.13:1.00
0.88:1.00
0.85:1.00
Solvency ratio
Earnings after tax plus non-cash
expenses over total liabilities
0.21:1.00
0.17:1.00
0.27:1.00
Debt-to-equity ratio
Total liabilities over total equity
0.34:1.00
0.35:1.00
0.24:1.00
Asset-to-equity ratio
Total assets over total equity
1.34:1.00
1.35:1.00
1.24:1.00
Interest rate coverage ratio
Income before interest and tax over
interest payments
13.07
times
5.84
times
N/A
Return on equity
Net income over total equity
3%
2%
4%
Return on assets
Net income over total assets
3%
1%
3%
Net profit margin
Net income over total revenue
14%
5%
12%
CENTRO ESCOLAR UNIVERSITY
INDEX TO THE FINANCIAL STATEMENTS AND SUPPLEMENTARY
SCHEDULES
Annex I:
The map showing the relationships between and among the University and its
subsidiaries
Annex II:
Supplementary schedules to consolidated financial statements
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
THE MAP SHOWING THE RELATIONSHIPS BETWEEN AND AMONG THE UNIVERSITY AND ITS SUBSIDIARIES
MARCH 31, 2021
CENTRO ESCOLAR UNIVERSITY
(Parent Company)
CEU Hospital, Inc.
(Subsidiary)
100.00%
ownership
Centro Escolas Las Piñas, Inc.
(formerly Las Piñas College)
(Subsidiary)
99.90%
ownership
Centro Escolar Integrated School,
Inc.
(Subsidiary)
94.00%
ownership
Centro Escolar University
Schedule A - Financial Assets
March 31, 2021
Name of Issuing entity and association of each issue
Investments at FVOCI
PLDT- Common
Number of shares or
principal amount of bonds
and notes
9,953
Amount shown in the
statement of financial
position
=87,912
P
Valued based on
market quotation at
end of reporting
period
=87,912
P
Loss incurred
(Income
received)
(P
=7,992)
Centro Escolar University
Schedule B - Amounts Receivable from Directors, Officers, Employees and Principal Stockholders (Other than Affiliates)*
March 31, 2021
Deductions
Name and Designation of debtor
Housing Loan
Agno, Cirila - Non-teaching Staff
Housing Loan
Rosales, Ricky - Middle Manager
Travel Loan
Quita, Jennifer - Faculty
Cruz, Bessie - Faculty
Fajardo, Erlinda - Faculty
Nuguid, Virginia - Faculty
Guerrero, Edna - Faculty
Lumarque, Lilian - Faculty
Co, Welyn - Faculty
Separo, Perla - Faculty
Suto, Vivian - Faculty
Villamor, Janelle - Faculty
So, Rosemarie - Faculty
Albano, Heidi Rosario - Faculty
De Leon, Julius - Faculty
Galang, Sharon - Faculty
Duad, Nadine - Faculty
Ramirez, Eufrecina - Faculty
Raqueño, Avelina - Faculty
Anacio, Marcial - Faculty
Villanueva, Jean Marie - Faculty
Villanueva, Angelina - Faculty
(Forward)
Balance at
beginning of
period
Additions
=
P12,500
–
97,483
97,483
97,483
97,483
97,483
100,048
97,483
97,483
97,483
112,875
130,832
69,944
61,072
61,072
61,072
67,858
61,072
63,334
63,334
63,334
=
P−
300,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Amounts
collected
Ending Balance
Amounts
written off
Current
Not current
Balance at
end of
period
=
P12,500
=
P−
=
P–
=
P−
=
P–
39,424
–
94,618
165,958
260,576
56,437
61,568
56,437
35,915
35,915
38,480
35,915
35,915
92,352
51,307
89,787
22,222
6,784
6,784
6,784
67,858
6,784
33,928
9,046
9,046
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
56,437
61,568
56,437
35,915
35,915
38,480
35,915
35,915
92,352
51,307
89,787
22,222
6,784
6,784
6,784
67,858
6,784
33,928
9,046
9,046
41,046
35,915
41,046
61,568
61,568
61,568
61,568
61,568
5,131
61,568
41,045
47,722
54,288
54,288
54,288
–
54,288
29,406
54,288
54,288
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Deductions
Name and Designation of debtor
Dee, Annabelle - Faculty
Mijarez, Luzette - Faculty
Clemente, Maria Luisa - Faculty
Recto, Perpetua Socorro - Faculty
Cortado, Christopher Jay - Faculty
Andoy, Maria Corazon - Faculty
Dizon, Maria Carmen - Faculty
Fabian, Bella Marie - AVP Admin
Orlina, Jericho AVP - Business Affairs
Olaer, Carlito - VP Student Affairs
Huan, Edwin - Faculty
Grino, Nicanor Jerry Head - Security Dept.
Roldan, Rita - Faculty
Garcia, Nancy - Faculty
Martinez, Claire - Faculty
Flores, Jocelyn Sofia - Faculty
Fule, Jocelyn Andrea - Faculty
Martinez, Maria Wanda - Faculty
CE-IS Stockholders
Ma. Cristina D. Padolina - President
Corazon M. Tiongco
Balance at
beginning of
period
Amounts
collected
Additions
=
P63,334
63,334
61,072
61,072
41,985
61,072
61,072
61,072
61,072
61,072
140,553
109,853
50,928
109,854
109,854
107,215
107,215
111,284
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
250,000
250,000
−
−
=
P3,651,124
=
P300,000
Amounts
written off
=
P6,897
54,288
54,288
54,288
–
31,668
31,668
31,668
31,668
31,668
–
56,961
45,630
97,648
97,648
32,549
73,235
56,961
−
−
=
P1,777,104
Note: *This schedule pertains to advances originally made amounting to =
P100,000 and above only.
Ending Balance
Current
Not current
Balance at
end of
period
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
=
P56,437
9,046
6,784
6,784
41,985
29,404
29,404
29,404
29,404
29,404
140,553
52,892
5,298
12,206
12,206
74,666
33,980
54,323
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
=
P56,437
9,046
6,784
6,784
41,985
29,404
29,404
29,404
29,404
29,404
140,553
52,892
5,298
12,206
12,206
74,666
33,980
54,323
−
−
250,000
250,000
−
−
250,000
250,000
–
=
P2,008,062
=
P165,958
=
P2,174,020
Centro Escolar University
Schedule C - Amounts Receivable from Related Parties which are eliminated during the Consolidation of financial assets
March 31, 2021
Name of Related Companies
Centro Escolar Las Piñas, Inc.
Centro Escolar Integrated School, Inc.
Centro Escolar University Hospital, Inc.
TOTAL
Balance at beginning
of period
Additions
Deductions
Amounts written
Amounts collected
off
Ending balance
Current
Not current
=92,739,059
P
15,280,410
10,116,855
=38,884,384
P
5,359,191
1,675,144
=–
P
–
–
=–
P
–
–
=131,623,443
P
20,600,324
11,791,999
=–
P
–
–
=118,136,324
P
=45,918,719
P
=–
P
=–
P
=164,015,766
P
=–
P
Centro Escolar University
Schedule D - Intangible Assets - Other Assets
March 31, 2021
Description
Goodwill
Software
TOTAL
Beginning balance
Additions at cost
=47,605,695
P
61,250
=47,666,945
P
P–
=
3,180,000
=3,180,000
P
Charged to cost and
expenses
=–
P
1,139,205
=1,139,205
P
Charged to other
Other changes
accounts
Additions (deductions)
=–
P
=–
P
–
–
=
P–
=–
P
Ending balance
=
P47,605,695
2,102,045
=
P49,707,740
Centro Escolar University
Schedule E - Long-term Debt
March 31, 2021
Title of Issue and Type of Obligation
Lease liability
Amount Authorized by Indenture
Not applicable
Amount shown under caption “Current
portion of Long-term debt” in related
consolidated statement of financial
position
=14,141,832
P
Amount shown under caption
“Long-term Debt” in related
consolidated statement of
financial position
=165,000,813
P
Centro Escolar University
Schedule F - Indebtedness to Related Parties (Long-Term Loans from Related Companies)
March 31, 2021
Name of Related Companies
Balance at beginning
of period
The University does not have long-term loans from related parties.
Additions
Deductions
Amounts written
Amounts paid
off
Ending balance
Current
Not current
Centro Escolar University
Schedule G - Guarantees of Securities of Other Issuers
March 31, 2021
Name of issuing entity of
securities guaranteed by the
company for which this
statement is filed
Title of issue of each class of
securities guaranteed
Total amount guaranteed and
outstanding
As at March 31, 2021, the University has no guaranteed securities by other issuers.
Amount owned by persons
for which statement is filed
Nature of guarantee
Centro Escolar University
Schedule H - Capital Stock
March 31, 2021
Title of issue
Centro Escolar University
Number of shares held by
Number of shares
issued and
Number of shares
outstanding as
Directors,
Number of shares
reserved for options,
shown under the
Related parties officers and
Others
authorized
warrants, conversion
related statement of
employees
and other rights
financial position
caption
800,000,000
372,414,400
−
212,270,987
60,576,437
99,566,976
CENTRO ESCOLAR UNIVERSITY
SUPPLEMENTARY SCHEDULE OF RETAINED EARNINGS AVAILABLE
FOR DIVIDEND DECLARATION
MARCH 31, 2021
Unappropriated parent company retained earnings, beginning of year
Add: Net income actually earned/realized during the fiscal year
Unappropriated parent company retained earnings, as adjusted before dividend
declaration
Deduct: Appropriation of retained earnings during the period
Unappropriated parent company retained earnings, as adjusted to available for
dividend declaration, end of year
=612,463,224
P
169,326,606
781,789,830
(336,000,000)
=445,789,830
P
Note: In accordance with SEC Financial Reporting Bulletin No. 14, the reconciliation is based on the separate/parent
company financial statements of Centro Escolar University.
7/29/2021
Centro Escolar University Manila Mail - Your BIR AFS eSubmission uploads were received
Benjamin Roman <benr@ceu.edu.ph>
Your BIR AFS eSubmission uploads were received
1 message
eafs@bir.gov.ph <eafs@bir.gov.ph>
To: BENR@ceu.edu.ph
Cc: BENR@ceu.edu.ph
Thu, Jul 29, 2021 at 7:57 PM
Hi CENTRO ESCOLAR UNIVERSITY,
Valid files
EAFS000531126TCRTY032021-01.pdf
EAFS000531126ITRTY032021.pdf
EAFS000531126AFSTY032021.pdf
EAFS000531126OTHTY032021.pdf
EAFS000531126RPTTY032021.pdf
Invalid file
<None>
Transaction Code: AFS-0-6F57LLD602VYSVXMYNWZRQYVZ0A9HAJHH8
Submission Date/Time: Jul 29, 2021 07:57 PM
Company TIN: 000-531-126
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and certify that:
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https://mail.google.com/mail/u/0?ik=39bad665c5&view=pt&search=all&permthid=thread-f%3A1706621085790945946&simpl=msg-f%3A17066210857…
1/1
BIR Form No. 1702MXv2018
Annual Income Tax Return
BIR Form No.
Corporation, Partnership and Other Non-Individual
with MIXED Income Subject to Multiple Income Tax Rates or
with Income Subject to SPECIAL/PREFERENTIAL RATE
1702-MX
January 2018 (ENCS)
Page 1
Enter all required information in CAPITAL LETTERS using BLACK ink. Mark applicable boxes with an
“X”.
Two copies MUST be filed with the BIR and one held by the taxpayer.
Calendar
1 For
Fiscal
2 Year Ended (MM/20YY)
03
Page 1 of 1
/20 21
4 Short Period Return?
3 Amended Return?
Yes
Yes
No
1702-MX 01/18ENCS P1
5 Alphanumeric Tax Code (ATC)
No
IC 055 – Minimum Corporate Income Tax (MCIT)
IC 010 - In General
Part I - Background Information
6 Taxpayer Identification Number (TIN)
000
- - 531
126
7 RDO Code
00000
127
8 Registered Name (Enter only 1 letter per box using CAPITAL LETTERS)
CENTRO ESCOLAR UNIVERSITY
9 Registered Address (Indicate complete address. If the registered address is different from the current address, go to the RDO to update registered address by using
BIR Form No. 1905)
9 MENDIOLA ST. SAN MIGUEL MANILA
9A ZIP
Code
10 Date of Incorporation/Organization
(MM/DD/YYYY)
12 Email Address
11 Contact Number
03/31/1932
1005
87356859
benr@ceu.edu.ph
13 Method of Deductions
Optional Standard Deduction (OSD)-40% of Gross Income[Section
Itemized Deductions [Section 34 (A-J), NIRC]
NIRC, as amended]
34(L)
(Do NOT enter Centavos; 49 Centavos or Less drop down; 50 or more
Part II - Total Tax Payable
round up)
14 Total Tax Due/(Overpayment) (From Part IV-Schedule 2 Item 19D)
6,004,367
15 Less: Total Tax Credits/Payments (From Part IV-Schedule 3 Item 32D)
17,380,347
16 Net Tax Payable / (Overpayment) (Item 14 Less Item 15) (From Part IV Item 33D)
(11,375,980)
Add: Penalties
17 Surcharge
0
18 Interest
0
19 Compromise
0
20 Total Penalties (Sum of Items 17 to 19)
0
21 TOTAL AMOUNT PAYABLE / (Overpayment) (Sum of Items 16 to 20)
(11,375,980)
If overpayment, mark one (1) box only. (Once the choice is made, the same is irrevocable)
To be refunded
To be issued a Tax Credit Certificate (TCC)
To be carried over as a tax credit for next year/quarter
We declare under the penalties of perjury that this return, and all its attachments, have been made in good faith, verified by us, and to the best of our knowledge and belief, are true and correct, pursuant to the provisions of the National Internal Revenue
Code, as amended, and the regulations issued under authority thereof. (If signed by an Authorized Representative, indicate TIN and attach authorization letter)
22
Number of
Attachments
00
Signature over Printed Name of President/Principal Officer/Authorized Representative
Title of Signatory
Particulars
23 Cash/Bank Debit Memo
TIN
Signature over Printed Name of Treasurer/ Assisant Treasurer
Title of Signatory
TIN
Part III - Details of Payment
Drawee Bank/Agency
Number
Date (MM/DD/YYYY)
Amount
0
24 Check
0
25 Tax Debit Memo
26 Others (Specify Below)
0
0
Machine Validation / Revenue Official Receipt Details (if not filed with an Authorized Agent Bank)
Stamp of Receiving Office/AAB and
Date of Receipt
(RO's Signature/Bank Teller's Initial)
file:///C:/Users/teacher3477/AppData/Local/Temp/%7BACA73A24-12E9-4142-92EC-... 7/29/2021
BIR Form No. 1702MXv2018
Annual Income Tax Return
BIR Form No.
1702-MX
January 2018 (ENCS)
Page 2
Page 2 of 3
Corporation, Partnership and Other Non-Individual
with MIXED Income Subject to Multiple Income Tax Rates or
with Income Subject to SPECIAL/PREFERENTIAL RATE
Taxpayer Identification Number (TIN)
000
531
126
1702-MX 01/18ENCS P2
Registered Name
00000
CENTRO ESCOLAR UNIVERSITY
Part IV - Schedules
A. Only one activity/project under EXEMPT and/or SPECIAL Tax Regimes, fill-out the applicable columns below.
Instructions:
(mark appropriate box)
B. Two or more activities/projects under EXEMPT and/or SPECIAL Tax Regimes, accomplish Part V-Mandatory Attachments per activity
and reflect consolidated amounts from Part V on the corresponding columns below.
Schedule 1 - Basis of Tax Relief
Particulars
A. Exempt
C. Special Tax Relief
B. Special
1
Investment Promotion Agency (IPA)/
Implementing Government Agency
NIRC
2
3
4
5
Legal Basis
RA 11534
Registered Activity/Program (Reg. No.)
EDUCATION
Effectivity Date of Tax Relief/Exemption
From (MM/DD/YYYY)
04/01/2020
6
Expiration Date of Tax Relief/Exemption
To (MM/DD/YYYY)
03/31/2021
(Under Regular/Normal Rate)
Special Tax Rate
10.0
Schedule 2 – Computation of Income Tax per Tax Regime
%
(DO NOT enter Centavos; 49 Centavos or Less drop down; 50 or more round up)
Description
D. Total All
Columns
A. Total Exempt B. Total Special C. Total Regular
1
Sales/Receipts/Revenues/Fees
0
2
Less: Sales Returns, Allowances and Discounts
3
Net Sales/Receipts/Revenues/Fees
4
5
6
993,468,403
0
0
0
0
0
0
993,468,403
0
993,468,403
Less: Cost of Sales/Services
0
694,808,620
0
694,808,620
Gross Income from Operation (Item 3 Less Item 4)
0
298,659,783
0
298,659,783
Add: Other Taxable Income not subjected to Final Tax
0
0
0
0
7
Total Taxable Income (Sum of Items 5 and 6)
0
298,659,783
0
298,659,783
8
marked)
0
101,527,250
0
101,527,250
0
0
0
0
12,382,785
0
12,382,785
0
113,910,035
0
113,910,035
0
184,749,748
(From all of Part V-Sched B Item 1, if letter B of instructions above is marked)
(From all of Part V-Sched B Item 2, if letter B of instructions above is marked)
(Item 1 Less Item 2)
(From all of Part V-Sched B Item 4, if letter B of instructions above is marked)
(From all of Part V-Sched B Item 6, if letter B of instructions above is marked)
Less: Deductions Allowable under Existing Law
Ordinary Allowable Itemized Deductions (From Sched 5 Item 18) &/or (From all of Part V-Sched B Item 8, if letter B of instructions above is
9
Special Allowable Itemized Deductions
(From Sched 6 Item 5) &/or(From all of Part V-Sched B Item 9, if letter B of instructions above is marked)
10 NOLCO [Only for those taxable under Sec. 27 (A to C)]; Section 28(A)(1)(A)(6)(b) of the Tax Code, as amended]
( For Special Rate: If w/ only 1 activity, From Schedule 8.1 Item 8 ; if with 2 or more activities, From all of Part V-Sched B Item 10; For Reg. Rate: From
Sched 7.1 Item 8)
11 Total Itemized Deductions (Sum of Items 8 to 10)
993,468,403
OR [in case taxable under Sec 27(A) & 28(A)(1)]
12 Optional Standard Deduction (OSD) (40% of Item 7)
13 Net Taxable Income/(Loss)
(If Itemized: Item 7 Less Item 11; If OSD: Item 7 Less Item 12)
14 Applicable Income Tax Rate
0%
(i.e. Special or Regular/Normal Rate)
15 Income Tax Due other than MCIT [For Special Rate: If with only 1 activity, (Item 3 OR Item 7) X Item 14; if with 2 or more activities, from all of
Part V-Sched B Item 14; For Regular Rate Item 13 X Item 14 ]
16 Less: Share of Other Government Agency,
if remitted directly
17 Net Income Tax Due to National
Government (Item 15 Less Item 16)
3.25
%
0
%
6,004,367
0
0
6,004,367
15C OR MCIT in Item 18C, whichever is higher) (Item 18D =
184,749,748
0
6,004,367
18 MCIT (2% of Gross Income in Item 7)
Income Tax Due / (Overpayment)
19 Total
(Item 19B = Item 17B) (Item 19C = Normal Income Tax in Item
0
0
0.00
6,004,367
0
0
0
6,004,367
0
0
0
6,004,367
Sum of Items 19B and 19C) (Item 19D to Part II Item 14)
Schedule 3 - Tax Credits/Payments (attach proof)
20 Prior Year's Excess Credits Other Than MCIT
21 Income Tax Payments under MCIT from Previous Quarter/s
22 Income Tax Payments under Regular Rate from Previous Quarter/s
23 Excess MCIT Applied this Current Taxable Year
(From Schedule 9 Item 4)
24 Creditable Tax Withheld from Previous Quarter/s per BIR Form No. 2307
25 Creditable Tax Withheld per BIR Form No. 2307 for the 4th Qtr
26 Foreign Tax Credits, if applicable
27 Tax Paid in Return Previously Filed, if this is an Amended Return
28 Income Tax Payments under Special Rate from Previous Qtr/s
29 Special Tax Credits (To Part IV-Schedule 4 Item 6)
0
0
13,695,420
3,638,414
0
13,695,420
0
0
0
3,638,414
0
0
0
0
0
0
0
46,513
0
46,513
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
00
0
0
0
00
0
17,380,347
0
17,380,347
Other Tax Credits/Payments(specify)
30
31
(Add more...)
32 Total Tax Credits/Payments
(Sum of Items 20 to 31) (Item 32D to Part II Item 15)
file:///C:/Users/teacher3477/AppData/Local/Temp/%7BACA73A24-12E9-4142-92EC-... 7/29/2021
BIR Form No. 1702MXv2018
33Net Tax Payable / (Overpayment)
(Item 19 Less Item 32) (Item 33D to Part II Item 16)
Page 3 of 3
0
(11,375,980)
0
(11,375,980)
file:///C:/Users/teacher3477/AppData/Local/Temp/%7BACA73A24-12E9-4142-92EC-... 7/29/2021
BIR Form No. 1702MXv2018
Page 1 of 1
Annual Income Tax Return
BIR Form No.
1702-MX
Corporation, Partnership and Other Non-Individual
with MIXED Income Subject to Multiple Income Tax Rates or
with Income Subject to SPECIAL/PREFERENTIAL RATE
January 2018 (ENCS)
Page 3
Taxpayer Identification Number (TIN)
000
531
126
1702-MX 01/18ENCS P3
Registered Name
00000
CENTRO ESCOLAR UNIVERSITY
Schedule 4 – Tax Relief Availment
(DO NOT enter Centavos; 49 Centavos or Less drop down; 50 or more round up)
Description
A. Total Exempt
B. Total Special
C. Total Regular
D. Total All Columns
1
Regular Income Tax Otherwise Due (Item 13A/B of Part IVSchedule 2 X applicable regular income tax rate)
0
18,474,974
2
Tax Relief on Special Allowable Itemized Deductions
(Item 9A/B/C of Part IV-Sched 2 X applicable regular income tax
rate)
0
0
0
0
3
4
Sub-Total – Tax Relief (Sum of Items 1 and 2)
0
18,474,974
0
18,474,974
5
Tax Relief Availment before Special Tax Credit
(Item 3 Less Item 4)
0
6
Add: Special Tax Credit,if any
(From Part IV-Schedule 3 Item 29)
7
Total Tax Relief Availment (Sum of Items 5 & 6)
Less: Income Tax Due
(From Part IV-Schedule 2 Item 15B)
0
18,474,974
6,004,367
6,004,367
12,470,607
0
12,470,607
0
0
0
0
0
12,470,607
0
12,470,607
Schedule 5 - Ordinary Allowable Itemized Deductions (attach additional sheet/s, if necessary)
(If with only one activity, fill-out the applicable columns below: if with two or more activities, amount for each expense shall come from all of Part V-Schedule D)
1 Amortizations
2 Bad Debts
3 Charitable and Other Contributions
4 Depletion
5 Depreciation
6 Entertainment, Amusement and Recreation
7 Fringe Benefits
8 Interest
9 Losses
10 Pension Trusts
11 Rental
12 Research and Development
13 Salaries, Wages and Allowances
14 SSS, GSIS, Philhealth, HDMF and Other Contributions
15 Taxes and Licenses
16 Transportation and Travel
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10,140,605
0
10,140,605
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20,682,312
0
20,682,312
0
19,500,746
0
19,500,746
a. Janitorial and Messengerial Services
0
9,754,171
0
9,754,171
b. Professional Fees
0
0
0
0
c. Security Services
0
12,743,978
0
12,743,978
d.
REPAIRS AND MAINTENANCE
0
10,748,557
0
10,748,557
10,748,557
e.
CLINICAL EXPENSES
0
9,441,177
0
9,441,177
9,441,177
f.
INSURANCE
0
3,119,745
0
3,119,745
3,119,745
g.
MEMBERSHIP
0
1,482,812
0
1,482,812
1,482,812
h.
BANK CHARGES
0
27,747
0
27,747
27,747
0
3,885,400
0
3,885,400
3,885,400
0
101,527,250
0
101,527,250
17 Others (Deductions Subject to Withholding Tax and Other Expenses) [Specify below; Add additional sheet(s), if necessary]
i.
OTHERS
(Add more...)
18 Total Ordinary Allowable Itemized Deductions
(Sum of Items 1 to 17i) (To Part IV-Schedule 2 Item 8)
Schedule 6 – Special Allowable Itemized Deductions (attach additional sheet/s, if necessary)
(If with only one activity, fill-out the applicable columns below: if with two or more activities, amount for each expense shall come from all of Part V-Schedule E)
Description
Legal Basis
A. Total Exempt
B. Total Special
C. Total Regular
D. Total All Columns
1
0
0
0
0
2
0
0
0
0
3
0
0
0
0
4
0
0
0
0
0
0
0
0
(Add
(Add more...)
more...)
5 Total Special Allowable Itemized Deductions
(Sum of Items 1 to 4) (To Part IV-Schedule 2 Item 9)
Schedule 7 - Computation of Net Operating Loss Carry Over (NOLCO) for Regular Rate
1 Gross Income (From Part IV-Schedule 2 Item 7C)
2 Less: Total Deductions Exclusive of NOLCO & Deduction Under Special Law
(From Part IV-Schedule 2 Item 8C)
3 Net Operating Loss (Item 1 Less Item 2) (To Part IV-Schedule 7.1, Item 7A)
(Attach Additional Sheet/s, if necessary)
0
0
0
file:///C:/Users/teacher3477/AppData/Local/Temp/%7BACA73A24-12E9-4142-92EC-... 7/29/2021
BIR Form No. 1702MXv2018
Page 1 of 1
Annual Income Tax Return
BIR Form No.
1702-MX
Corporation, Partnership and Other Non-Individual
with MIXED Income Subject to Multiple Income Tax Rates or
with Income Subject to SPECIAL/PREFERENTIAL RATE
January 2018 (ENCS)
Page 4
Taxpayer Identification Number (TIN)
000
531
126
1702-MX 01/18ENCS P4
Registered Name
00000
CENTRO ESCOLAR UNIVERSITY
Schedule 7.1 - Computation of Available Net Operating Loss Carry Over (NOLCO) for Regular Rate
(DO NOT enter Centavos;49 Centavos or Less drop down; 50 or more round up)
Net Operating Loss
Year Incurred
A. Amount
B. NOLCO Applied
Previous Year/s
E. Net Operating Loss
(Unapplied)
[(E)=A-(B+C+D)]
D. NOLCO Applied
Current Year
C. NOLCO Expired
4
0.00
0
0
0
0
5
0
0
0
0
0
6
0
0
0
0
0
7
0
0
0
0
0
0
8 Total NOLCO (Sum of Items 4D to 7D) (To Part IV-Schedule 2 Item 10C)
Schedule 8 - Computation of Net Operating Loss Carry Over (NOLCO) for Special Rate (except those availing fiscal incentives)
(Attach Additional Sheet/s, if necessary)
1 Gross Income (From Part IV-Schedule 2 Item 7B)
2 Less: Ordinary Allowable Itemized Deductions (From Part IV-Schedule 2 Item 8B)
3 Net Operating Loss (Item 1 Less Item 2) (To Part IV-Schedule 8.1 Item 7A)
0
0
0
Schedule 8.1 - Computation of Available Net Operating Loss Carry Over (NOLCO) for Special Rate
(DO NOT enter Centavos;49 Centavos or Less drop down; 50 or more round up)
Net Operating Loss
Year Incurred
A. Amount
B. NOLCO Applied
Previous Year/s
4
2020
9,411,103.00
0.00
0.00
9,411,103.00
0
5
2019
109,185,790.00
106,214,108.00
0.00
2,971,682.00
0
6
0
0
0
0
0
7
0
0
0
0
0
8 Total NOLCO (Sum of Items 4D to 7D) (To Part IV-Schedule 2 Item 10B)
Schedule 9 - Computation of Minimum Corporate Income Tax (MCIT)
Year
1
2
3
E. Net Operating Loss
(Unapplied)
[(E)=A-(B+C+D)]
D. NOLCO Applied
Current Year
C. NOLCO Expired
A) Normal Income Tax as Adjusted
12,382,785
C) Excess MCIT over Normal Income
Tax
B) MCIT
0
0
0
0
0
0
0
0
0
Continuation of Schedule 9 (Item
numbers continue from table above)
D) Excess MCIT Applied/Used for
E) Expired Portion of
Previous Years
Excess MCIT
F) Excess MCIT Applied this
Current Taxable Year
0
0
1
0
0
2
0
0
3
4 Total Excess MCIT Applied (Sum of Items 1F to 3F) (To Part IV-Schedule 3 Item 23)
G) Balance of Excess MCIT Allowable as Tax
Credit for Succeeding Year/s
[ G = C Less (D + E + F) ]
0
0
0
0
0
0
0
Schedule 10 – Reconciliation of Net Income per Books Against Taxable Income (attach additional sheet/s, if necessary)
A. Total
Exempt
Particulars
1
2
3
4
5
6
7
8
Net Income/(Loss) per Books
B. Total
Special
0
C. Total
Regular
D. Total All
Columns
169,326,606
0
169,326,606
Add: Non-Deductible Expenses/Taxable Other Income) (specify below)
NON DEDUCTIBE EAR
0
47,753
0
47,753
47,753
OTHERS
0
283,984,462
0
283,984,462
283,984,462
0
453,358,821
0
453,358,821
(Add
(Add more...)
more...)
Total (Sum of Items 1 to 3)
Less: A) Non-Taxable Income and Income Subjected to Final Tax (specify below)
INTEREST INCOME
0
2,656,524
0
2,656,524
2,656,524
OTHERS
0
90,034,186
0
90,034,186
90,034,186
B) Special Deductions (specify below)
(Add
(Add more...)
more...)
AMORT PSC
0
10,915,944
0
10,915,944
10,915,944
OTHERS
0
165,002,419
0
165,002,419
165,002,419
0
268,609,073
0
268,609,073
0
184,749,748
0
184,749,748
9 Total (Sum of Items 5 to 8)
10 Net Taxable Income/(Loss) (Item 4 Less Item 9)
(Add
(Add more...)
more...)
file:///C:/Users/teacher3477/AppData/Local/Temp/%7BACA73A24-12E9-4142-92EC-... 7/29/2021
Centro Escolar University Manila Mail - Fwd: Tax Return Receipt Conf...
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Efren Santos <evsantos@ceu.edu.ph>
Fwd: Tax Return Receipt Confirmation
Benjamin Roman <benr@ceu.edu.ph>
To: EFREN SANTOS <evsantos@ceu.edu.ph>
Thu, Jul 29, 2021 at 5:57 PM
Best Regards,
---------- Forwarded message --------From: <ebirforms-noreply@bir.gov.ph>
Date: Thu, Jul 29, 2021 at 5:56 PM
Subject: Tax Return Receipt Confirmation
To: <benr@ceu.edu.ph>
This confirms receipt of your submission with the following details subject to validation by BIR:
File name:
000531126000-1702MXv2018C-0321V1.xml
Date received by BIR: 29 July 2021
Time received by BIR: 05:42 PM
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07/29/2021, 6:34 pm
Centro Escolar University Manila Mail - Fwd: Tax Return Receipt Conf...
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have received this email in error.
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of e-mail transmission.
07/29/2021, 6:34 pm
COVER
SHEET
for
AUDITED FINANCIAL STATEMENTS
SEC Registration Number
P W 1 0 9 3
COMPANY NAME
C E N T R O
E S C O L A R
U N I V E R S I T Y
A N D
S U B S I D I A R I E S
PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province )
9
M E N D I O L A
S T R E E T ,
S A N
M I G U E L ,
M A N I L A
Form Type
Department requiring the report
Secondary License Type, If Applicable
A C F S
C R M D
N A
COMPANY INFORMATION
Company’s Email Address
Company’s Telephone Number
Mobile Number
ceu.edu.ph
8735-5991
09279276089
No. of Stockholders
Annual Meeting (Month / Day)
Fiscal Year (Month / Day)
1,010
th
4 week of October
5/31
CONTACT PERSON INFORMATION
The designated contact person MUST be an Officer of the Corporation
Name of Contact Person
Email Address
Telephone Number/s
Mobile Number
Cesar F. Tan
cftan@ceu.edu.ph
8735-5991
09279276089
CONTACT PERSON’s ADDRESS
9 Mendiola Street, San Miguel, Manila
NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within
thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.
2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission
and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.
*SGVFS161303*
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 8891 0307
Fax: (632) 8819 0872
ey.com/ph
BOA/PRC Reg. No. 0001,
August 25, 2021, valid until April 15, 2024
SEC Accreditation No. 0012-FR-5 (Group A),
November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT
The Stockholders and the Board of Directors
Centro Escolar University
9 Mendiola Street
San Miguel, Manila
Opinion
We have audited the consolidated financial statements of Centro Escolar University (the “University”)
and its subsidiaries (the “Group”), which comprise the consolidated statements of financial position as at
May 31, 2021 and March 31, 2021, and the consolidated statements of income, consolidated statements of
comprehensive income, consolidated statements of changes in equity and consolidated statements of cash
flows for the two months ended May 31, 2021 and for the years ended March 31, 2021 and 2020, and
notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at May 31, 2021 and March 31, 2021, and its
consolidated financial performance and its consolidated cash flows for the two months ended
May 31, 2021 and for the years ended March 31, 2021 and 2020, in accordance with Philippine Financial
Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with the Code of Ethics for Professional Accountants in the Philippines (the “Code of Ethics”)
together with the ethical requirements that are relevant to our audit of the consolidated financial
statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of
the risks of material misstatement of the consolidated financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying consolidated financial statements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
*SGVFS161303*
A member firm of Ernst & Young Global Limited
-2-
Adequacy of Allowance for Expected Credit Loss (ECL)
The Group applies simplified approach in calculating expected credit loss (ECL). Under this approach,
the Group establishes a provision matrix that is based on its historical credit loss experience and adjusted
for forward-looking factors and the economic environment. Allowance for credit losses and the provision
for credit losses as of and for the two months ended May 31, 2021 amounted to =
P125.04 million and
=
P6.02 million, respectively. The use of the ECL model is significant to our audit as it involves the
exercise of significant management judgment. Key areas of judgment include: segmenting the Group’s
credit risk exposures; defining default; determining assumptions to be used in the ECL model such as
timing and amounts of expected net recoveries from defaulted accounts; and incorporating forwardlooking information (called overlays), including the impact of coronavirus pandemic, in calculating ECL.
The disclosures on the allowance for ECL are included in Notes 2, 3 and 6 to the consolidated financial
statements.
Audit Response
We updated our understanding of the approved methodology used for the Group’s different credit
exposures and reassessed whether these considered the requirements of PFRS 9 to reflect an unbiased and
probability-weighted outcome and the best available forward-looking information.
We (a) assessed the Group’s segmentation of its credit risk exposures based on homogeneity of credit risk
characteristics; (b) compared the definition of default against historical analysis of account and credit risk
management policies and practices in place and management’s assessment of the effect of the coronavirus
pandemic; (c) tested historical loss rates by inspecting historical recoveries and write-offs; (d) checked the
classification of outstanding exposures to their corresponding aging buckets; and (e) checked the forwardlooking information used for overlay through statistical test and corroboration using publicly available
information and our understanding of the Group’s tuition fee receivable portfolios and industry practices,
including the impact of the coronavirus pandemic.
Further, we checked the data used in the ECL models, such as the historical aging analysis of defaults,
and recovery data, by reconciling data from source system reports to the database and from the database
to the loss allowance analysis/models and financial reporting systems. To the extent that the loss
allowance analysis is based on credit exposures that have been disaggregated into subsets with similar
risk characteristics, we traced or re-performed the disaggregation from source reports to the loss
allowance analysis.
We recalculated the impairment provisions. We checked the disclosures in the financial statements on the
allowance for ECL by tracing such disclosures to the ECL analysis prepared by management.
Impairment Testing of Property and Equipment Valued at Cost and Right-Of-Use Asset
The Group’s market capitalization is lower compared to its net book value. This is an impairment
indicator that requires an assessment of the recoverability of the Group’s non-financial assets, particularly
its property and equipment valued at cost and right-of-use asset. As at May 31, 2021, the carrying value
of the Group’s property and equipment valued at cost and right-of-use asset amounted to =
P1,596 million
representing 27% of the Group’s consolidated total assets. The assessment of the recoverable amount of
the property and equipment and right-of-use asset requires significant judgment and involves estimation
and assumptions about tuition fee rates, number of students and long-term growth rate, as well as discount
rates. In addition, because of the coronavirus pandemic, there is heightened level of uncertainty on the
future economic outlook and market forecast. Hence, such assessment is a key audit matter in our audit.
*SGVFS161303*
-3-
The disclosures on the property and equipment valued at cost and right-of-use asset are included in
Notes 2, 3, 9 and 19 to the consolidated financial statements.
Audit Response
We involved our internal specialist in evaluating the methodology and the assumptions used. These
assumptions include tuition fee rates, number of students, long-term growth rate and discount rates. We
compared the tuition fee rates and number of students against the historical performance of the
cash-generating unit and other relevant external data, taking into consideration the impact associated with
coronavirus pandemic. We tested the long-term growth rate and the parameters used in the determination
of the discount rates against market data and published market information. We also reviewed the
Group’s disclosures about those assumptions to which the outcome of the impairment test is most
sensitive; specifically those that have the most significant effect on the determination of the recoverable
amount of property and equipment.
Impairment Testing of Goodwill
Under the PFRSs, the Group is required to annually test the amount of goodwill for impairment. As of
May 31, 2021, the Group’s goodwill attributable to Centro Escolar Las Pinas, Inc. (CELPI) amounted to
=
P47.61 million which is considered significant to the consolidated financial statements. In addition,
management’s assessment process requires significant judgment and is based on assumptions which are
subject to a higher level of estimation uncertainty due to the current economic conditions which have
been impacted by the coronavirus pandemic, specifically tuition fee rates, number of students, discount
rates and long-term growth rate.
The Group’s disclosures about goodwill are included in Notes 2, 3 and 4 to the consolidated financial
statements.
Audit Response
We involved our internal specialist in evaluating the methodology and assumptions used. These
assumptions include tuition fee rates, number of students, discount rates and long-term growth rate. We
compared the tuition fee rates and number of students against the historical performance of the CGUs and
other relevant external data, taking into consideration the impact associated with coronavirus pandemic.
We tested the long-term growth rate and the parameters used in the determination of the discount rates
against market data and published market information. We also reviewed the Group’s disclosures about
those assumptions to which the outcome of the impairment test is most sensitive; specifically those that
have the most significant effect on the determination of the recoverable amount of goodwill.
Other Information
Management is responsible for the other information. The other information comprises the information
included in the SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report
for the two months ended May 31, 2021, but does not include the consolidated financial statements and
our auditor’s report thereon. The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A
and Annual Report for the two months ended May 31, 2021 are expected to be made available to us after
the date of this auditor’s report.
*SGVFS161303*
A member firm of Ernst & Young Global Limited
-4-
Our opinion on the consolidated financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audits of the consolidated financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the consolidated financial statements or our knowledge
obtained in the audits, or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with PFRSs, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
*SGVFS161303*
A member firm of Ernst & Young Global Limited
-5
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
*SGVFS161303*
A member firm of Ernst & Young Global Limited
-6-
The engagement partner on the audit resulting in this independent auditor’s report is Djole S. Garcia.
SYCIP GORRES VELAYO & CO.
Djole S. Garcia
Partner
CPA Certificate No. 0097907
SEC Accreditation No. 1768-A (Group A),
September 3, 2019, valid until September 2, 2022
Tax Identification No. 201-960-347
BIR Accreditation No. 08-001998-102-2018,
October 18, 2018, valid until October 17, 2021
PTR No. 8534301, January 4, 2021, Makati City
September 28, 2021
*SGVFS161303*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
May 31,
2021
March 31,
2021
ASSETS
Current Assets
Cash and cash equivalents (Note 5)
Tuition and other receivables (Note 6)
Inventories (Note 7)
Other current assets (Note 8)
Total Current Assets
P
=480,047,725
227,090,993
14,446,174
69,867,587
791,452,479
=
P510,858,969
344,984,005
14,510,927
60,598,777
930,952,678
Noncurrent Assets
Property and equipment (Note 9)
At revalued amount
At cost
Right-of-use asset (Note 19)
Goodwill (Note 4)
Other noncurrent assets (Note 11)
Total Noncurrent Assets
3,487,593,002
1,428,758,507
167,297,662
47,605,695
20,542,105
5,151,796,971
3,487,593,002
1,436,787,693
170,207,186
47,605,695
22,057,147
5,164,250,723
P
=5,943,249,450
=
P6,095,203,401
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and other current liabilities (Note 12)
Deferred revenue (Notes 14 and 15)
Dividends payable (Note 13)
Current portion of lease liability (Note 19)
Income tax payable
Total Current Liabilities
P
=439,335,804
–
108,618,157
14,276,673
–
562,230,634
=
P544,991,642
88,955,107
109,015,657
14,141,832
4,991
757,109,229
Noncurrent Liabilities
Deferred tax liabilities - net (Note 18)
Lease liability - net of current portion (Note 19)
Retirement liability (Note 17)
Other noncurrent liability (Note 12)
Total Noncurrent Liabilities
Total Liabilities
394,229,305
162,564,562
219,492,741
13,419,598
789,706,206
1,351,936,840
395,568,329
165,000,813
226,530,163
13,004,975
800,104,280
1,557,213,509
372,414,400
664,056
372,414,400
664,056
1,076,000,000
579,156,797
2,655,373,698
(99,780,240)
(317,179)
2,042,246
4,585,553,778
1,076,000,000
537,759,867
2,655,373,698
(111,566,649)
(323,947)
2,042,246
4,532,363,671
5,758,832
4,591,312,610
5,626,221
4,537,989,892
P
=5,943,249,450
=
P6,095,203,401
TOTAL ASSETS
Equity
Equity Attributable to Equity Holders of the University
Capital stock (Note 13)
Additional paid-in capital
Retained earnings (Note 13)
Appropriated
Unappropriated
Revaluation increment on land - net (Notes 9 and 25)
Remeasurement loss on retirement obligation (Note 17)
Revaluation reserve on financial assets at FVOCI (Note 11)
Effect of transactions with non-controlling interest (Note 13)
Equity Attributable to Non-controlling Interests in
Consolidated Subsidiaries
Total Equity
TOTAL LIABILITIES AND EQUITY
See accompanying Notes to Consolidated Financial Statements.
*SGVFS161303*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE TWO MONTHS ENDED MAY 31, 2021*
AND FOR THE YEARS ENDED MARCH 31, 2021 and 2020
May 31,
2021
(Two months)
REVENUES FROM CONTRACTS WITH CUSTOMERS
Tuition and other school fees (Note 14)
Miscellaneous fees (Notes 14 and 15)
OTHER REVENUES
Rental income (Notes 10, 19 and 22)
Donation income (Note 9)
March 31,
2021
(One year)
March 31,
2020
(One year)
P
=200,231,715 =
P1,129,208,087 =
P1,314,456,816
779,941
10,751,081
37,215,695
201,011,656 1,139,959,168 1,351,672,511
592,733
–
201,604,389
2,301,090
−
1,142,260,258
19,586,895
15,433,000
1,386,692,406
142,116,463
18,840,237
160,956,700
874,468,390
135,968,740
1,010,437,130
1,067,852,428
236,727,702
1,304,580,130
40,647,689
131,823,128
82,112,276
(1,698,590)
552,858
(144,358)
–
88,581
(1,201,509)
(11,881,653)
3,565,698
(456,023)
(2,856)
27,758,181
18,983,347
(11,453,819)
4,717,701
130,921
(417,723)
778,376
(6,244,544)
INCOME BEFORE INCOME TAX
39,446,180
150,806,475
75,867,732
PROVISION FOR (BENEFIT FROM) INCOME TAX
(Note 18)
(2,083,361)
COSTS AND EXPENSES (Note 16)
Costs of services
General and administrative expenses
INCOME BEFORE OTHER INCOME
(EXPENSES) AND INCOME TAX
OTHER INCOME (EXPENSES)
Interest expense (Notes 19 and 20)
Interest income (Note 5)
Foreign currency exchange gains (losses) - net
Loss on retirement/disposal of assets (Note 9)
Other income - net (Notes 5, 6 and 12)
NET INCOME
Attributable to:
Equity holders of the University
Non-controlling interests
Basic/Diluted Earnings Per Share (Note 24)
(4,449,752)
8,933,149
P
=41,529,541
=
P155,256,227
=
P66,934,583
P
=41,396,930
132,611
P
=41,529,541
=
P152,556,823
2,699,404
=
P155,256,227
=
P62,346,136
4,588,447
=
P66,934,583
P
=0.11
=
P0.41
=
P0.17
*The Group prepared the financial statement as of and for the two months ended May 31, 2021 in connection with the change of
the fiscal period end of the University from March 31, 2021 to May 31, 2021 (see Notes 1 and 2).
See accompanying Notes to Consolidated Financial Statements.
*SGVFS161303*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE TWO MONTHS ENDED MAY 31, 2021*
AND FOR THE YEARS ENDED MARCH 31, 2021 and 2020
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS)
Items not to be reclassified to profit or loss
Remeasurement gain (loss) on retirement obligation
(Note 17)
Income tax effect (Note 18)
Change in revaluation reserve on financial assets at
FVOCI (Note 11)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
TOTAL COMPREHENSIVE INCOME
Attributable to:
Equity holders of the University
Non-controlling interests
May 31,
2021
(Two months)
March 31,
2021
(One year)
March 31,
2020
(One year)
P
=41,529,541
=
P155,256,227
=
P66,934,583
13,096,010
(1,309,601)
11,786,409
(52,919,608)
5,291,961
(47,627,647)
(7,748,166)
774,817
(6,973,349)
6,768
11,793,177
7,992
(47,619,655)
(2,880)
(6,976,229)
P
=53,322,718
=
P107,636,572
=
P59,958,354
P
=53,190,107
132,611
P
=53,322,718
=
P104,937,168
2,699,404
=
P107,636,572
=
P55,369,907
4,588,447
=
P59,958,354
*The Group prepared the financial statement as of and for the two months ended May 31, 2021 in connection with the change of
the fiscal period end of the University from March 31, 2021 to May 31, 2021 (see Notes 1 and 2).
See accompanying Notes to Consolidated Financial Statements.
*SGVFS161303*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE TWO MONTHS ENDED MAY 31, 2021*
AND FOR THE YEARS ENDED MARCH 31, 2021 and 2020
Capital Stock
(Note 13)
Balances at
March 31, 2019
Net income
Other comprehensive loss
Cash dividends
Acquisition of
non-controlling interest
Expiration of appropriation
Appropriation for business
expansion
Balances at
March 31, 2020
Balances at
March 31, 2020
Net income
Other comprehensive loss
Cash dividends
Appropriation for business
expansion
Balances at
March 31, 2021
Balances at
March 31, 2021
Net income
Other comprehensive loss
Balances at
May 31, 2021
=
P372,414,400
−
−
−
Equity Attributable to Equity Holders of the University
Remeasurement
Effect of
Gain (Loss) on Revaluation Reserve on
Revaluation
Financial assets at transactions with
Retirement
Increment
Additional
Retained Earnings (Note 13)
FVOCI
non-controlling
Obligation
on Land - net
Paid-in
Capital Appropriated Unappropriated (Notes 9 and 18) (Notes 17 and 18)
(Note 11)
interest
=
P664,056 P
= 996,000,000
−
−
–
−
–
−
=
P477,339,788
62,346,136
−
(74,482,880)
P
= 2,655,373,698
−
−
−
(P
= 56,965,653)
−
(6,973,349)
−
(P
= 329,059)
−
(2,880)
−
Total
=
P− P
= 4,444,497,230
−
62,346,136
−
(6,976,229)
−
(74,482,880)
−
−
–
−
– (336,000,000)
−
336,000,000
−
−
−
−
−
−
2,042,246
−
2,042,246
−
−
–
(80,000,000)
−
−
−
−
−
80,000,000
Equity
Attributable to
Non-controlling
Interests in
Consolidated
Subsidiaries
Total Equity
=
P6,355,616 =
P4,450,852,846
4,588,447
66,934,583
−
(6,976,229)
(1,500,000)
(75,982,880)
(2,542,246)
−
(500,000)
−
−
−
=
P372,414,400
=
P664,056 P
= 740,000,000
=
P721,203,044
P
= 2,655,373,698
(P
= 63,939,002)
(P
= 331,939)
=
P2,042,246 =
P4,427,426,503
=
P6,901,817 =
P4,434,328,320
=
P372,414,400
−
−
−
=
P664,056 P
= 740,000,000
−
−
–
−
–
−
=
P721,203,044
152,556,823
−
–
P
= 2,655,373,698
−
−
−
(P
= 63,939,002)
−
(47,627,647)
−
(P
= 331,939)
−
7,992
−
=
P2,042,246 =
P4,427,426,503
−
152,556,823
−
(47,619,655)
−
–
=
P6,901,817 =
P4,434,328,320
2,699,404
155,256,227
−
(47,619,655)
(3,975,000)
(3,975,000)
(336,000,000)
−
−
–
336,000,000
−
−
−
−
−
−
=
P372,414,400
=
P664,056 =
P1,076,000,000
=
P537,759,867
P
= 2,655,373,698
(P
= 111,566,649)
(P
= 323,947)
=
P2,042,246 =
P4,532,363,671
=
P5,626,221 =
P4,537,989,892
=
P372,414,400
–
–
=
P664,056 =
P1,076,000,000
–
–
–
–
=
P537,759,867
41,396,930
–
P
= 2,655,373,698
–
–
(P
= 111,566,649)
–
11,786,409
(P
= 323,947)
–
6,768
=
P2,042,246 =
P4,532,363,671
–
41,396,930
–
11,793,177
=
P5,626,221 =
P4,537,989,892
132,611
41,529,541
–
11,793,177
=
P372,414,400
=
P664,056 =
P1,076,000,000
=
P579,156,797
P
= 2,655,373,698
(P
= 99,780,240)
(P
= 317,179)
=
P2,042,246 =
P4,585,553,778
=
P5,758,832 =
P4,591,312,610
*The Group prepared the financial statement as of and for the two months ended May 31, 2021 in connection with the change of the fiscal period end of the University from March 31, 2021 to
May 31, 2021 (see Notes 1 and 2).
See accompanying Notes to Consolidated Financial Statements.
*SGVFS161303*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWO MONTHS ENDED MAY 31, 2021*
AND FOR THE YEARS ENDED MARCH 31, 2021 and 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
Depreciation and amortization (Notes 9, 11, 16 and 19)
Movement in retirement liability (Note 17)
Interest expense (Notes 19 and 20)
Interest income (Note 5)
Unrealized foreign exchange losses (gains) - net
Loss on retirement/disposal of assets (Note 9)
Donation income (Note 9)
Operating income before changes in operating assets and
liabilities
Changes in operating assets and liabilities:
Decrease (increase) in:
Tuition and other receivables
Inventories
Other current assets
Increase (decrease) in:
Accounts payable and other current liabilities
Deferred revenue
Net cash generated (used in) from operations
Interest received
Income taxes paid
Interest paid
Net cash generated from (used in) operating activities
May 31,
2021
(Two months)
March 31,
2021
(One year)
March 31,
2020
(One year)
P
=39,446,180
=
P150,806,475
=
P75,867,732
19,052,662
6,058,588
1,698,590
(552,858)
144,358
–
–
108,836,616
(17,750,930)
11,881,653
(3,565,698)
456,023
2,856
–
115,951,592
24,001,785
11,453,819
(4,717,701)
(130,921)
417,723
(15,433,000)
65,847,520
250,666,995
207,411,029
117,886,259
64,753
(8,628,018)
(22,900,711)
(1,193,042)
(15,086,835)
(199,652,312)
495,978
(4,446,697)
(105,241,215)
(88,955,107)
(19,025,808)
559,611
(19,560)
–
(18,485,757)
(25,336,732)
26,483,472
212,633,147
3,677,991
(11,940,047)
(1,240,768)
203,130,323
178,896,844
62,471,635
245,176,477
4,961,403
(7,355,267)
(73,540)
242,709,073
CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisitions of:
Property and equipment (Note 9)
Software cost (Note 11)
Decrease (increase) in other noncurrent assets
Proceeds from sale of property and equipment (Note 9)
Net cash used in investing activities
(7,934,824)
–
151,195
–
(7,783,629)
(18,039,727)
(105,000)
1,454,685
–
(16,690,042)
(121,508,304)
(105,000)
14,094,885
76,655
(107,441,764)
CASH FLOWS USED IN FINANCING ACTIVITIES
Payments of leases (Notes 19 and 27)
Payments of cash dividends (Note 27)
Net cash used in financing activities
(4,000,000)
(397,500)
(4,397,500)
(24,000,000)
(715,217)
(24,715,217)
(24,000,000)
(74,803,640)
(98,803,640)
(144,358)
(456,023)
EFFECT OF FOREIGN CURRENCY RATE CHANGES ON
CASH AND CASH EQUIVALENTS
130,921
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
(30,811,244)
161,269,041
36,594,590
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
510,858,969
349,589,928
312,995,338
CASH AND CASH EQUIVALENTS
AT END OF YEAR (Note 5)
P
=480,047,725
=
P510,858,969
=
P349,589,928
*The Group prepared the financial statement as of and for the two months ended May 31, 2021 in connection with the change of
the fiscal period end of the University from March 31, 2021 to May 31, 2021 (see Notes 1 and 2).
See accompanying Notes to Consolidated Financial Statements.
*SGVFS161303*
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
The consolidated financial statements include the financial statements of Centro Escolar
University (the “University”) and the following subsidiaries (collectively referred to as the
“Group”):
Subsidiary
Centro Escolar University Hospital, Inc.
(the “Hospital”or CEUHI)
Centro Escolar Las Piñas, Inc. (CELPI)
(formerly Las Piñas College [LPC])
Centro Escolar Integrated School, Inc. (CE-IS)
Percentage of Ownership
2021
2020
2019
100.00%
100.00%
100.00%
99.90%
99.90%
99.90%
94.00%
94.00%
90.00%
The University, a publicly listed entity, was organized in the Philippines on June 3, 1907 to
establish, maintain and operate an educational institution or institutions for the instruction and
training of the youth in all branches of the arts and sciences, offering classes in tertiary level.
In accordance with the Commission on Higher Education (CHED) Memorandum Order No. 32,
the University’s Mendiola and Makati campuses were granted autonomous status to be in force
and in effect for five years from November 15, 2007 to November 14, 2012 per Resolution Nos.
087-2012 and 148-2012. Private Higher Education Institutions (HEIs) which were granted with
autonomous status in 2007 to 2009 and deregulated status in 2009 and 2010 shall retain their
respective status until December 31, 2015 by virtue of CHED Memorandum Order No. 21, series
of 2015. The CHED extended the autonomous status of these two campuses for two times until
May 31, 2021. The CHED further extended the autonomous status of these two campuses until
May 31, 2023 by virtue of CHED Memorandum Order No. 07 series of 2021 issued on
April 30, 2021.
The University’s Malolos campus was granted autonomous status for a period of five years
effective November 15, 2009 to November 14, 2014 per Resolution Nos. 087-2012 and 148-2012.
Such autonomous status was extended until December 31, 2015 by virtue of CHED Memorandum
Order No. 21, series of 2015. The CHED extended the autonomous status of the University’s
Malolos campus for two times until May 31, 2021. The autonomous status of the University’s
Malolos campus is also further extended until May 31, 2023 by virtue of CHED Memorandum
Order No. 07 series of 2021 issued on April 30, 2021.
Under this autonomous status, the University is free from monitoring and evaluation of activities
of the CHED and has the privilege to determine and prescribe curricular programs, among other
benefits, as listed in the memorandum order. The three general criteria used by the CHED for the
selection and identification of institutions which shall receive autonomous status are as follows:
a. Institutions established as centers of excellence or centers of development and/or with
Federation of Accrediting Agencies of the Philippines Level III Accredited programs;
b. With outstanding overall performance of graduates in the government licensure examinations;
and
c. With long tradition of integrity and untarnished reputation.
The registered principal office of the University is at 9 Mendiola Street, San Miguel, Manila.
*SGVFS161303*
-2-
The University incorporated the Hospital on June 10, 2008. The primary purpose of the Hospital
is to establish, maintain and operate a hospital, medical and clinical laboratories and such other
facilities that shall provide healthcare or any method of treatment for illnesses or abnormal
physical or mental health in accordance with advancements in modern medicine and to provide
education and training facilities in the furtherance of the health-related professions. The registered
principal office of the Hospital is at 103 Esteban corner Legaspi Streets, Legaspi Village, Makati
City. In January 2016, the Hospital entered into an agreement with Hemotek Renal Center
(Hemotek), a dialysis clinic, for the former to provide laboratory examinations to Hemotek
patients. As at May 31, 2021, the Hospital is operating nine Renal Centers, one of which is
operated by the Hospital starting the first quarter of the fiscal year 2020.
CE-IS was incorporated on July 24, 2013 and is a learning institution which offers pre-school,
primary and secondary education. The principal place of business of CE-IS is located at
Km 44 MacArthur Highway, Longos, Malolos City. On December 31, 2019, the University
purchased additional 2,000 shares of CE-IS increasing its ownership to 94%.
CELPI was incorporated on June 1, 1975 and is primarily engaged as an educational institution
offering a full range of programs from Kindergarten to Graduate school. The principal place of
business of CELPI is located at Dr. Faustino Uy Avenue, Pillar Village, Las Piñas City.
The consolidated financial statements were approved and authorized for issuance by the
University’s BOD on September 28, 2021.
Change in Academic Year and Fiscal Year
The University implemented a change in the academic year (i.e., from June ending March to
August ending May). This started in August 2019 and was reported under fiscal year ended
March 31, 2020. This change in the academic year had an effect on the net income reported for
fiscal year 2020 due to the non-inclusion of the April and May 2020 realized tuition and other
fees, as well as related expenses, which was reported in fiscal year ended March 31, 2021.
On June 28, 2019, the Board of Directors and Stockholders of the University approved to change
the fiscal year of the University from beginning April 1 and ending March 31 to beginning
June 1 to ending May 31. The University applied the change of the fiscal year with the Bureau of
Internal Revenue (BIR) on October 22, 2020. The University prepared financial statements as at
and for the two months ended May 31, 2021 to comply with the reportorial requirements of (1) the
BIR to file a separate return for the period between the close of the original accounting period and
the date designated as the close of the new accounting period and (2) the Securities and Exchange
Commission (SEC) to file the financial statements at the end of every fiscal year.
2. Summary of Significant Accounting and Financial Reporting Policies
Basis of Preparation
The consolidated financial statements have been prepared on a historical cost basis, except for
land classified under ‘Property and equipment’which is measured at revalued amount, and equity
investments classified as financial assets at fair value through other comprehensive income
(FVOCI) included under ‘Other noncurrent assets’.
The consolidated financial statements are presented in Philippine Peso (P
= or Peso), which is also
the Group’s functional currency. All values are rounded to the nearest Peso, unless otherwise
stated.
*SGVFS161303*
-3-
The consolidated statement of income, consolidated statements of comprehensive income,
consolidated statements of changes in equity and consolidated statements of cash flows as of and
for the two months ended May 31, 2021 were prepared due to the change of the fiscal year of the
University from fiscal year beginning April 1 and ending March 31 to fiscal year beginning
June 1 and ending May 31. As a result, the amounts presented in the consolidated statements of
income, consolidated statements of comprehensive income, consolidated statements of changes in
equity and consolidated statements of cash flows for the two months ended May 31, 2021 and for
the years ended March 31, 2021 and 2020 are not comparable.
Statement of Compliance
The consolidated financial statements have been prepared in compliance with Philippine Financial
Reporting Standards (PFRSs).
Presentation of Consolidated Financial Statements
The Group presents its assets and liabilities in the consolidated statement of financial position
based on current/noncurrent classification.
An asset is current when it is:
 Expected to be realized or intended to be sold or consumed in the normal operating cycle;
 Held primarily for trading;
 Expected to be realized within 12 months after the statement of financial position date; or
 Cash or cash equivalent, unless restricted from being exchanged or used to settle a liability for
at least 12 months after the statement of financial position date.
All other assets are classified as noncurrent.
A liability is current when:
 It is expected to be settled in the normal operating cycle;
 It is held primarily for trading;
 It is due to be settled within 12 months after the statement of financial position date; or
 There is no unconditional right to defer the settlement of the liability for at least 12 months
after the statement of financial position date.
All other liabilities are classified as noncurrent.
Deferred tax assets and liabilities are classified as noncurrent.
Basis of Consolidation
The consolidated financial statements comprise the financial statements of the University and its
subsidiaries. Control is achieved when the University is exposed, or has rights to variable returns
from its involvement with the investee and has the ability to affect those returns through its power
over the investee. Specifically, the University controls an investee if, and only if, the University
has:
 Power over the investee (that is, existing rights that give it the current ability to direct the
relevant activities of the investee);
 Exposure, or rights, to variable returns from its involvement with the investee; and
 The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this
presumption and when the University has less than a majority of the voting or similar rights of an
investee, the University considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
*SGVFS161303*
-4


The contractual arrangement with the other vote holders of the investee;
Rights arising from other contractual arrangements; and
The University’s voting rights and potential voting rights.
The University reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control. Consolidation of a
subsidiary begins when the University obtains control over the subsidiary and ceases when the
University loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated statement of
comprehensive income from the date the University gains control until the date the University
ceases to control the subsidiary.
When necessary, adjustments are made to the financial statements of subsidiaries to align their
accounting policies with the University’s accounting policies. All intra-group assets, liabilities,
equity, income, expenses and cash flows relating to transactions between entities in the Group are
eliminated in full on consolidation.
The financial statements of the subsidiaries were prepared for the same reporting years as the
Group which were presented as at and for the two months ended May 31, 2021 and for the fiscal
year ended March 31, 2021 and using consistent accounting principles and policies except for
CE-IS. CE-IS prepared its financial statements as at December 31, 2020 and 2019 in accordance
with PFRSs. For consolidation purposes, adjustments to the financial statements of CE-IS are
recorded to align with the reporting year of the University.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. In such circumstances, the carrying amount of the controlling and noncontrolling interests are adjusted by the Group to reflect the changes in its relative interests in the
subsidiary. Any difference between the amount by which the non-controlling interests are
adjusted and the fair value of the consideration paid or received is recognized directly in equity
and attributed to the owners of the University.
When a change in ownership interest in a subsidiary occurs, which results in loss of control over
the subsidiary, the University:
 Derecognizes the assets (including goodwill) and liabilities of the subsidiary;
 Derecognizes the carrying amount of any non-controlling interests;
 Derecognizes the cumulative translation differences recorded in equity;
 Derecognizes the other comprehensive income (OCI) and recycle the same to the profit or loss
to retained earnings;
 Recognizes the fair value of the consideration received;
 Recognizes the fair value of any investment retained; and
 Recognizes any surplus or deficit in the consolidated statement of income.
Non-controlling Interests
Non-controlling interests represent the portion of profit or loss and the net assets not held by the
University and are presented separately in the consolidated statement of income, consolidated
statement of comprehensive income and within equity in the consolidated statement of financial
position, separately from equity attributable to the equity holders of the University. Transactions
with non-controlling interest are accounted for using the equity concept method, whereby the
difference between the consideration and the book value of the share of the net assets acquired is
recognized as an equity transaction. Any losses applicable to the non-controlling interests are
allocated against the interests of the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
*SGVFS161303*
-5-
Changes in Accounting Policies and Disclosures
The accounting policies adopted are consistent with those of the previous financial year, except
that the Group has adopted the following new accounting pronouncements starting April 1, 2021.
Adoption of these pronouncements did not have any significant impact on the Group’s financial
position or performance.


Amendments to PFRS 9, PFRS 7, PFRS 4 and PFRS 16, Interest Rate Benchmark Reform
–Phase 2
Amendments to PFRS 16, COVID-19-related Rent Concessions
Foreign Currency Translation
Transactions denominated in foreign currencies are recorded in Peso based on the exchange rates
prevailing at the transaction dates. Foreign currency-denominated monetary assets and liabilities
are translated in Peso based on the Bankers’Association of the Philippines closing rate prevailing
at the reporting date in 2021 and 2020, respectively. Foreign exchange differences between rate at
transaction date and rate at settlement date or reporting date of foreign currency-denominated
monetary assets or liabilities are credited to or charged against profit or loss in the period in which
the rates changed. Non-monetary items that are measured at historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
 In the principal market for the asset or liability; or
 In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a nonfinancial asset takes into account a market participant’s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
 Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
 Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.
 Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
*SGVFS161303*
-6-
For assets and liabilities that are recognized in the consolidated financial statements on a recurring
basis, the Group determines whether transfers have occurred between Levels in the hierarchy by
reassessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of reporting date.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks and the level within the fair value hierarchy as
explained above (see Note 25).
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term deposits which are
highly liquid investments readily convertible to known amounts of cash with original maturities of
three months or less from dates of placements and are subject to insignificant risks of changes in
value. Cash and cash equivalents are carried at face value in the consolidated statement of
financial position.
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, and subsequently measured at amortized cost,
at FVOCI and at fair value through profit or loss (FVTPL).
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them. With
the exception of trade receivables that do not contain significant financing component or for which
the Group has applied the practical expedient, the Group initially measures a financial asset at fair
value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant financing component or which the Group has
applied the practical expedient are measured at transaction price determined under PFRS 15,
Revenue from Contracts with Customers.
In order for a financial asset to be classified and measured at amortized cost or FVOCI, it needs to
give rise to cash flows that are solely payments of principal and interest (SPPI) on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial
assets to generate cash flows. The business model determines whether cash flows will result from
collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognized on the trade
date, i.e., the date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
 Financial assets at amortized cost (debt instruments)
 Financial assets at FVOCI with recycling of cumulative gains and losses (debt instruments)
 Financial assets at FVOCI without recycling (equity instruments)
 Financial assets at FVTPL (debt and equity instruments)
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Financial assets at amortized cost (debt instruments)
This category is most relevant to the Group. The Group measures financial assets at amortized
cost if both of the following conditions are met:
 The financial asset is held within a business model with the objective to hold financial assets
in order to collect contractual cash flows; and
 The contractual terms of the financial asset give rise on specified dates to cash flows that are
closely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR)
method and are subject to impairment. Gains and losses are recognized in the parent company
statements of income when the asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost includes cash in banks and short-term deposits,
tuition fee and other receivables and refundable security deposits.
Financial assets at FVOCI (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as
equity investments designated at FVOCI when they meet the definition of equity under PAS 32,
Financial instruments: Presentation, and are not held for trading. The classification is determined
on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to consolidated statement of income.
Dividends are recognized as income in the consolidated statements of income when the right of
payment has been established, except when the Group benefits from such proceeds as a recovery
of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at FVOCI are not subject to impairment assessment.
The Group elected to classify irrevocably its investments in quoted equity instruments under this
category.
Derecognition
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when, and only when:
 the rights to receive cash flows from the asset expires;
 the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third party under a 'pass-through 'arrangement;
 the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the or
asset.
Modification of financial assets
The Group derecognizes a financial asset when the terms and conditions have been renegotiated to
the extent that, substantially, it becomes a new asset, with the difference between its carrying
amount and the fair value of the new asset recognized as a derecognition gain or loss in profit or
loss, to the extent that an impairment loss has not already been recorded.
The Group considers both qualitative and quantitative factors in assessing whether a modification
of financial asset is substantial or not. When assessing whether a modification is substantial, the
Group considers the following factors in the next page, among others:
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Change in currency
Introduction of an equity feature
Change in counterparty
If the modification results in the asset no longer considered “solely payment for principal and
interest”
The Group also performs a quantitative assessment similar to that being performed for
modification of financial liabilities. In performing the quantitative assessment, the Group
considers the new terms of a financial asset to be substantially different if the present value of the
cash flows under the new terms, including any fees paid net of any fees received and discounted
using the original effective interest rate, is at least 10% different from the present value of the
remaining cash flows of the original financial asset.
When the contractual cash flows of a financial asset are renegotiated or otherwise modified and
the renegotiation or modification does not result in the derecognition of that financial asset, the
Group recalculates the gross carrying amount of the financial asset as the present value of the
renegotiated or modified contractual cash flows discounted at the original EIR (or credit-adjusted
EIR for purchased or originated credit-impaired financial assets) and recognizes a modification
gain or loss in the statement of income.
When the modification of a financial asset results in the derecognition of the existing financial
asset and the subsequent recognition of a new financial asset, the modified asset is considered a
'new' financial asset. Accordingly, the date of the modification shall be treated as the date of initial
recognition of that financial asset when applying the impairment requirements to the modified
financial asset. The newly recognized financial asset is classified as Stage 1 for ECL measurement
purposes, unless the new financial asset is deemed to be originated as credit impaired (POCI).
Impairment of financial assets
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not
held at FVTPL. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted
at an approximation of the original effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the 12 months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a
loss allowance is required for credit losses expected over the remaining life of the exposure,
irrespective of timing of the default (a lifetime ECL).
The Group’s debt instruments at amortized cost comprise of cash and cash equivalents and
refundable security deposits that are considered to have low credit risk. Hence, it is the Group’s
policy to measure ECL on such instrument on a 12-month basis applying the low credit risk
simplification and based on the PD which is publicly available. However, when there has been a
significant increase in credit risk since origination, the allowance will be based on the lifetime
ECL. The Group uses external credit ratings both to determine whether the debt instrument has
significantly increased in credit risk and to estimate ECL.
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For tuition fee receivables, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance
based on lifetime ECLs at each reporting date. The Group has established a provision matrix that
is based on its historical credit loss experience, adjusted for forward-looking factors specific to
debtors and the economic environment.
Primary drivers like macroeconomic indicators of qualitative factors such as forward-looking data
on inflation rate, unemployment rate and consumer price index were added to the ECL calculation
to reach a forecast supported by both quantitative and qualitative data points.
The Group considers a financial asset in default when contractual payments are past due.
However, in certain cases, the Group may also consider a financial asset to be in default when
internal or external information indicates that the Group is unlikely to receive the outstanding
contractual cash flows in full before considering any credit enhancements held by the Group. A
financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and
borrowings, other financial liabilities carried at amortized cost, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.
The Group’s financial liabilities include accounts payable and other current liabilities (excluding
contract liabilities and statutory payables), dividends payable and lease liability.
Subsequent measurement
Other financial liabilities carried at amortized cost
These are issued financial instruments or their components, which are not designated as at FVTPL
and where the substance of the contractual arrangement results in the Group having an obligation
either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than
by the exchange of a fixed amount of cash or another financial asset for a fixed number of its own
equity shares. The components of issued financial instruments that contain both liability and
equity elements are accounted for separately, with the equity component being assigned the
residual amount after deducting from the instrument as a whole the amount separately determined
as the fair value of the liability component on the date of issue.
After initial measurement, financial liabilities not qualified and not designated as at FVTPL are
subsequently measured at amortized cost using the effective interest method. Amortized cost is
calculated by taking into account any discount or premium on the issuance and fees that are an
integral part of the effective interest rate.
This accounting policy applies primarily to the Group’s accounts payable and other current
liabilities (excluding contract liabilities and statutory payables), dividends payable and lease
liability.
Derecognition
A financial liability (or a part of a financial liability) is derecognized when the obligation under
the liability is discharged, cancelled or has expired. Where an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an
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existing liability or a part of it are substantially modified, such an exchange or modification is
treated as a derecognition of the original financial liability and the recognition of a new financial
liability, and the difference in the respective carrying amounts is recognized in the statement of
income.
Exchange or modification of financial liabilities
The Group considers both qualitative and quantitative factors in assessing whether a modification
of financial liabilities is substantial or not. The terms are considered substantially different if the
present value of the cash flows under the new terms, including any fees paid net of any fees
received and discounted using the original effective interest rate, is at least 10% different from the
present value of the remaining cash flows of the original financial liability. However, under
certain circumstances, modification or exchange of a financial liability may still be considered
substantial, even where the present value of the cash flows under the new terms is less than 10%
different from the present value of the remaining cash flows of the original financial liability.
There may be situations where the modification of the financial liability is so fundamental that
immediate derecognition of the original financial liability is appropriate (e.g., restructuring a
financial liability to include an embedded equity component).
When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new
liability. The difference between the carrying value of the original financial liability and the fair
value of the new liability is recognized in profit or loss.
When the exchange or modification of the existing financial liability is not considered as
substantial, the Group recalculates the gross carrying amount of the financial liability as the
present value of the renegotiated or modified contractual cash flows discounted at the original EIR
and recognizes a modification gain or loss in profit or loss.
If modification of terms is accounted for as an extinguishment, any costs or fees incurred are
recognized as part of the gain or loss on the extinguishment. If the modification is not accounted
for as an extinguishment, any costs or fees incurred adjust the carrying amount of the financial
instrument and are amortized over the remaining term of the modified financial instrument.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the
consolidated statement of financial position if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, to realize the assets and
settle the liabilities simultaneously.
Inventories
Inventories are valued at the lower of cost and net realizable value (NRV). NRV is the estimated
selling price in the ordinary course of business, less marketing and distribution costs. The cost
includes the invoice amount, freight in and other incidental costs and is determined using the firstin, first-out method.
Property and Equipment
Property and equipment, except for land, is carried at cost, less accumulated depreciation and
amortization and accumulated allowance for impairment losses. The initial cost of property and
equipment comprises its purchase price, including import duties, taxes and any directly
attributable costs of bringing the assets to their working condition and location for their intended
use.
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Land is carried at revalued amount. Valuations are performed with sufficient regularity to ensure
that the fair value of a revalued asset does not differ materially from its carrying amount.
Any revaluation surplus, net of tax effect, is presented in OCI, except to the extent that it reverses
a revaluation decrease of the same asset previously recognized in the consolidated statement of
income, in which case, the increase is recognized in the consolidated statement of income. A
revaluation decrease is recognized in the consolidated statement of income, except to the extent
that it offsets an existing surplus on the same asset presented in OCI. Upon disposal, any
revaluation surplus, net of tax effect, relating to the land being sold is transferred to retained
earnings.
Construction in progress, included in property and equipment, is stated at cost.
Expenditures incurred after the property and equipment have been put into operations, such as
repairs and maintenance and overhaul costs, are normally charged against the consolidated
statement of income in the period in which the costs are incurred. In situations where it can be
clearly demonstrated that the expenditures have resulted in an increase in the future economic
benefits expected to be obtained from the use of an item of property and equipment beyond its
originally assessed standard of performance, the expenditures are capitalized as an additional cost
of property and equipment.
The useful life and depreciation and amortization method are reviewed at least every reporting
date and adjusted prospectively, if appropriate.
Depreciation of property and equipment is computed on a straight-line basis over the following
estimated useful lives of the assets:
Land improvements
Building
Furniture, transportation, auxiliary
and library equipment
Library books
Leasehold improvements
Number of Years
10
50
5
10
10 or lease term
whichever is shorter
Construction in progress is not depreciated until such time that the relevant assets are completed
and become available for intended use.
Fully depreciated property and equipment are retained in the accounts until these are no longer
used and no further depreciation and amortization is charged to the consolidated statement of
income.
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising from the derecognition of
the asset by sale (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) and by write off, is recognized under “Miscellaneous fees”and “Loss on
retirement/disposal of assets,”respectively, in the consolidated statement of income in the year the
asset is derecognized.
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Investment Property
Investment property is measured initially at cost, including transaction costs. An investment
property acquired through an exchange transaction is measured at fair value of the asset acquired,
unless the fair value of such an asset cannot be measured, in which case, the investment properties
acquired are measured at the carrying amount of the asset given up. Expenditures incurred after
the investment properties have been put into operations, such as repairs and maintenance costs, are
normally charged to the consolidated statement of income in the year in which the costs are
incurred.
The investment property of the Group comprises of land being leased to a third party.
Subsequent to initial recognition, land is stated at fair value, which reflects the prevailing market
conditions at the end of reporting period. Gains and losses from changes in the fair value of the
land are recognized in the consolidated statement of income under “Fair value changes in
investment property.”
Transfers are made to or from investment property only when there is a change in use. For a
transfer from investment property to owner-occupied property, the cost and the carrying amount of
the property transferred do not change. If an owner-occupied property becomes an investment
property, the Group accounts for such property in accordance with the accounting policy on
property and equipment up to the date of change in use.
Investment property is derecognized when it has either been disposed of or when the investment
property is permanently withdrawn from use and no future benefit is expected from its disposal.
Business Combinations and Goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date fair
value and the amount of any non-controlling interest in the acquiree. For each business
combination, the acquirer elects whether to measure the non-controlling interest in the acquiree at
fair value or at the proportionate share in the recognized amounts of the acquiree’s identifiable net
assets. Acquisition-related costs incurred are expensed as incurred.
When the Group acquires a business, it assesses the financial assets and financial liabilities
assumed for appropriate classification and designation in accordance with the contractual terms,
economic circumstances and pertinent conditions as at the acquisition date. This includes the
separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, any previously held equity interest is remeasured
at its acquisition date fair value and any resulting gain or loss is recognized in the consolidated
statement of income.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at
the acquisition date. Subsequent changes to the fair value of the contingent consideration which is
deemed to be an asset or liability will be recognized in accordance with PAS 39 in the
consolidated statement of income. If the contingent consideration is classified as equity, it should
not be remeasured until it is finally settled within equity.
When the seller agrees to contractually indemnify the acquirer for the outcome of a contingency or
uncertainty related to a specific asset or liability, the acquirer recognizes an indemnification asset
with an equivalent amount deducted from the consideration transferred for the business
combination. Indemnification asset recognized at the acquisition date continues to be measured
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on the same basis as the related indemnified item subject to collectability and contractual terms
until the asset is collected, sold, cancelled or expire in the post-combination period. The Group
measures the indemnification asset on the same basis as the related item, subject to any restrictions
in the contractual terms.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognized for non-controlling interests, and any previous interest
held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net
assets acquired is in excess of the aggregate consideration transferred, the Group reassesses
whether it has correctly identified all of the assets acquired and all of the liabilities assumed and
reviews the procedures used to measure the amounts to be recognized at the acquisition date. If
the reassessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in the consolidated statement of income.
After initial recognition, goodwill is measured at cost, less any accumulated impairment losses.
For purposes of impairment testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group’s cash-generating unit (CGU), or group of CGU’s,
that are expected to benefit from the synergies of the combination, irrespective of whether other
assets or liabilities of the Group are assigned to those units or groups of units.
Each unit or group of units to which the goodwill is allocated should:
 Represent the lowest level within the Group at which the goodwill is monitored for internal
management purposes; and
 Not be larger than an operating segment determined in accordance with PFRS 8.
When goodwill has been allocated to a CGU and part of the operation within that unit is disposed
of, the goodwill allocated with disposed operation is included in the carrying amount of the
operation when determining the gain or loss on disposal. Goodwill disposed in these
circumstances is measured based on the relative values of the disposed operation.
Impairment of Nonfinancial Assets
An assessment is made at each reporting date whether there is any indication of impairment of
nonfinancial assets, or whether there is any indication that an impairment loss previously
recognized for an asset in prior years may no longer exists or may have decreased. If any such
indication exists, the asset’s recoverable amount is estimated. An asset’s recoverable amount is
calculated at the higher of the asset’s or CGU’s value-in-use or its fair value less cost to sell. The
recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets, in which case,
the recoverable amount is assessed as part of the CGU to which it belongs.
In assessing value-in-use, the estimated future cash flows are discounted to their present value
using pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset (or CGU). In determining fair value less cost to sell, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used.
An impairment loss is recognized only if the carrying amount of an asset (or CGU) exceeds its
recoverable amount. An impairment loss is charged against the consolidated statement of income
in the period in which it arises, unless the asset (or CGU) is carried at a revalued amount, in which
case, the impairment loss is charged against the revaluation increment of the said asset (or CGU).
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A previously recognized impairment loss is reversed only if there has been a change in the
estimates used to determine the recoverable amount of an asset (or CGU), but not to an amount
higher than the carrying amount that would have been determined (net of any depreciation and
amortization) had no impairment loss been recognized for the asset (or CGU) in prior years. A
reversal of an impairment loss is credited to current consolidated statement of income, unless the
asset (or CGU) is carried at revalued amount, in which case, the reversal of the impairment loss is
credited to the revaluation increment of the said asset (or CGU).
The following criteria are also applied in assessing impairment of specific assets:
Property and equipment and right-of-use asset
The carrying values of property and equipment and right-of-use asset are reviewed for impairment
when events or changes in circumstances indicate that the carrying values may not be recoverable.
If any such indication exists and when the carrying values exceed the estimated recoverable
amounts, the assets or CGUs are written down to their recoverable amounts.
Goodwill
Goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the CGU (or group
of CGUs) to which the goodwill relates. When the recoverable amount of the CGU (or group of
CGUs) is less than the carrying amount of the CGU (or group of CGUs) to which goodwill has
been allocated, an impairment loss is recognized immediately in the consolidated statement of
income. Impairment losses relating to goodwill cannot be reversed for subsequent increases in its
recoverable amount in future periods.
Other Assets
Advances to suppliers
Advances to suppliers, included under “Other current assets”, represent amounts paid to suppliers
for purchases not yet received as at the reporting date. This is subsequently reversed to an
expense account when the goods or services are received.
Prepayments
Prepayments, included under “Other current assets”, are initially measured at the amounts paid
and subsequently recognized as expense over the period in which the prepayments apply.
Creditable withholding tax (CWT) and prepaid taxes
CWT and prepaid taxes, included under “Other current assets”, pertains to the tax withheld at
source by the Group’s lessees and excess quarterly income tax payments. These are creditable
against its income tax liability.
Advances to contractors
Advances to contractors, included under “Other noncurrent assets”, represent amounts paid to
contractors for purchases not yet received as at the reporting date. This is subsequently reversed
to an asset account when the goods or services are received.
Software cost
Software cost acquired separately is measured on initial recognition at cost. Following initial
recognition, software cost is carried at cost less any accumulated amortization and any
accumulated impairment loss. The estimated useful life of software cost is assessed at the
individual asset level. Software cost is amortized over its estimated useful life of three years.
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Periods and method of amortization for software cost are reviewed annually or earlier when an
indicator of impairment exists.
Gain or loss arising from derecognition of software cost is measured as the difference between the
net disposal proceeds and the carrying amount of the asset and is recognized in profit or loss when
the asset is derecognized.
Cost to fulfill the contract
Cost to fulfill the contract, included under “Other current assets”, are initially measured at
amounts paid and subsequently recognized as expense upon performance of the related services to
the students. The Group amortizes capitalized cost to fulfill a contract to “Expenses for
co-curricular activities”under “Cost of services”.
Equity
Capital stock is measured at par value for all shares issued. When the University issues more than
one class of stock, a separate account is maintained for each class of stock and the number of
shares issued.
When the shares are sold at a premium, the difference between the proceeds and the par value is
credited to “Additional paid-in capital.” When shares are issued for a consideration other than
cash, the proceeds are measured by the fair value of the consideration received.
Retained earnings represent accumulated earnings of the Group less dividends declared.
Revenue from Contracts with Customers
Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group expects
to be entitled in exchange for those goods, excluding the related taxes. The Group assesses its
revenue arrangement against specific criteria in order to determine if it is acting as principal or agent.
The Group has concluded that it is acting as principal in its all of its revenue arrangements.
Tuition and other school fees, including income from other school services
Tuition and other school fees, including income from other school services except for the sale of
books and uniforms, are recognized over time as revenue over the corresponding school term
using output method (i.e., time lapsed over the service period such as semester or school year,
depending on the curriculum registered). Upon enrollment, students have the option to pay the
tuition and other school fees in full or in installment. Tuition and other fees, including income
from other school services except for the sale of books and uniforms, to be recognized in the
remaining months after statement of financial position date or next school term which are not yet
due for collection are deferred and is shown under “Deferred revenue”account in the statement of
financial position.
Contract Balances
Receivables
A receivable represents the Group’s right to an amount of consideration that is unconditional
(i.e., only the passage of time is required before payment of the consideration is due).
Contract liability
A contract liability is the obligation to transfer goods to a customer for which the Group has
received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Group transfers goods or services to the customer, a contract
liability is recognized when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognized as revenue when the Group performs the obligations under the
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contract. The Group’s contract liabilities represent advance collections for culminating and
yearbook fees and for revenues expected to be earned until end of the academic year presented
under “Accounts payable and other current liabilities”and will be recognized as revenue when the
related services are rendered.
Other Revenues
Interest income
Interest income is recognized as the interest accrues taking into account the effective yield on the
asset.
Rental income
Rental income arising from leased properties is accounted for on a straight-line basis over the
lease terms.
Donation income
Donation income is recognized as revenue when the right to receive, whether in money or in kind,
is established.
Dividend income
Dividend income is recognized when the right to receive the payment is established.
Expense Recognition
Expenses are recognized in the consolidated statement of income when a decrease in future
economic benefits related to a decrease in an asset or an increase in a liability has arisen that can
be measured reliably.
Expenses are recognized in the consolidated statement of income:
 On the basis of systematic and rational allocation procedures when economic benefits are
expected to arise over several accounting periods and the association can only be broadly or
indirectly determined; or
 Immediately when an expenditure produces no future economic benefits or when, and to the
extent that, future economic benefits do not qualify or cease to qualify, for recognition in the
consolidated statement of financial position as an asset.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in
the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in
connection with the borrowing of funds.
Retirement Benefits
The Group operates a defined benefit retirement plan which requires contribution to be made to a
separately administered fund.
The cost of providing benefits under the defined benefit retirement plan is actuarially determined
using the projected unit credit method.
Retirement expense comprises the following:
 Service cost; and
 Net interest on the retirement liability.
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Service costs which include current service costs, past service costs and gains or losses on
non-routine settlements are recognized as expense in the consolidated statement of income. Past
service costs are recognized when plan amendment or curtailment occurs. These amounts are
calculated periodically by the independent qualified actuary.
Net interest on the retirement liability is the change during the period in the retirement liability
that arises from the passage of time which is determined by applying the discount rate based on
government bonds to the retirement liability. Net interest on the retirement liability is recognized
as an expense or income in the consolidated statement of income.
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in
the effect of the asset ceiling (excluding net interest on the retirement liability) are recognized
immediately in OCI in the period in which they arise. Remeasurements are not reclassified to the
consolidated statement of income in subsequent periods.
The retirement liability is the aggregate of the present value of defined benefit obligation at the
reporting date reduced by the fair value of plan assets, adjusted for any effect of limiting a net
retirement asset to the asset ceiling. The asset ceiling is the present value of any economic
benefits available in the form of refunds from the plan or reductions in future contributions to the
plan.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly
to the Group. The fair value of plan assets is based on market price information. When no market
price is available, the fair value of plan assets is estimated by discounting expected future cash
flows using a discount rate that reflects both the risk associated with the plan assets and the
maturity or expected disposal date of those assets (or, if they have no maturity, the expected
period until the settlement of the related obligations).
Income Taxes
Income tax on income or loss for the year comprises current and deferred tax. Income tax is
determined in accordance with Philippine tax laws. Income tax is recognized in the consolidated
statement of income, except to the extent that it relates to items recognized directly in equity, in
which case, the tax effect is recognized in the consolidated statement of comprehensive income.
Current tax
Current tax assets and current tax liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the tax authority. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted as at the statement of
financial position date.
Deferred tax
Deferred tax is provided or recognized, using the liability method, for all temporary differences
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the statement of financial position date.
Deferred tax assets are recognized for all deductible temporary differences and unused net
operating loss carryover (NOLCO). Deferred tax assets are recognized to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences
and NOLCO can be utilized, except:
a. When the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination
*SGVFS161303*
- 18 -
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss; or
b. In respect of deductible temporary differences associated with investments in subsidiaries,
deferred tax assets are recognized only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilized.
The carrying amount of deferred tax provided is based on the expected manner of realization or
settlement of the carrying amount of the assets and liabilities, using tax rates enacted or
substantively enacted at the reporting date.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient future taxable profits will be available to allow
all or part of the deferred tax assets to be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
a. When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
b. In respect of taxable temporary differences associated with investments in subsidiaries, when
the timing of the reversal of the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
offset current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same tax authority.
Deferred income tax assets and liabilities are offset if a legally enforceable right to offset current
income tax against current income tax liabilities and the deferred income tax assets and liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities which intend to either settle current income tax liabilities and assets on a
net basis or to realize the assets and settle the liabilities simultaneously, on each future period in
which significant amounts of deferred income tax assets and liabilities are expected to be settled or
recovered. Subsidiaries operating in the Philippines file income tax returns on an individual basis.
Thus, the deferred tax assets and deferred tax liabilities are offset on a per entity basis.
Leases
Group as lessor
Leases where the Group does not transfer all the risks and benefits of ownership of the assets are
classified as operating leases. Initial direct costs incurred in negotiating operating leases are added
to the carrying amount of the leased asset and are recognized over the lease term on the same basis
as the rental income. Operating lease payments are recognized in the consolidated statement of
income. Any rental payments are accounted for on a straight-line basis over the lease term. Rental
income in May 31, 2021 and March 31, 2021 and 2020 is presented as a separate line item in the
consolidated statement of income. Contingent rentals are recognized as revenue in the period in
which they are earned.
Group as a lessee
The Group assesses at contract inception whether a contract is, or contains, a lease (i.e., if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration).
*SGVFS161303*
- 19 -
The Group applies a single recognition and measurement approach for all leases, except for its
leases of low-value asset and short-term leases. The Group recognizes lease liability to make lease
payments and right-of-use asset representing the right to use the underlying asset.
Right-of-use asset
The Group recognizes right-of-use asset at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use asset is measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liability. The
cost of right-of-use asset includes the amount of lease liability recognized, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives
received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognized right-of-use asset is depreciated on a straight-line basis over the
shorter of its estimated useful life and the lease term.
Right-of-use asset is subject to impairment. Refer to the accounting policies in section Impairment
of Nonfinancial Assets.
Lease liability
At the commencement date of the lease, the Group recognizes lease liability measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease incentives receivable, variable
lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Group and payments of penalties for terminating the
lease, if the lease term reflects the Group exercising the option to terminate.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate
at the lease commencement date if the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liability is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease
liability is remeasured if there is a modification, a change in the lease term, a change in the insubstance fixed lease payments or a change in the assessment to purchase the underlying asset.
Leases for low value assets and short-term leases
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain
a purchase option). It also applies the lease of low-value assets recognition exemption to leases that
are considered to be low value. Lease payments on short-term leases and leases of low-value assets
are recognized as expense on a straight-line basis over the lease term.
Payments for leases for low value assets and short-term leases and are recognized as “Rental”under
“Cost of services”.
Segment Reporting
The Group’s operating businesses are organized and managed separately according to the
geographic locations, designated as the Group’s campuses, with each segment representing a
strategic business unit that offers varying courses depending on demands of the market. Financial
information on business segments is presented in Note 21.
Basic and Diluted Earnings Per Share (EPS)
Basic EPS amounts are calculated by dividing net income by the weighted average number of
ordinary shares outstanding during the year.
*SGVFS161303*
- 20 -
Diluted EPS is calculated by dividing net income attributable to common shareholders by the
weighted average number of common shares outstanding during the year adjusted for the effects
of any dilutive potential common shares.
Provisions
A provision is recognized only when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and, a reliable estimate can be made of the amount of the
obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability.
Contingencies
Contingent assets are not recognized in the consolidated financial statements but are disclosed in
the notes to consolidated financial statements when an inflow of economic benefits is probable.
Contingent liabilities are not recognized in the consolidated financial statements but these are
disclosed in the notes to consolidated financial statements unless the possibility of an outflow of
resources embodying economic benefits is remote.
Events after Report Date
Post year-end events up to the date of approval of the BOD of the consolidated financial
statements that provide additional information about the Group’s position reporting date (adjusting
events) are reflected in the consolidated financial statements, if any. Post year-end events that are
not adjusting events are disclosed in the notes to consolidated financial statements when material
3. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the consolidated financial statements in compliance with PFRSs requires
management to make judgments and estimates that affect the amounts reported in the consolidated
financial statements and accompanying notes. Future events may occur which can cause the
assumptions used in arriving at those estimates to change. The effects of any changes in estimates
will be reflected in the consolidated financial statements as they become reasonably determinable.
Judgments and estimates are continuously evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
In the process of applying the Group’s accounting policies, management has made the judgments
below apart from those involving estimations, which have the most significant effect on the
amounts recognized in the consolidated financial statements:
Recognition of tuition and other fees over time
The Group determined that tuition and other fees, the major source of revenue of the Group, are to
be recognized over time using the output method on the basis of time lapsed over the service
period since it provides a faithful depiction of the Group’s performance in transferring control of
the services to the students. The fact that another entity would not need to re-perform the service
that the Group has provided to date demonstrates that the customer or the student simultaneously
receives and consumes the benefits of the Groups’performance as it is performed.
*SGVFS161303*
- 21 -
Operating leases
 Group as lessor
The Group has entered into commercial property leases on its Mendiola, Malolos, Makati and
Las Piñas campuses. The Group has determined, based on an evaluation of the terms and
conditions of the arrangements (that is, the lease does not transfer ownership of the asset to the
lessee by the end of the lease term, the lessee has no option to purchase the asset at a price that
is expected to be sufficiently lower than the fair value at the date the option is exercisable, and
the lease term is not for the major part of the asset’s economic life), that it retains all the
significant risks and rewards of ownership of these properties. Thus, the leases are classified
as operating leases.

University as lessee
The Group has entered into a lease on premises it uses for its Makati-Buendia campus. The
Group has determined, based on an evaluation of the terms and conditions of the arrangement
(that is, the lease does not transfer ownership of the asset to the lessee by the end of the lease
term, the lessee has no option to purchase the asset at a price that is expected to be sufficiently
lower than the fair value at the date the option is exercisable, and the lease term is not for the
major part of the asset’s economic life), that not all significant risks and rewards of ownership
of the properties have been transferred to the Group. Thus, the lease is classified as operating
lease (see Note 19).
Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed below.
Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liability. The IBR is the rate of interest that the
Group would have to pay to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires
estimation when no observable rates are available or when they need to be adjusted to reflect the
terms and conditions of the lease. The Group estimates the IBR using observable inputs (such as
market interest rates) when available and is required to make certain entity-specific estimates
(such as the Group’s stand-alone credit rating).
The carrying value of the Group’s lease liability as at May 31, 2021 and March 31, 2021 is disclosed
in Note 19.
Estimation of allowance for expected credit losses
The Group uses the simplified approach in calculating ECLs for receivables. The provision rates
are based on days past due for groupings of various customer segments that have similar loss
patterns (i.e., by customer type).
The provision matrix is initially based on the Group’s historical observed default rates. The
Group calibrates the matrix to adjust the historical credit loss experience with forward-looking
information. For instance, if forecasted economic conditions are expected to deteriorate over the
next year which can lead to an increased number of defaults, the historical default rates are
adjusted. At every reporting date, the historical observed default rates are updated and changes in
forward-looking estimates are analyzed.
*SGVFS161303*
- 22 -
The segmentation of the Group’s receivable, identification and definition of default and the
assessment of the correlation between historically observed default rates, forecast economic
conditions and ECLs are significant estimates. The Group also applied weights to various
scenarios in the computation of the allowance for ECL as of May 31, 2021 and March 31, 2021 to
include the impact of coronavirus pandemic. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions. The Group’s historical credit loss experience
and forecast of economic conditions may also not be representative of the customer’s actual
default in the future.
The carrying values of tuition and other receivables and allowance for ECL as at May 31, 2021
and March 31, 2021 are disclosed in Note 6.
Determination of NRV of inventories
The Group’s estimates of the NRV of inventories are based on the most reliable evidence available
at the time the estimates are made and the amount at which the inventories are expected to be
realized. These estimates consider the fluctuations of price or cost directly relating to events
occurring after the end of the period to the extent that such events confirm conditions existing at
the reporting date. A new assessment is made of NRV in each subsequent period. When the
circumstances that previously caused inventories to be written down below cost no longer exist or
when there is a clear evidence of an increase in NRV because of changes in economic
circumstances, the amount of the write-down is reversed so that the new carrying amount is the
lower of the cost and the revised NRV.
No write-down of inventories was recognized for the two months ended May 31, 2021 and for the
year ended March 31, 2021. The carrying value of inventories of the Group is disclosed in Note 7.
Estimation of useful lives of property and equipment
The useful lives of property and equipment are estimated based on the period over which these
assets are expected to be available for use. The estimated useful lives of property and equipment
are reviewed periodically and are updated if expectations differ from previous estimates due to
asset utilization, internal technical evaluation, technological and environmental changes and
anticipated use of the assets tempered by related industry benchmark information. It is possible
that future financial performance could be materially affected by changes in these estimates
brought about by changes in factors mentioned. Any reduction in the estimated useful lives of the
property and equipment would increase depreciation and amortization expense.
The estimated useful lives of property and equipment is discussed in Note 2 to the consolidated
financial statements. There is no change in the estimated useful lives of property and equipment as
of May 31, 2021 and March 31, 2021.
The carrying values of depreciable property and equipment (i.e., excluding land and construction
in progress) are disclosed in Note 9.
Impairment of property and equipment and right-of-use asset
The Group assesses at each reporting date whether there is any indication that its property and
equipment and right-of-use asset are impaired. Determining the fair value of these noncurrent
non-financial assets, which requires the determination of future cash flows expected to be
generated from the continued use and ultimate disposition of such assets, requires the Group to
make estimates and assumptions that can materially affect the consolidated financial statements.
Future events could cause management to conclude that these assets are impaired. Any resulting
impairment loss could have a material adverse impact on the Group’s financial position and
*SGVFS161303*
- 23 -
financial performance. The preparation of the estimated future cash flows involves significant
judgment and estimations. While management believes that the assumptions made are appropriate
and reasonable, significant changes in management assumptions may materially affect the
assessment of recoverable values and may lead to future additional impairment charges under
PFRS.
The Group’s market capitalization is lower as compared to its net book value is an impairment
indicator on the Group’s property and equipment as of May 31, 2021 and March 31, 2021. Hence,
the Group performed impairment analysis as of May 31, 2021 and March 31, 2021. The Group’s
value-in-use calculation involves significant management judgment in the use of assumptions,
particularly tuition fee rates, number of students, long-term growth rate and discount rate. The
carrying values of property and equipment are disclosed in Note 9. There are no impairment
indicators on the Group’s right-of-use asset as of May 31, 2021 and March 31, 2021. The carrying
value of right-of-use asset as of May 31, 2021 and March 31, 2021 is disclosed in Note 19.
As at May 31, 2021 and March 31, 2021, the recoverable amount of the CGU has been determined
based on the value-in-use calculation using cash flow projections from the five-year strategic plan
for the University. Tuition fee rates and number of students assumed to project revenues were
based on approved tuition fee increase and the University’s historical data and performance. The
impact of the coronavirus pandemic was also considered in the assessment made by incorporating
it to the cash flow projections based on the expected results of operations for FY 2021-2022.
The discount rate used for the computation of the net present value is the cost of the equity and
was determined by reference to comparable entities. For the two months ended May 31, 2021, the
pre-tax discount rates applied to cash flow projections is 10.22% and 10.43%. For the year ended
March 31, 2021, the pre-tax discount rate applied to cash flow projections is 10.58%. The longterm growth rate for both period to project cash flows beyond the five-year period is nil.
Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. The Group’s
value-in-use calculation involves significant management judgment in the use of assumptions,
particularly the tuition fee rates (and the impact of coronavirus pandemic), number of students
(and the impact of coronavirus pandemic), long-term growth rate and the discount rate.
The carrying value of goodwill of the Group is disclosed in Note 4.
Revaluation of land
The fair value of the Group’s land at revalued amount was based on a third party appraisal with
effective date of valuation of March 31, 2019, using sales comparison approach. Based on
comparison of recent sale transactions or offerings of similar properties done by the Group as at
May 31, 2021, management assessed that there were no significant movements in the fair value of
the land from date of last valuation until May 31, 2021. Key assumptions used by the independent
appraiser are disclosed in Note 25.
The revalued amount of land included under “Property and equipment”in the consolidated
statement of financial position is disclosed in Notes 9.
Retirement liability
The cost of the defined benefit retirement plan and the present value of defined benefit obligation
are determined using an actuarial valuation. The actuarial valuation involves making assumptions
about employee turnover rates, discount rates, prospective salary increases and mortality rate.
Due to the complexity of the actuarial valuation, the underlying assumptions and long-term nature
*SGVFS161303*
- 24 -
of this plan, such estimates are subject to significant uncertainty. All significant assumptions are
reviewed at each reporting date.
The assumed discount rates were determined using the market yields on Philippine government
bonds with terms consistent with the expected employee benefit payout as at the reporting date.
Future salary increases are assumed for all future years within the duration of the plan and take
into account the inflation, seniority, promotion, merit, productivity and other market factors.
Employee turnover rates are based on the probability of voluntary separation of service from the
University prior to their retirement date. Mortality rate are based on the probability of being
deceased prior to retirement.
The present value of defined benefit obligation and details about the significant assumptions used
are disclosed in Note 17.
Recognition of deferred income taxes
Deferred tax assets are recognized for all deductible temporary differences and unused NOLCO to
the extent that it is probable that sufficient future taxable profits will be available against which
the deductible temporary differences and unused NOLCO can be utilized. Significant
management judgment is required to determine the amount of deferred tax assets that can be
recognized, based upon the likely timing and level of future taxable profits together with future tax
planning strategies. The estimates of future taxable income indicate that all temporary differences
will be realized in the future.
Unrecognized deferred tax assets of the Group are disclosed in Note 18.
4. Business Combination
On August 24, 2015, the University entered into an agreement with the previous owners of CELPI
(the “Sellers”) to purchase their interest in CELPI shares, and real and other properties consisting
of parcels of land and buildings and improvements which are owned directly by the Sellers but are
used by CELPI.
Accordingly, the University obtained control of CELPI through the execution of the agreements
on September 1, 2015 as outlined below.
Amount
Deed of Absolute Sale for the purchase of parcels of land, buildings
and improvements
Deeds of Assignment for the purchase of CELPI shares representing
90% equity interest
=270,200,000
P
3,600,000
=273,800,000
P
It was also agreed that the University will pay the Sellers the amount of =
P7.34 million to liquidate
all liabilities of CELPI, including but not limited to, retirement/separation of all CELPI
employees. The acquisition provides the University the opportunity to expand its operations in the
Southern part of Metro Manila.
The fair values of the identifiable assets and liabilities of CELPI as at the date of acquisition is
shown next page:
*SGVFS161303*
- 25 -
Fair value recognized on acquisition
Assets
Cash
Receivables
Property and equipment
Other assets
=108,234
P
10,000
836,314
6,650
961,198
Liabilities
Accounts payable and accrued expenses
Advances from officers
197,496
2,870,473
3,067,969
(P
=2,106,771)
Net liabilities
In addition to the above identifiable assets and liabilities, the Group recognized the fair value of
real and other properties acquired as a result of the business combination amounting to
=
P229.46 million and the related deferred tax asset of =
P4.07 million (see Note 18).
The fair values of land and buildings and improvements as at September 1, 2015 have been
determined based on the valuation done by a professionally qualified appraiser accredited by the
SEC. The fair values of these assets were derived based on sales comparison approach. Under
this approach, the fair value of the land was determined considering sales and listings of
comparable property in the same area as the land, also taking into account the economic
conditions prevailing at the time the valuation was made. The actual sales and listings regarded as
comparable are adjusted to account for differences in a property’s location, size and time element.
For buildings and improvements, the significant input considered in the valuation is the
reproduction cost, which is the estimated cost to create a virtual replica of the existing structure,
employing the same design and similar building materials.
The University has elected to measure the non-controlling interest in CELPI at their proportionate
share of CELPI’s net identifiable assets.
Goodwill from the acquisition is computed as follows:
Consideration transferred
Fair value of net liabilities assumed
Less:
Fair value of real and other properties acquired
Deferred tax asset on excess of acquisition cost over fair value of
real and other properties acquired
Indemnification asset
Goodwill
=281,140,000
P
2,106,771
(229,460,339)
(4,073,966)
(2,106,771)
=47,605,695
P
The goodwill arising from the acquisition can be attributed mainly to expected synergies and
increase in geographical presence and customer base.
The Sellers have contractually agreed to indemnify the University for all known liabilities until
March 31, 2016, and consequently, the University recognized indemnification asset of
=
P2.11 million at acquisition date.
Impairment Testing of Goodwill
As at May 31, 2021 and March 31, 2021, the carrying amount of goodwill amounted to
=
P47.61 million. Management assessed that no impairment losses need to be recognized.
*SGVFS161303*
- 26 -
Key assumptions used in the value-in-use calculation
As at May 31, 2021 and March 31, 2021, the recoverable amount of the CGU has been determined
based on a value-in-use calculation using cash flow projections from the five-year strategic plan
for CELPI. Tuition fee rates and number of students assumed to project revenues were based on
externally available industry data and the Group’s historical data and performance. The discount
rate used for the computation of the net present value is the cost of equity and was determined by
reference to comparable entities. For the two months ended May 31, 2021, the pre-tax discount
rates applied to cash flow projections is 10.22% and 10.43%. For the year ended March 31, 2021,
the pre-tax discount rate applied to cash flow projections is 10.58%. The long-term growth rate to
project cash flows beyond the five-year period is nil for both years.
Sensitivity to changes in assumptions
Management believes that no reasonably possible change in any of the above key assumptions
would cause the carrying value of the goodwill to materially exceed its recoverable amount.
5. Cash and Cash Equivalents
This account consists of:
Cash on hand and in banks (Note 22)
Short-term deposits (Note 22)
May 31,
2021
P
=235,993,175
244,054,550
P
=480,047,725
March 31,
2021
=267,244,891
P
243,614,078
=510,858,969
P
Cash in banks earned interest rates ranging from 0.10% to 0.38% for the two months ended
May 31, 2021, 0.05% to 0.375% for the year ended March 31, 2021, and 0.10% to 0.375% for the
year ended March 31, 2020. Short-term deposits are made for varying periods of up to three
months depending on the immediate cash requirements of the Group and earned interest rates
ranging from 1.50% to 3.50% for the two months ended May 31, 2021, 0.30% to 2.80% for the
year ended March 31, 2021, and 1.50% to 5.75% for the year ended March 31, 2020. Interest
income from cash in banks and short-term deposits amounted to =
P0.55 million for the two months
ended May 31, 2021, =
P3.57 million for the year ended March 31, 2021, and =
P4.72 million for the
year ended March 31, 2020.
Miscellaneous receipts and cash overage amounting to =
P0.01 million for the year ended
March 31, 2020 (nil for the two months ended May 31, 2021 and for the year ended
March 31, 2021) are recorded as part of other income.
6. Tuition and Other Receivables
This account consists of:
Tuition fee receivables
Advances to employees
Nontrade receivables
May 31,
2021
P
=302,195,988
32,440,606
10,133,423
March 31,
2021
=414,559,896
P
32,209,135
10,133,659
(Forward)
*SGVFS161303*
- 27 -
May 31,
2021
P
=5,689,941
750,000
154,703
768,292
352,132,953
125,041,960
P
=227,090,993
Accrued rent receivable (Note 22)
Advances to CE-IS’s stockholders
Accrued interest receivable (Note 22)
Other receivables
Less allowance for ECL
March 31,
2021
=5,453,760
P
750,000
161,456
740,702
464,008,608
119,024,603
=344,984,005
P
Tuition fee receivables are noninterest-bearing and are generally on a 120-day term for the
University and CELPI and 300-day term for CE-IS.
Advances to employees comprise of noninterest-bearing advances which are collectible through
salary deduction and are generally on a 6 to 12-month term.
Recoveries from previously written-off tuition fee receivables amounting to =
P0.09 million for the
two months ended May 31, 2021 and =
P0.77 million for the year ended March 31, 2020 (nil for the
year ended March 31, 2021) are recorded as part of other income.
The allowance for ECL pertains to the Group’s tuition fee receivables, which were impaired
through specific identification and collective assessment. The rollforward of allowance for ECL
follows:
May 31,
2021
P
=119,024,603
6,017,357
P
=125,041,960
Balance at beginning of period
Provision (Note 16)
Balance at end of period
March 31,
2021
=91,402,898
P
27,621,705
=119,024,603
P
As at May 31, 2021 and March 31, 2021 the aging analysis of tuition and other receivables follows:
Tuition fee receivables
Advances to employees
Nontrade receivables
Accrued rent receivable
Advances to CE-IS’s stockholders
Accrued interest receivable
Other receivables
Tuition fee receivables
Advances to employees
Nontrade receivables
Accrued rent receivable
Advances to CE-IS’s stockholders
Accrued interest receivable
Other receivables
Current
P
=–
32,440,606
10,133,423
5,689,941
750,000
154,703
768,292
=
P49,936,965
Current
=
P88,955,107
32,209,135
10,133,659
5,453,760
750,000
161,456
740,702
=
P138,403,819
May 31, 2021
Days Past Due
Over 30 Days
Over 60 Days
P
=−
=
P177,154,028
−
−
−
−
−
−
−
−
−
−
−
−
P
=−
=
P177,154,028
Impaired
P
= 125,041,960
−
−
−
−
−
−
P
= 125,041,960
Total
P
= 302,195,988
32,440,606
10,133,423
5,689,941
750,000
154,703
768,292
P
= 352,132,953
March 31, 2021
Days Past Due
1-30 Days Over 30 Days
Over 60 Days
=
P−
=
P−
=
P206,580,186
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
=
P−
=
P−
=
P206,580,186
Impaired
P
=119,024,603
−
−
−
−
−
−
P
=119,024,603
Total
P
=414,559,896
32,209,135
10,133,659
5,453,760
750,000
161,456
740,702
P
=464,008,608
1-30 Days
P
=−
−
−
−
−
−
−
P
=−
*SGVFS161303*
- 28 -
7. Inventories
This account consists of:
Uniforms and outfits
Materials
Supplies
May 31,
2021
P
=11,401,600
2,136,278
908,296
P
=14,446,174
March 31,
2021
=11,401,600
P
2,168,000
941,327
=14,510,927
P
The cost of uniforms and outfits charged to “Cost of services - Uniforms and outfits”amounted to
=
P1.42 million for the two months ended May 31, 2021, =
P2.92 million for the year ended
March 31, 2021, and =
P24.94 million for the year ended March 31, 2020 (see Note 16).
The cost of materials and supplies charged to “Cost of services - Material processing”amounted to
=
P0.05 million for the two months ended May 31, 2021, =
P1.64 million for the year ended
March 31, 2021, and =
P1.43 million for the year ended March 31, 2020 (see Note 16).
8. Other Current Assets
This account consists of:
May 31,
March 31,
2021
2021
Advances to suppliers
P
=42,002,246
=41,790,070
P
Prepaid insurance and licenses
25,392,359
17,595,471
Prepaid taxes
1,265,131
624,339
Cost to fulfill a contract
1,207,851
588,897
P
=69,867,587
=60,598,777
P
Advances to suppliers are advances paid to suppliers for library subscriptions, classroom materials
and supplies.
Movement in cost to fulfill a contract follows:
Balances at beginning of period
Additions
Balances at end of period
May 31,
2021
P
=588,897
618,954
P
=1,207,851
March 31,
2021
=–
P
588,897
=588,897
P
The amortization of the cost to fulfill a contract is charged to “Cost of services - Expenses for cocurricular activities”(see Note 16).
*SGVFS161303*
- 29 -
9. Property and Equipment
The composition of and the movements in this account follow:
May 31, 2021
At Cost
Furniture,
Land
Buildings and Transportation
(At Revalued
Land
Leasehold and Auxiliary
Equipment
Amount) Improvements Improvements
Cost
Balances at beginning of period P
=3,487,593,002
Additions
−
Balances at period end
3,487,593,002
Accumulated depreciation
and amortization
Balances at beginning of period
−
Depreciation and amortization
(Note 16)
−
Balances at period end
−
Net book values
P
=3,487,593,002
Laboratory
Equipment
Library
Books
P
=575,877,864
3,786,119
579,663,983
P
=412,626,087
–
412,626,087
P
=143,746,011
499,891
144,245,902
756,721,567
472,727,775
321,297,310
107,838,074
47,896
7,442,886
30,352,934
764,164,453
P
=1,649,698 P
=1,139,680,674
4,738,656
477,466,431
P
=102,197,552
2,540,415
323,837,725
P
=88,788,362
1,194,157
109,032,231
P
=35,213,671
P
=32,002,632 P
=1,903,845,127
−
–
32,002,632 1,903,845,127
30,305,038
Construction
in Progress
Subtotal
Total
P
=57,579,736 P
=3,125,677,457 P
=6,613,270,459
3,648,814
7,934,824
7,934,824
61,228,550 3,133,612,281 6,621,205,283
−
1,688,889,764
1,688,889,764
−
15,964,010
15,964,010
– 1,704,853,774 1,704,853,774
P
=61,228,550 P
=1,428,758,507 P
=4,916,351,509
*SGVFS161303*
- 30 March 31, 2021
At Cost
Land
(At Revalued
Amount)
Cost
Balances at beginning of year
Additions
Retirements/disposals
Transfers from CIP
Balances at end of year
Accumulated depreciation
and amortization
Balances at beginning of year
Depreciation and amortization
(Note 16)
Retirements/disposals
Balances at end of year
Net book values
=
P3,487,593,002
−
−
−
3,487,593,002
−
−
−
−
=
P3,487,593,002
Land
Improvements
Buildings and
Leasehold
Improvements
Furniture,
Transportation
and Auxiliary
Equipment
=
P32,002,632 =
P1,848,600,920
−
4,544,818
−
−
−
50,699,389
32,002,632 1,903,845,127
30,093,900
723,338,078
211,138
33,383,489
−
−
30,305,038
756,721,567
=
P1,697,594 =
P1,147,123,560
Laboratory
Equipment
Library
Books
=
P573,115,386
5,980,724
(3,218,246)
−
575,877,864
=
P411,771,309
854,778
−
−
412,626,087
=
P141,788,749
1,957,262
−
−
143,746,011
452,676,976
295,136,330
100,619,607
23,266,189
(3,215,390)
472,727,775
=
P103,150,089
26,160,980
−
321,297,310
=
P91,328,777
7,218,467
−
107,838,074
=
P35,907,937
Construction
in Progress
Subtotal
Total
=
P106,651,980 =
P3,113,930,976 =
P6,601,523,978
4,702,145
18,039,727
18,039,727
–
(3,218,246)
(3,218,246)
(53,774,389)
(3,075,000)
(3,075,000)
57,579,736 3,125,677,457 6,613,270,459
−
1,601,864,891
1,601,864,891
−
90,240,263
90,240,263
−
(3,215,390)
(3,215,390)
−
1,688,889,764 1,688,889,764
=
P57,579,736 =
P1,436,787,693 =
P4,924,380,695
Major developments accounted under construction in progress are as follows:
As at May 31, 2021
 Construction of 5-storey building for CE-IS amounting to =
P60.13 million
 Installation of the new payroll amounting to =
P1.10 million
As at March 31, 2021
 Construction of 5-storey building for CE-IS amounting to =
P56.48 million
 Installation of the new payroll amounting to =
P1.10 million
For the year ended March 31, 2021, the University transferred software from construction in progress amounting to P
=3.08 million (nil for the two months ended
May 31, 2021) [see Note 11].
*SGVFS161303*
- 31 -
As at March 31, 2021, the Group’s construction in progress pertaining to the building improvement
for CE-IS is completed and the related cost was transferred to buildings and leasehold improvements.
There were no transfers or completion of construction in progress as of May 31, 2021.
The Group received laboratory equipment with a total value of =
P15.43 million in 2020 (nil for the two
months ended May 31, 2021 and for the year ended March 31, 2021) as donation from various third
parties.
For the year ended March 31, 2021, the Group retired/disposed certain properties with aggregate cost
amounting to =
P3.22 million (nil for the two months ended May 31, 2021). Loss on
retirement/disposal of these properties amounted to =
P0.003 million for the year ended March 31, 2021
and P
=0.42 million for the year ended March 31, 2020 (nil for the two months ended May 31, 2021).
There were no proceeds from sale of property and equipment as of May 31, 2021 and
March 31, 2021.
Revaluation of Land
As at May 31, 2021 and March 31, 2021, land at revalued amounts consists of:
Cost at beginning and end of period
Revaluation increment - gross
May 31,
2021
P
=537,177,782
2,950,415,220
P
=3,487,593,002
March 31,
2021
=537,177,782
P
2,950,415,220
=3,487,593,002
P
Based on the University’s policy, the appraisal of its properties is done within three to five years. The
latest appraisal was done in May 2019 by a professionally qualified appraiser accredited by the SEC
(see Note 25). This is also the fair values of the parcels of land as of May 31, 2021 which were
validated by checking the current prices of the commercial properties nearby the areas posted on
guaranteed property advertisement sites.
With the expiration of the contract agreement between the University and the lessee in 2020, the land
previously classified as “Investment Property”was reclassified as “Property and equipment”. The
deemed cost of the transferred property is the fair value of the land as of March 31, 2019, which is not
materially different from the fair value as of May 31, 2021 validated by checking the current prices of
the commercial properties nearby the area posted on guaranteed property advertisement sites
(see Note 10).
The fair value of the land as at May 31, 2021, March 31, 2021 and March 31, 2020 amounted to
=
P3,487.59 million.
Deferred tax liability related to the revaluation surplus amounted to =
P295.04 million as at
May 31, 2021 and March 31, 2021 (see Note 18).
Key assumptions used in the value in use (VIU) calculation
As at May 31, 2021 and March 31, 2021, the recoverable amount of the CGU has been determined
based on a VIU calculation using five-year cash flow projections. Key assumptions in the VIU
calculation of the CGU are most sensitive to the following:
 Future revenues and revenue growth rates. Cash flow projections based on financial budgets
approved by management covering a five-year period (2022-2026) and considers the impact of
COVID-19 on their estimates.
*SGVFS161303*
- 32 

Long-term growth rates. Management does not include a long-term growth rate in the VIU
calculation for conservative purposes as this is difficult to predict.
Discount rate (10.22% and 10.43% for May 31, 2021 and 10.58% for March 31, 2021). The
discount rate used for the computation of the net present value is the weighted average cost of
capital and was determined by reference to the Parent Company’s capital structure.
Sensitivity to changes in assumptions
Management believes that no reasonably possible change in any of the above key assumptions would
cause the carrying value of property and equipment to materially exceed its recoverable amount.
10. Investment Property
On July 5, 2017, the University purchased a parcel of land for a total consideration of
=
P152.75 million. At the time of the purchase, the parcel of land is under an operating lease agreement
with a third party that will end in fiscal year 2022. On January 5, 2018, the lease agreement was
amended to change the lessor from the previous owner to the University and the end of lease term
from fiscal year 2022 to fiscal year 2019.
On November 15, 2019, the agreement between the University and the lessee has already expired.
Excavation and fencing have already been started in the property to be developed into a school
facility, thus, the investment property was reclassified as property and equipment starting on that
date.
The rental income arising from this lease amounted to =
P1.63 million for the year ended
March 31, 2020 (nil for the two months ended May 31, 2021 and for the year ended March 31, 2021).
The latest appraisal was done in May 2019 by a professionally qualified appraiser accredited by the
SEC (see Note 25).
11. Other Noncurrent Assets
This account consists of:
Prepaid taxes
Advances to contractors
Software costs
Refundable security deposits
Financial assets at FVOCI
May 31,
2021
P
=10,282,170
6,974,177
1,922,917
1,268,161
94,680
P
=20,542,105
March 31,
2021
=11,473,657
P
6,957,971
2,102,045
1,435,562
87,912
=22,057,147
P
The effect of discounting noncurrent portion of advances to employees and refundable security
deposits is immaterial.
Advances to contractors pertain to advances paid to contractors for planned construction of various
facilities.
*SGVFS161303*
- 33 -
Software costs represent the costs incurred by the Group for its accounting and school management
software. The composition of and movements in this account is shown below:
Cost
Balances at beginning of period
Transfers from CIP (Note 9)
Additions
Balances at end of period
Accumulated amortization
Balances at beginning of period
Amortization (Note 16)
Balances at end of period
May 31,
2021
March 31,
2021
P
=8,893,000
–
–
8,893,000
=5,713,000
P
3,075,000
105,000
8,893,000
6,790,955
179,128
6,970,083
P
=1,922,917
5,651,750
1,139,205
6,790,955
=2,102,045
P
Financial assets at FVOCI investments pertain to quoted equity securities held by the Group.
Quoted equity securities pertain to the Group’s investments in listed shares of stocks and are valued at
the closing stock price as at May 31, 2021 and March 31, 2021.
Cost of quoted equity investments and dividend income pertaining to these follows:
Cost of quoted equity investments
Dividend income
May 31,
2021
P
=411,859
–
March 31,
2021
=411,859
P
–
March 31,
2020
=411,859
P
−
Movements in carrying value of financial assets at FVOCI investments for the two months ended
May 31, 2021 and for the year ended March 31, 2021 follow:
Balances at beginning period
Fair value gains
Balances at end of period
May 31,
2021
P
=87,912
6,768
P
=94,680
March 31,
2021
=79,920
P
7,992
=87,912
P
Changes in revaluation reserve on financial assets at FVOCI investments for the two months ended
May 31, 2021 and for the year ended March 31, 2021 follow:
Balances at beginning of period
Change in revaluation reserve on financial assets
at FVOCI
Balances at end of period
May 31,
2021
(P
=323,947)
March 31,
2021
(P
=331,939)
6,768
(P
=317,179)
7,992
(P
=323,947)
*SGVFS161303*
- 34 -
12. Accounts Payable and Other Current Liabilities
This account consists of:
Accounts payable
Accrued expenses:
Employee benefits
Rent (Note 22)
Utilities
Others
Payable to students
Contract liabilities
Due and collected
Due but not yet collected
Deposits
Alumni fees payable
May 31,
2021
P
=275,100,550
March 31,
2021
=270,783,126
P
68,990,321
3,021,421
1,601,476
14,106,033
46,724,553
66,234,127
3,021,421
2,089,438
16,607,193
32,019,171
17,804,164
–
9,035,846
2,951,440
P
=439,335,804
26,932,154
115,361,610
9,012,098
2,931,304
=544,991,642
P
Accounts payable are noninterest-bearing and are generally on 30 to 60-day terms.
Accrued rent pertains to the contingent rent payable to its affiliate equivalent to 40% of the annual
income derived from the leased premises (see Note 22).
Other accrued expenses pertain to accrued purchases, accruals for audit fees, janitorial and security
services, advertising services and other services.
Payable to students are advanced collections from students or refunds of miscellaneous fees to
students to be applied to the next school year or semester.
Deposits include refundable deposits for toga rentals and security deposits on leases.
Alumni fees payable includes graduating students’payments for alumni registration and identification
cards which are remitted to the alumni foundation.
As at May 31, 2021, contract liabilities amounting to =
P17.80 million will be recognized as revenue in
the following year. Contract liabilities amounting to =
P142.29 million as of March 31, 2021 were
recognized as revenue for the two months ended May 31, 2021.
As at May 31, 2021 and March 31, 2021, other noncurrent liability pertains to contract liability that is
estimated to be recognized as revenue within two to five years.
For the year ended March 31, 2021, the University reversed the recorded provision for losses
amounting to =
P27.76 million. The reversal is treated as an income under “Other income”in the
consolidated statements of income.
*SGVFS161303*
- 35 -
13. Equity
Capital Stock
The University’s shares are listed and traded in the Philippine Stock Exchange.
Details of capital stock as at May 31, 2021 and March 31, 2021 are presented below.
Shares Authorized
800,000,000
Shares Issued and
Outstanding
372,414,400
Par Value
=1
P
Amount
=372,414,400
P
Below is the summary of the University’s track record of registration of securities under the Revised
Securities Regulation Code (SRC):
Number
of Shares
305,000
152,500
297,375
993,174
2,237,356
Date
November 10, 1986
August 9, 1988
February 23, 1994
September 18, 1995
March 17, 1998
Issue Price
=100
P
100
100
100
100
As at May 31, 2021 and March 31, 2021, the total number of shares registered under the SRC are
372,414,400 shares being held by 1,010 and 1,012, respectively, stockholders.
Cash Dividends
The University’s BOD approved the declaration of the following cash dividends:
Date of
Declaration
June 28, 2019
Date of Record
August 5, 2019
Date of Payment
August 29, 2019
Amount
=74,482,880
P
Dividend
per Share
=0.20
P
As at May 31, 2021 and March 31, 2021, the carrying value of dividends payable amounted to
=
P108.62 million and =
P109.02 million, respectively.
Retained Earnings
On August 28, 2020, the University’s BOD approved and authorized the re-appropriation of
=
P336.00 million for the detailed expansion program and projects of the Group. These projects include
the planned construction of the following in the Malolos Campus:
 5-storey dormitory for the students, faculty and employees of the University;
 2-storey building for the School of Dentistry;
 2-storey building to house a food court with students’area in the ground floor and
commercial spaces in the second floor;
 Renovation of the Centrodome;
 Multi-purpose activity center and swimming pool for use of students; and
 Renovation and extension of buildings and various laboratories.
The estimated date of completion of the above projects as set by the University is within five years.
*SGVFS161303*
- 36 -
On June 28, 2019, the University’s BOD approved the appropriation of =
P80.00 million for the construction
of the following:



Eight (8)-storey building in Mendiola Campus;
Construction of swimming pools and renovation of classroom in Malolos campus; and
Extension of the expansion projects of the University.
Outstanding appropriations of retained earnings as at April 1, 2019 follow:
a. On April 26, 2013, the Group’BOD approved the detailed expansion program and projects of the
University relating to the appropriated retained earnings amounting to =
P450.00 million. These
projects include the construction of a 3-storey building for the setting up of a pre-school,
elementary and high school in preparation for the K-12 program and to support the five-year
development plan for Malolos campus. The retained earnings was reappropriated on
June 28, 2019.
The estimated date of completion of the above projects as set by the Group is within 2 years.
b. On June 23, 2017, the University’s BOD approved the expansion projects of the University
relating to the additional appropriated retained earnings amounting to =
P210.00 million. These
projects include the planned construction of the following:
 3-storey building for Science-related courses in CEU Malolos;
 Additional investments in CE-IS for construction of building in anticipation of increased
number of students in S.Y. 2021-2022;
 Additional investment in CELPI for construction of building in anticipation of increased
number of students in S.Y. 2021-2022; and
 Modernization of CEU Manila campus.
The estimated date of completion of the above projects as set by the University is within
five years.
c. On March 27, 2015, the University’s BOD approved the detailed expansion program and projects
of the University relating to the additional appropriated retained earnings amounting to
=
P336.00 million. The University estimated that these projects will be completed within 5 years.
These projects include the budget for capital expenditures for the fiscal year April 2015 to
March 2016 and the following in the Malolos Campus:
 Planned construction of a 5-storey dormitory for the students, faculty and employees of the
University;
 Planned construction of a 2-storey building for the School of Dentistry;
 Planned construction of a 2-storey building to house a food court with students’area in the
ground floor and commercial spaces in the second floor;
 Renovation of the Centrodome;
 Planned construction of a multi-purpose activity center and swimming pool for use of
students; and
 Renovation and extension of buildings and various laboratories.
This appropriation was reversed by the University on March 31, 2020 upon expiration of the
period for the appropriation.
*SGVFS161303*
- 37 -
In accordance with Revised Securities Regulation Code Rule 68, Annex 68-D, the University’s
retained earnings available for dividend declaration as at May 31, 2021 amounted to
=
P490.61 million.
The consolidated retained earnings include the deficit of the CEUHI amounting to =
P31.95 million,
=
P32.69 million and =
P34.13 million as of May 31, 2021, March 31, 2021 and March 31, 2020,
respectively.
Effect of transactions with non-controlling interest
In April 1, 2019, the University purchased an additional 4% ownership to CE-IS using the advances
to CE-IS stockholders amounting to =
P0.50 million. This resulted to a transfer of non-controlling
interest to equity reserve amounting to =
P2.04 million.
Dividends declared by CE-IS to NCI amounted to =
P3.98 million for the year ended March 31, 2021
and P
=1.5 million for the year ended March 31, 2020 (nil for the two months ended May 31, 2021).
14. Tuition and Other Fees
This account consists of:
Tuition fees
Other fees
Income from other school
services
May 31,
2021
(two months)
P
=117,098,247
67,007,053
March 31,
2021
(one year)
=683,105,729
P
337,057,803
March 31,
2020
(one year)
=699,390,839
P
375,789,105
16,126,415
P
=200,231,715
109,044,555
=1,129,208,087
P
239,276,872
=1,314,456,816
P
Other fees include registration fees, health services fees, library fees, laboratory fees, development
fees, practicum fees, internship fees and review fees.
Income from other school services comprise of fees for diploma and certificates, transcript of records,
student handbooks, identification cards, entrance, qualifying and special examinations, laboratory
materials, application fees for foreign students, uniforms and outfits, and various collections for
specific items or activities.
Revenue from contracts with customers for tuition and other fees and miscellaneous fees are as
follows:
May 31, 2021
(two months)
Tuition fees and Miscellaneous fees
Timing of Recognition other school fees
(Note 15)
Over time
=
P198,230,040
=
P4,200
Point in time
2,001,675
775,741
=
P200,231,715
=
P779,941
March 31, 2021
(one year)
Tuition fees and Miscellaneous fees
other school fees
(Note 15)
=
P1,118,026,763
=
P3,086,857
11,181,324
7,664,224
=
P1,129,208,087
=
P10,751,081
March 31, 2020
(one year)
Tuition fees and
Miscellaneous
other school fees
fees (Note 15)
=
P1,251,511,561
=
P20,956,951
62,945,255
16,258,744
=
P1,314,456,816
=
P37,215,695
Receivables and contract liabilities are disclosed in Notes 6 and 12, respectively.
Deferred tuition fees amounting to =
P88.07 million as of March 31, 2021 (nil as of May 31, 2021)
pertains to the tuition and other fees to be recognized as revenue after the reporting date or next
school term.
*SGVFS161303*
- 38 -
15. Miscellaneous Fees
This account consists of:
Dental pre-board fees
Laboratory fees
Handling fees
Photograph fees
Dental materials
Professional and continuing
education
Insurance fees
Locker fees
Service commissions
Swimming fees
Others
May 31,
2021
(two months)
P
=380,898
349,962
40,263
6,839
–
March 31,
2021
(one year)
=2,557,937
P
2,503,066
1,066,126
1,015,989
1,958,509
March 31,
2020
(one year)
=5,452,500
P
4,296,367
300,636
2,177,691
11,483,573
–
–
–
–
–
1,979
P
=779,941
321,668
293,053
1,583
529
–
1,032,621
=10,751,081
P
1,802,290
268,807
4,064,610
449,978
4,564,590
2,354,653
=37,215,695
P
Deferred miscellaneous fees amounting to =
P0.89 million as of March 31, 2021 (nil as of
May 31, 2021) pertains to income from other school services, except for the sale of books and
uniforms, to be recognized as revenue in the remaining months after statement of financial position
date or next school term.
Others include income from sale of promotional items, sale of scrap and penalty from students.
16. Costs and Expenses
This account consists of:
Cost of Services
Salaries and wages
SSS contributions and other
employee benefits
Depreciation and amortization
(Notes 9, 11 and 19)
Retirement expense (Note 17)
Management information
Light and water
Library
Sports and academic development
Expenses for co-curricular
activities (Notes 8 and 22)
Professional fees
Uniforms and outfits (Note 7)
May 31,
2021
(two months)
P
=67,869,923
March 31,
2021
(one year)
=378,393,285
P
March 31,
2020
(one year)
=404,249,056
P
27,039,845
261,361,752
253,560,806
19,052,662
6,058,588
5,999,436
4,064,697
2,105,232
2,011,009
108,836,616
24,249,070
9,061,232
24,381,854
13,736,096
26,181,300
115,951,592
24,001,785
22,439,754
84,000,611
8,261,563
40,418,831
2,009,204
1,515,340
1,418,506
2,284,696
7,231,194
2,919,463
34,757,845
7,352,470
24,940,726
(Forward)
*SGVFS161303*
- 39 -
Affiliation
Directors’and administrative
committee
Stationery and office supplies
Recruitment and placement
(Note 22)
Instructional and academic
expenses
Material processing (Note 7)
Laboratory
Guidance and counseling
Comprehensive and oral
examinations
Publications
Registration expenses of students
University chapel expenses
Rental (Notes 19 and 22)
May 31,
2021
(two months)
P
=1,029,500
March 31,
2021
(one year)
=2,433,694
P
March 31,
2020
(one year)
=3,589,564
P
764,000
650,663
4,661,013
2,587,477
3,792,878
16,136,544
287,844
719,744
12,501,286
128,800
57,230
28,000
10,300
1,608,890
1,635,440
1,453,698
106,039
2,067,166
1,433,711
3,106,366
425,251
10,210
4,974
500
–
–
P
=142,116,463
585,498
(2,458)
40,997
1,800
–
=874,468,390
P
2,840,598
152,482
922,651
338,080
610,812
=1,067,852,428
P
May 31,
2021
(two months)
P
=6,017,357
3,774,082
2,989,844
2,699,888
1,492,749
March 31,
2021
(one year)
=27,621,705
P
25,033,984
20,756,190
24,137,568
11,153,689
March 31,
2020
(one year)
=39,201,246
P
55,075,673
30,838,167
25,261,276
45,925,001
1,023,696
265,414
251,468
138,301
73,224
–
1,576
112,638
P
=18,840,237
10,276,229
1,541,312
3,225,691
8,875,006
1,673,612
824,180
33,347
816,227
=135,968,740
P
7,710,975
619,181
4,092,442
13,422,079
1,657,959
7,055,004
140,741
5,727,958
=236,727,702
P
General and Administrative Expenses
Provision for ECL (Note 6)
Janitorial and security services
Transportation and communication
Taxes and licenses
Repairs and maintenance
Entertainment, amusement and
recreation
Advertisement
Insurance
Clinical expenses
Membership fees and dues
Program expenses
Bank charges
Miscellaneous
17. Retirement Plan
The University has a funded, noncontributory defined benefit retirement plan which provides for
death, disability and retirement benefits for all of its permanent employees. The annual contributions
to the retirement plan consist of a payment covering the current service cost for the year plus
payments toward funding the unfunded actuarial liabilities. Benefits are based on the employees’
years of service and final plan salary.
*SGVFS161303*
- 40 -
The fund is administered by two trustee banks under the supervision of the Board of Trustees (BOT)
of the plan. The BOT is responsible for the investment strategy of the plan.
In 2015, the University approved a new collective bargaining agreement with its employees with
changes in the increments on employee retirement benefits.
The latest actuarial valuation study of the defined benefit retirement plan of the University was made
as at May 31, 2021.
*SGVFS161303*
- 41 -
Changes in the retirement liability are as follows:
As at and for the two months ended May 31, 2021
Retirement Expense in the Consolidated
Statements of Income
Balance
at Beginning
Current
of Period Service Cost
Present value of defined
benefit obligation
Fair value of plan assets
=
P392,621,749
(166,091,586)
=
P226,530,163
P
= 4,444,131
–
P
= 4,444,131
Net Interest
P
= 2,843,548
(1,229,091)
P
= 1,614,457
Subtotal
=
P7,287,679
(1,229,091)
=
P 6,058,588
Benefits
Paid
(P
= 9,987,228)
9,987,228
=
P–
Return on
Plan Assets
(Excluding
Amount
Included in
Net Interest)
Experience
Adjustments
=
P–
(2,028,591)
(P
= 2,028,591)
(P
= 14,745,662)
–
(P
= 14,745,662)
Remeasurements in OCI
Actuarial
Actuarial
Changes
Changes
Arising
Arising from Changes
from Changes
in
in Financial Demographic
Assumptions
Assumptions
=
P3,678,243
–
=
P3,678,243
=
P–
–
=
P–
Subtotal
(P
= 11,067,419)
(2,028,591)
(P
= 13,096,010)
Contribution
by Employer
=
P–
–
=
P–
Balance
at End
of Period
P
= 378,854,781
(159,362,040)
=
P219,492,741
As at and for the year ended March 31, 2021
Retirement Expense in the Consolidated
Statements of Income
Present value of defined
benefit obligation
Fair value of plan assets
Balance
Current
at Beginning
of Year Service Cost
Net Interest
Subtotal
Benefits
Paid
=
P360,394,547 =
P15,532,675
(169,033,062)
–
=
P191,361,485 =
P15,532,675
=
P17,073,987
(8,357,592)
=
P8,716,395
=
P32,606,662
(8,357,592)
=
P24,249,070
(P
=49,496,599)
49,496,599
=
P–
Return on
Plan Assets
(Excluding
Amount
Included in
Net Interest)
Experience
Adjustments
=
P–
3,802,469
=
P3,802,469
=
P39,945,857
–
=
P39,945,857
Remeasurements in OCI
Actuarial
Changes
Actuarial
Arising
Changes
Arising from Changes
in
from Changes
Demographic
in Financial
Assumptions
Assumptions
=
P9,171,282
–
=
P9,171,282
=
P–
–
=
P–
Subtotal
Contribution
by Employer
Balance
at End
of Year
=
P49,117,139
3,802,469
=
P52,919,608
=
P–
(42,000,000)
(P
=42,000,000)
=
P392,621,749
(166,091,586)
=
P226,530,163
The number of plan members as at May 31, 2021 and March 31, 2021 is 614 and 618, respectively.
Actual return on plan assets as at May 31, 2021 and March 31, 2021 amounted to =
P3.26 million and =
P4.56 million, respectively.
*SGVFS161303*
- 42 -
The fair value of plan assets as at May 31, 2021 and March 31, 2021 follows:
Long-term investments:
Debt securities
Equity securities
Cash and cash equivalents
Loans and receivables
Others assets
Liabilities
May 31,
2021
March 31,
2021
P
=77,233,240
70,626,101
11,031,928
571,485
70,039
159,532,793
(170,753)
P
=159,362,040
=76,879,088
P
67,849,096
21,040,735
398,066
171,719
166,338,704
(247,118)
=166,091,586
P
All plan assets do not have quoted prices in an active market, except for equity and debt securities.
Cash and cash equivalents are with reputable financial institutions and are deemed to be standard
grade.
The plan assets pertain to diversified investments and are not exposed to concentration risk.
The overall investment policy and strategy of the University’s defined benefit plan is guided by the
objective of achieving an investment return which, together with contributions, ensures that there will
be sufficient assets to pay retirement benefits as they fall due while also mitigating the various risks
of the retirement plan.
The Group expects to contribute =
P30.20 million to the defined benefit retirement plan in fiscal year
2022.
The cost of defined retirement plan, as well as the present value of defined benefit obligation, is
determined using actuarial valuation. The actuarial valuation involves making various assumptions.
The principal assumptions used in determining the pension for the defined benefit retirement plan are
shown below:
Discount rates
Future salary increases
Mortality rate
Average expected future years of
service
Turnover rate
May 31,
2021
4.52%
3.00%
2017 Philippine
Intercompany
Mortality
March 31,
2021
4.65%
3.00%
2017 Philippine
Intercompany
Mortality
March 31,
2020
4.97%
3.00%
2017 Philippine
Intercompany
Mortality
11
A scale ranging
from 12%
at age 18 to 0%
at age 65
11
A scale ranging
from 12%
at age 18 to 0%
at age 65
11
A scale ranging
from 12%
at age 18 to 0%
at age 65
*SGVFS161303*
- 43 -
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the defined benefit obligation as of the reporting date, assuming all other
assumptions were held constant:
Increase (Decrease)
in Defined Benefit Obligation
May 31,
March 31,
2021
2021
Discount rates
+1.00%
-1.00%
Future salary increases
+1.00%
-1.00%
(P
=26,176,079)
29,780,301
(P
=27,539,233)
31,379,151
31,900,368
(25,041,599)
33,503,409
(29,861,427)
The methods and types of assumptions used in preparing the sensitivity analysis did not change as at
May 31, 2021 and March 31, 2021.
Shown below is the maturity analysis of the undiscounted benefit payments:
Less than 1 year
More than 1 year to 5 years
More than 5 years to 10 years
More than 10 years to 15 years
More than 15 years to 20 years
More than 20 years
May 31,
2021
P
=36,496,159
144,188,440
189,235,638
203,151,799
112,432,837
194,181,354
March 31,
2021
=41,217,644
P
138,134,300
201,331,914
219,376,376
20,545,708
219,999,321
18. Income Taxes
All domestic subsidiaries qualifying as private educational institutions are subject to tax under
Republic Act No. 8424 (RA 8424), An Act Amending the National Internal Revenue Code, as
amended, and For Other Purposes, which was passed into law effective January 1, 1998. Title II
Chapter IV - Tax on Corporation - Sec 27(B) of the said Act defines and provides that: a “Proprietary
Educational Institution”is any private school maintained and administered by private individuals or
groups with an issued permit to operate from Department of Education, or CHED, or Technical
Education and Skills Development Authority, as the case may be, in accordance with the existing
laws and regulations and shall pay a tax of 10.00% on its taxable income. Regular corporations,
which include the Hospital, is subject to regular corporate income tax of 30%.
President Rodrigo Duterte signed into law on March 26, 2021 the Corporate Recovery and Tax
Incentives for Enterprises (CREATE) Act to attract more investments and maintain fiscal prudence
and stability in the Philippines. Republic Act (RA) 11534 or the CREATE Act introduces reforms to
the corporate income tax and incentives systems. It takes effect 15 days after its complete publication
in the Official Gazette or in a newspaper of general circulation or April 11, 2021.
The following are the key changes to the Philippine tax law pursuant to the CREATE Act which have
an impact on the Group:

Effective July 1, 2020, regular corporate income tax (RCIT) rate is reduced from 30% to 25% for
domestic and resident foreign corporations. For domestic corporations with net taxable income
*SGVFS161303*
- 44 -
not exceeding =
P5.00 million and with total assets not exceeding P
=100.00 million (excluding land
on which the business entity’s office, plant and equipment are situated) during the taxable year,
the RCIT rate is reduced to 20%. RCIT is applicable to the Hospital.

Minimum corporate income tax (MCIT) rate reduced from 2% to 1% of gross income effective
July 1, 2020 to June 30, 2023. MCIT is applicable to the Hospital.

Preferential income tax rate for proprietary educational institutions and hospitals, which are
nonprofit, is reduced from 10% to 1% effective July 1, 2020 to June 30, 2023. This is applicable
to the University, CELPI and CE-IS.

Imposition of improperly accumulated earnings tax (IAET) is repealed.
Applying the provisions of CREATE, the Group is now subjected to a lower regular income tax rate.
The provision for (benefit from) income tax consists of:
March 31,
2021
(one year)
May 31,
2021
(two months)
Current
1%/3.25%/10%/25% income
tax on special corporations
MCIT
Deferred
P
=565,264
–
(2,648,625)
(P
=2,083,361)
=4,920,329
P
19,735
(9,389,816)
(P
=4,449,752)
March 31,
2020
(one year)
=13,364,937
P
9,415
(4,441,203)
=8,933,149
P
The reconciliation of income before tax computed at statutory income tax rate to provision for income
tax in the consolidated statements of income is shown below.
Statutory provision for income tax
Effect of change in tax rate
Tax effects of:
Interest income subjected to
final tax
Effect of higher tax rate
of the Hospital
Non taxable income from the
reversal of provisions
Nondeductible expenses
Deductible temporary difference
and carry forward benefits
of NOLCO and MCIT for
which no deferred income
tax was recognized
Effective provision for (benefit
from) income tax
May 31,
2021
(two months)
P
=394,462
(2,473,398)
March 31,
2021
(one year)
=4,901,024
P
(8,424,986)
March 31,
2020
(one year)
=7,586,200
P
–
(5,529)
(179,022)
(680,598)
1,104
6,970
9,415
–
–
(902,174)
148,436
−
1,930,337
–
–
87,795
(P
=2,083,361)
(P
=4,449,752)
=8,933,149
P
*SGVFS161303*
- 45 -
The components of the Group’s net deferred tax liabilities follow:
Deferred tax liabilities on:
Revaluation gain on land
Undepreciated cost of property and equipment
Cost to fulfill a contract
Deferred tax assets on:
Retirement liability*
Allowance for ECL
Excess of acquisition cost over fair value of net
assets acquired from business combination
Unamortized excess of contribution over
the normal cost
Nonrefundable contract liability
Difference between the actual lease payments
and PFRS 16 related accounts
Accrued expenses
NOLCO
Unrealized foreign currency exchange loss
Others
Net deferred tax liabilities
May 31,
2021
March 31,
2021
P
=295,041,522
139,170,720
12,079
434,224,321
=295,041,522
P
140,647,546
5,889
435,694,957
16,019,150
12,504,196
16,313,854
12,457,705
4,073,966
4,073,966
3,535,308
1,520,001
3,551,436
1,381,893
1,465,605
835,865
13,643
1,444
25,838
39,995,016
P
=394,229,305
1,459,524
844,196
13,643
4,560
25,851
40,126,628
=395,568,329
P
*Net of deferred income tax asset from Other Comprehensive Income amounting to =
P11,086,693 and =
P12,396,294 as
of May 31, 2021 and March 31, 2021, respectively.
As allowed under RA 8424, being a private educational institution, the Group claims the tax
deductions of capital expenditures for tax purposes in the year incurred. The Group recognized
deferred tax liability on the undepreciated cost of property and equipment which pertains to the
remaining cost of property and equipment of the University and CELPI not yet depreciated but was
already recognized as tax deduction.
The details of NOLCO which can be claimed in the future by the University, CELPI and the Hospital
as credit against the regular corporate income are shown below.
Inception
Year
March 31, 2021
March 31,
2021
=
P1,364,338
2019
6,768,983
=
P8,133,321
Addition
Application
Expiration
May 31, 2021
=
P–
−
=
P–
=
P–
−
=
P–
=
P–
–
=
P–
=
P1,364,338
6,768,983
=
P8,133,321
Expiry
Year
2026
2022
On September 30, 2020 the BIR issued Revenue Regulations No. 25-2020 implementing Section
4(bbbb) of “Bayanihan to Recover As One Act”which states that the NOLCO incurred for taxable
years 2020 and 2021 can be carried over and claimed as deduction from gross income for the next
five (5) consecutive taxable years immediately following the year of such loss. Hence, the incurred
NOLCO of the companies within the Group in taxable year 2021 can be claimed as deduction from
the regular taxable income from taxable years 2022 to 2016, in pursuant to the Bayanihan to Recover
As One Act.
*SGVFS161303*
- 46 The details of MCIT which can be claimed in the future by the Hospital used as credit against income
tax due are shown below.
Inception
Year
March 31, 2021
March 31,
2021
=
P19,735
2020
9,415
2019
1,512
=
P30,662
Addition
Application
Expiration
May 31, 2021
=
P–
–
−
=
P–
=
P−
−
−
=
P−
=
P−
−
–
=
P–
=
P19,735
9,415
1,512
=
P30,662
Expiry
Year
2024
2023
2022
As at May 31, 2021, March 31, 2021 and 2020, the Group did not recognize deferred tax assets on the
following temporary differences deemed to be not recoverable:
NOLCO
MCIT
May 31,
2021
P
=6,768,983
30,662
P
=6,799,645
March 31,
2021
=6,768,983
P
30,662
=6,799,645
P
March 31,
2020
=11,054,153
P
10,927
=11,065,080
P
Issuance of Revenue Regulation 14-2021:
To ease the burden of taxation among propriety educational institutions, especially during this time of
COVID-19 pandemic, and taking into account the pending Bills in Congress seeking to amend
Section 27 (B) of the National Internal Revenue Code (NIRC) of 1997, as amended, the BIR issued
Revenue Regulation (RR) 14-2021 on July 28, 2021 to finally clarify the income taxation of schools,
the implementation of the provisions regarding propriety educational institution’s tax treatment of RR
No. 5-2021 dated April 8, 2021 on the definition of proprietary educational institutions, insofar as it
includes therein the phrase "which are non-profit", are hereby suspended pending passage of such
appropriate legislation.
19. Leases
Group as Lessor
The Group leases out portions of its spaces to concessioners which are renewable every two years.
Total rent income recognized amounted to =
P0.59 million for the two months ended May 31, 2021,
=
P2.3 million for the year ended March 31, 2021 and =
P17.96 million for the year ended
March 31, 2020 (see Note 22). Rental deposits recognized as at May 31, 2021 and March 31, 2021
amounted to =
P3.21 million.
As lessor, future minimum rentals under operating leases are shown below.
Within 1 year
After 1 year but not more than 5 years
More than 5 years
May 31,
2021
P
=4,478,791
14,545,240
2,428,866
P
=21,452,897
March 31,
2021
=4,478,791
P
14,826,666
3,233,904
=22,539,361
P
Accrued rental payments not yet billed as of May 31, 2021 and March 31, 2021 amounted to
=
P3.02 million
*SGVFS161303*
- 47 -
Group as Lessee
On July 29, 2004, the Group entered into a 25-year operating lease, which commenced on
January 1, 2005, with Philtrust Bank for the lease of its land and building in Makati. The contract
requires for =
P24.00 million fixed annual rentals plus 40.00% of the annual net income before tax of
the Group’s Makati-Buendia campus.
The Group recognized right-of-use asset and lease liability. The rollforward analysis of right-of-use
asset follows:
Cost
Balances at beginning and end of period
Accumulated Amortization
Balances at beginning of period
Amortization (Note 16)
Balances at end of period
Net Book Value
May 31,
2021
March 31,
2021
P
=205,121,481
=205,121,481
P
34,914,295
2,909,524
37,823,819
P
=167,297,662
17,457,147
17,457,148
34,914,295
=170,207,186
P
May 31,
2021
P
=179,142,645
1,698,590
(4,000,000)
P
=176,841,235
March 31,
2021
=192,501,760
P
10,640,885
(24,000,000)
=179,142,645
P
P
=14,276,673
162,564,562
P
=176,841,235
P14,141,832
=
165,000,813
=179,142,645
P
The rollforward analysis of lease liability follows:
Balances at beginning of period
Interest expense (Note 20)
Payments
Balances at end of period
Lease liability - current
Lease liability - noncurrent
The following are the amounts recognized in the consolidated company statements of income:
Amortization expense of right-of-use asset
(Note 16)
Interest expense on lease liability
Expenses relating to short-term lease (Note 16)
Total amount recognized in parent company
statements of income
May 31,
2021
(two months)
March 31,
2021
(one year)
March 31,
2020
(one year)
P
=2,909,524
1,698,590
–
=17,457,148
P
10,640,885
–
=17,457,147
P
11,380,279
610,812
P
=4,608,114
=28,098,033
P
=29,448,238
P
Shown below is the maturity analysis of the undiscounted lease payments:
Within one year
After 1 year but not more than 5 years
More than 5 years
May 31,
2021
P
=24,000,000
96,000,000
110,000,000
P
=230,000,000
March 31,
2021
=24,000,000
P
96,000,000
114,000,000
=234,000,000
P
*SGVFS161303*
- 48 Other leased assets
In addition, the Group entered into a one-year operating lease with a third party for water services
which will automatically be renewed for another year under the same terms and conditions. The
University’s rental expense arising from this contract amounted to =
P0.61 million for the year ended
March 31, 2020 (nil for the two months ended May 31, 2021 and for the year ended March 31, 2021)
(see Note 16). The Group applies the ‘short-term lease’recognition exemption and low-value asset
recognition exemption for this lease.
20. Interest Expense
The account consists of the following:
Interest from lease liability
(Note 19)
Interest from deficiency
documentary stamp taxes
and other percentage taxes
May 31,
2021
(two months)
March 31,
2021
(one year)
March 31,
2020
(one year)
P
=1,698,590
=10,640,885
P
=11,380,279
P
–
P
=1,698,590
1,240,768
=11,881,653
P
73,540
=11,453,819
P
*SGVFS161303*
- 49 -
21. Segment Reporting
The Group operates in geographical segments. Financial information on the operations of these segments are summarized as follows:
As at and for the two months ended May 31, 2021
Segment assets
Segment liabilities
Capital expenditures
Segment revenues
Expenses
Depreciation and amortization expense
Net income (loss)
Mendiola
=
P3,376,023,919
370,863,153
730,895
144,689,480
97,801,640
9,796,228
46,961,382
Malolos
P
= 1,429,993,533
10,002,089
3,648,814
17,754,984
15,943,918
1,869,348
1,811,066
Makati-Buendia
=
P244,687,977
209,679,272
–
19,734,888
24,265,425
4,364,902
(4,530,537)
MakatiLegaspi
=
P605,334,645
7,003,216
–
5,352,472
10,430,144
2,282,553
(5,077,672)
Makati-Legaspi
Hospital
(Pre-operating)
=
P32,393,797
343,746
–
377,775
403,318
–
(25,543)
CE-IS
=
P151,133,222
27,529,096
2,783,486
10,659,152
8,898,124
181,489
1,761,028
CELPI
=
P56,076,662
4,176,065
771,629
3,677,077
5,057,079
558,142
(1,453,544)
Adjustments
=
P47,605,695
722,340,203
–
–
–
–
2,083,361
Total
=
P5,943,249,450
1,351,936,840
7,934,824
202,245,828
162,799,648
19,052,662
41,529,541
CELPI
=
P58,045,877
7,823,329
2,380,263
29,425,872
31,200,088
3,247,675
(1,774,216)
Adjustments
=
P47,605,695
731,119,140
–
–
–
–
4,449,752
Total
=
P6,095,203,401
1,557,213,509
18,039,727
1,173,584,137
1,022,777,662
108,836,616
155,256,227
CELPI
=
P55,820,736
5,832,833
6,891,650
46,711,409
45,608,746
3,040,430
1,029,122
Adjustments
=
P47,605,695
715,856,961
–
–
–
–
(8,933,149)
Total
=
P5,988,492,025
1,554,163,705
136,941,304
1,392,319,404
1,316,451,672
115,951,592
66,934,583
As at and for year ended March 31, 2021
Segment assets
Segment liabilities
Capital expenditures
Segment revenues
Expenses
Depreciation and amortization expense
Net income (loss)
Mendiola
=
P3,474,512,891
504,729,606
7,994,218
762,852,148
613,925,565
53,670,973
148,926,583
Malolos
=
P1,452,916,258
25,791,036
4,505,287.00
98,773,555
111,151,610
11,216,089
(12,378,055)
Makati-Buendia
=
P257,682,630
249,386,205
59,239
129,518,741
146,751,609
26,189,412
(17,232,868)
MakatiLegaspi
=
P612,467,547
569,986
36,805
55,705,345
67,323,496
13,695,317
(11,618,151)
Makati-Legaspi
Hospital
(Pre-operating)
=
P32,248,617
347,937
–
2,831,068
2,370,759
–
460,309
CE-IS
=
P159,723,886
37,446,270
3,063,915
94,477,408
50,054,535
817,150
44,422,873
As at and for the year ended March 31, 2020
Segment assets
Segment liabilities
Capital expenditures
Segment revenues
Expenses
Depreciation and amortization expense
Net income (loss)
Mendiola
=
P3,426,479,902
519,228,548
50,609,689
842,584,088
774,072,840
61,396,211
68,584,788
Malolos
=
P1,392,200,840
35,237,779
61,295,098
104,761,707
155,920,896
12,163,116
(51,159,189)
Makati-Buendia
=
P287,877,250
243,534,598
4,885,739
103,426,747
166,062,303
26,623,330
(62,635,556)
MakatiLegaspi
=
P637,385,357
15,737,135
8,134,116
105,820,894
112,292,283
12,383,717
(6,471,389)
Makati-Legaspi
Hospital
(Pre-operating)
=
P30,107,854
317,159
–
3,182,483
3,848,819
–
(666,335)
CE-IS
=
P111,014,391
18,418,692
5,125,012
185,832,076
58,645,785
344,788
127,186,291
*SGVFS161303*
- 50 -
For the two months ended May 31, 2021 and for the years ended March 31, 2021 and 2020, there
were no intersegment revenues and all revenues are made to external customers.
As at May 31, 2021, March 31, 2021 and 2020, segment assets for each segment do not include
“Goodwill”amounting to =
P47.61 million.
Segment liabilities for each segment do not include the following:
March 31,
2021
=395,568,329
P
226,530,163
109,015,657
4,991
=731,119,140
P
May 31,
2021
P
=394,229,305
219,492,741
108,618,157
–
P
=722,340,203
Deferred tax liabilities - net
Retirement liability
Dividends payable
Income tax payable
March 31,
2020
=410,250,106
P
191,361,485
105,755,874
8,489,496
=715,856,961
P
Net income for each segment does not include “Provision for (benefit from) income tax”amounting
to (P
=2.08 million) for the two months ended May 31, 2021, (P
=4.45 million) for the year ended
March 31, 2021, and =
P8.93 million for the year ended March 31, 2020.
22. Related Party Transactions
Parties are related if one party has the ability, directly or indirectly, to control the other party or
exercise significant influence over the other party in making financial and operating decisions; and
the parties are subject to common control or common significant influence. Related parties may be
individuals or corporate entities.
Affiliates are entities that are subject to common control.
Significant transactions with related parties include the following:
Category
Affiliates
PhilTrust Bank
Cash
Interest income
Short-term deposits
Interest income
Rent
Manila Bulletin Publishing
Corporation
Recruitment and placement
(Note 16)
TH Coffee Services Philippine
Corp.
Rental income (Note 19)
As at and for the two months ended May 31, 2021
Amount/Volume Outstanding Balance
Terms and Conditions/Nature
P
=182,999,401
135,891
136,241
480,610
4,000,000
157,015
152,341
Karate Kid Japanese Fastfood
Rental income (Note 19)
–
P
=109,955,840 Savings deposit with interest rate at 0.50%
–
242,007,607 Money market placements at 6 to
129,374 53 days with interest ranging from
2.08% to 3.20%
3,021,421 Unsecured; Rent of building in Makati
– Advertising services, terms vary as to type
and frequency of advertisements
199,620
Payable the following month. Rental of
commercial space
20,160 Payable the following month. Rental of
commercial space
*SGVFS161303*
- 51 -
Category
PhilTrust Bank
Cash
Interest income
Short-term deposits
Interest income
Rent (Note 12)
Manila Hotel
Expenses for co-curricular
activities (Note 16)
Manila Bulletin Publishing
Corporation
Recruitment and placement
(Note 16)
TH Coffee Services Philippine
Corp.
Rental income (Note 19)
Karate Kid Japanese Fastfood
Rental income (Note 19)
Category
PhilTrust Bank
Cash
Interest income
Short-term deposits
Interest income
Rent (Note 12)
Manila Hotel
Expenses for co-curricular
activities (Note 16)
Manila Bulletin Publishing
Corporation
Recruitment and placement
(Note 16)
TH Coffee Services Philippine
Corp.
Rental income (Note 19)
Karate Kid Japanese Fastfood
Rental income (Note 19)
Amount/Volume
As at and for the year ended March 31, 2021
Outstanding Balance
Terms and Conditions/Nature
=
P38,287,191
483,874
42,076,597
2,868,934
=
P141,006,795
–
73,168,015
161,456
24,000,000
3,021,421
39,900
–
Rental of room and facilities for
commencement exercises
719,744
–
Advertising services, terms vary as to
type and frequency of advertisements
189,117
47,279
Payable the following month. Rental of
commercial space
60,480
20,160
Payable the following month. Rental of
commercial space
Amount/Volume
Savings deposit with interest rate at
0.50%
Money market placements at 6 to
53 days with interest ranging from
2.08% to 3.20%
Unsecured; Rent of building in Makati
As at and for the year ended March 31, 2020
Outstanding Balance
Terms and Conditions/Nature
=
P25,144,377
373,661
17,705,067
4,453,791
=
P102,235,730
–
180,402,700
273,546
Savings deposit with interest rate at
0.50%
Money market placements at 6 to
53 days with interest ranging from
2.08% to 3.20%
Unsecured; Rent of building in Makati
43,713,055
3,021,421
924,067
–
Rental of room and facilities for
commencement exercises
2,409,532
–
Advertising services, terms vary as to
type and frequency of advertisements
1,737,794
–
Payable the following month. Rental of
commercial space
513,000
151,200
Payable the following month. Rental of
commercial space
Generally, related party transactions are settled in cash.
Transactions with Retirement Plans
Under PFRSs, certain post-employment benefit plans are considered as related parties. The
University’s retirement plan is in the form of a trust administered by two trustee banks.
Shown in the next page are the transactions with the retirement fund for May 31, 2021 and
March 31, 2021:
*SGVFS161303*
- 52 -
Beginning of year
Interest income
Actual gain (loss) on plan assets (excluding interest)
Actual contributions
Benefits paid
End of year
May 31,
2021
P
=166,091,586
1,229,091
2,028,591
–
(9,987,228)
P
=159,362,040
March 31,
2021
=169,033,062
P
8,357,592
(3,802,469)
42,000,000
(49,496,599)
=166,091,586
P
As at May 31, 2021 and March 31, 2021, the retirement fund has 8,072,299 shares or 2.17% interest
in the University. The total unrealized gain (loss) recognized from these investments amounted to
=
P2.83 million and (P
=3.80 million) for the two months ended May 31, 2021 and for the year ended
March 31, 2021, respectively.
No limitations and restrictions are provided and voting rights over these shares are exercised by a
trust officer.
There are no other transactions by the Group or its related parties with the retirement fund for the two
months ended May 31, 2021 and for the years ended March 31, 2021 and 2020.
Remuneration of Key Management Personnel
The Group’s key management personnel include all management committee officers. The summary
of compensation of key management personnel follows:
Short-term employee salaries and benefits
Post-employment benefits
May 31,
2021
(two months)
P
=3,009,311
777,619
P
=3,786,930
March 31,
2021
(one year)
=16,458,215
P
4,692,858
=21,151,073
P
March 31,
2020
(one year)
=18,267,668
P
4,441,697
=22,709,365
P
There are no agreements between the Group and any of its directors and key officers providing for
benefits upon termination of employment, except for such benefits to which they may be entitled
under the Group’s retirement plan.
Approval requirements and limits on the amount and extent of related party transactions
The Board of Directors shall approve all material related party transactions before their
commencement. Material related party transactions shall be identified taking into account the related
party registry. Transactions amounting to ten percent (10%) or more of the total assets of the Group
that were entered into with an unrelated party that subsequently becomes a related party may be
excluded from the limits and approval process requirement.
23. Notes to Consolidated Statements of Cash Flows
Noncash investing activities pertain to the following:
a. Retirement/disposal of assets - For the years ended March 31, 2021 and 2020, the University
retired/disposed furniture and fixtures and laboratory equipment with aggregate cost of
=
P3.22 million and =
P14.93 million, respectively, (nil for the two months ended May 31, 2021) and
accumulated depreciation of =
P3.22 million and =
P14.43 million, respectively (nil for the two
months ended May 31, 2021) [see Note 9].
*SGVFS161303*
- 53 -
b. Donation income - For the year ended March 31, 2020, the University received various laboratory
and optical equipment from third parties as donations amounting to =
P15.43 million (nil for the
two months ended May 31, 2021 and for the year ended March 31, 2021) (see Note 9).
c. Reclassification from investment property to property and equipment - For the year ended
March 31, 2020, the contract between the lessee and the University expired, thus, the investment
property amounting to =
P151.98 million was reclassified as property and equipment (see Notes 9
and 10).
d. Transfer of non-controlling interest to equity reserve - For the year ended March 31, 2020,
advances to CE-IS’s stockholders recorded under “Tuition and other receivables”amounting to
=
P0.50 million was used to purchase an additional 4% ownership over CE-IS (see Note 13). This
resulted to a transfer of non-controlling interest to equity reserve amounting to =
P2.04 million.
e. Transfer of software - For the year ended March 31, 2021, the University transferred software
amounting to =
P3.06 million from construction in progress (nil for the two months ended
May 31, 2021 and for the year ended March 31, 2020) [see Notes 9 and 11].
24. Basic/Diluted EPS
The income and share data used in the basic/diluted EPS computations are as follows:
Net income (a)
Weighted average number of
outstanding common shares (b)
Basic/diluted earnings per share
(a/b)
May 31,
2021
(two months)
P
=41,396,930
March 31,
2021
(one year)
=152,556,823
P
March 31,
2020
(one year)
=62,346,136
P
372,414,400
372,414,400
372,414,400
P
=0.11
=0.41
P
=0.17
P
There were no potential dilutive financial instruments for the two months ended May 31, 2021 and
for the years ended March 31, 2021 and 2020.
25. Fair Value Measurement
The Group uses a hierarchy for determining and disclosing the fair value of its assets and liabilities.
The tables below summarize the carrying amounts and the fair values of the Group’s financial and
nonfinancial assets and liabilities as at May 31, 2021 and March 31, 2021.
Carrying
Value
Assets measured at fair value:
Financial assets
Financial assets at FVOCI
P
=94,680
Nonfinancial assets
Land classified as property and equipment
valued under revaluation model
3,487,593,002
P
=3,487,687,682
May 31, 2021
Fair Value Measurement Using
Quoted Prices
Significant
in Active Unobservable
Total Fair
Markets
Inputs
Value
(Level 1)
(Level 3)
P
=–
P
=94,680
– 3,487,593,002
P
=94,680 P
=3,487,593,002
3,487,593,002
P
=3,487,687,682
P
=94,680
*SGVFS161303*
- 54 -
Carrying Value
Assets measured at fair value:
Financial assets
Financial assets at FVOCI
=
P87,912
Nonfinancial assets
Land classified as property and equipment
valued under revaluation model
3,487,593,002
=
P3,487,680,914
March 31, 2021
Fair Value Measurement Using
Quoted Prices
Significant
in Active
Unobservable
Markets
Inputs
(Level 1)
(Level 3) Total Fair Value
=
P87,912
=
P–
=
P87,912
– 3,487,593,002
=
P87,912 =
P3,487,593,002
3,487,593,002
=
P3,487,680,914
The methods and assumptions used by the University in estimating the fair value of the financial and
nonfinancial assets and liabilities are as follows:
Cash and Cash Equivalents, Tuition and Other Receivables, Accounts Payable and Other Current
Liabilities (Excluding Statutory Obligations), Dividends Payable
Fair values approximate carrying amounts given the short-term nature of these accounts.
Property and Equipment and Investment Property
The tables below summarize the valuation techniques and the significant unobservable inputs used in
the valuation of land recorded as property equipment and investment property:
Land
Valuation Techniques
Sales Comparison
Approach/Market
Approach
Significant Unobservable
Inputs
Internal factors:
Location
Improvements
Elevation
Corner Influence
Use
Development
Size
Time Element
Range
(Weighted Average)
+10% to -20%
+0% to -20%
+0% to +20%
+0% to +5%
-20% to +20%
+10% to +20%
-20% to +20%
+0%
The range of the prices per square meter used in the valuation is shown below.
Land
Valuation techniques
Sales Comparison
Approach/Market
Approach
Location
Comparable analysis:
External factor (net price)
Range (Weighted
Average)
Manila - Site 1 and 2
=
P133,178 to =
P157,729 per
square meter (sqm)
Makati - Malugay
=
P247,500 to =
P360,000 per
sqm
Makati - Legaspi
=
P270,000 to =
P500,000 per
sqm
Malolos, Bulacan
=
P8,550 to =
P16,200 per
sqm
*SGVFS161303*
- 55 -
Valuation techniques
Location
Range (Weighted
Average)
Las Piñas
=
P19,655 to =
P25,200 per
sqm
The description of the valuation technique and inputs used in valuation of the University’s land
follows:
Market Data
Approach
Location
Improvements and
developments
Corner Influence
Use
Elevation
Size
Time Element
A comparable method where the value of the property is based on
sales and listings of comparable property by reducing reasonable
comparative sales and listings to a common denominator. This is done
by adjusting the differences between the subject property and those
actual sales and listings regarded as comparable. The properties used
as basis of comparison are situated within the immediate vicinity of
the subject property. Comparison would be premised on the factors of
location, size and shape of the lot, and time element.
For a tract of land designated for a purpose or site occupied or
available for occupancy, one of the key factors in land valuation is the
location or area of preference.
Renovations in the land including the construction of building and
installation of machineries and equipment should not be included in
the valuation.
Enhancement in usefulness accrues to those lots located or near street
corners especially in retail business districts.
Includes considerations factored in such as zoning, water and riparian
rights, environmental issues, building codes and flood zones.
Height of the property above or below a fixed reference point.
Physical magnitude, extent or bulk, relative or proportionate
dimensions. The value of the lot varies in accordance to the size of the
lots. Basic rule of thumb is the bigger the lot size the lower the value,
the smaller the lot size the higher the value.
The measured or measurable period during action or condition exist.
It is usually associated with the period in which the property can be
sold in an open market within reasonable time.
Sensitivity analyses to the significant changes in unobservable inputs are shown below:
 Significant increases (decreases) in the price (per sqm) would result in a significantly higher
(lower) fair value measurement.
 Significant factor in the location of the property (e.g., closer to a main road or secondary road)
would result in a significantly higher (lower) fair value measurement
 Significant improvements and developments (deterioration) in the location would result in a
significantly higher (lower) fair value measurement.
 Significant increases (decreases) in the influence of the corners of the property would result in a
significantly higher (lower) fair value measurement.
 Significant change in the use of the property would result in a significant change in fair value
measurement.
 Significant increases (decreases) in the elevation of the property would result in a significantly
lower (higher) fair value measurement.
*SGVFS161303*
- 56 

Significant increases (decreases) in the size of the property would result in a significantly lower
(higher) fair value (per sqm) measurement.
Significant increases (decreases) in the period in which the property can be sold in an open
market would result in a significantly lower (higher) fair value measurement.
The appraiser considers the highest and best use of the asset which takes into account the use of the
asset that is physically possible, legally permissible and financially feasible.
Quoted Equity Securities Classified as Investments at FVOCI
Fair value is based on quoted prices.
26. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments comprise of cash and cash equivalents. The main
purpose of these financial instruments is to fund the Group’s operations and capital expenditures.
The Group has various other financial instruments such as tuition and other receivables, refundable
deposits, equity investments, accounts payable and accrued expenses excluding statutory payables
and dividends payable that arise directly from operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and
foreign currency risk.
Credit Risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur financial loss.
The Group’s risk management policy to mitigate credit risk on its receivables from students include
the refusal of the Group to release pertinent records like examination permit, transcript of records and
transfer credentials, if applicable, until the student’s account is cleared/paid. As at the reporting date,
there are no significant concentrations of credit risk.
As at May 31, 2021 and March 31, 2021, the analysis of financial assets is shown below:
May 31, 2021
Loans and receivables:
Cash and cash equivalents*
Tuition and other receivables
Tuition fee receivables
Advances to employees
Accrued rent receivable
Advances to CE-IS‘s stockholders
Accrued interest receivable
Other receivables
Refundable security deposits
Investments at FVOCI
Neither Past
Due nor
Impaired
Past Due
ECL
Gross of ECL
P
=479,684,225
P
=–
P
=–
P
=479,684,225
302,195,988
(125,041,960)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
P
=302,195,988 (P
= 125,041,960)
177,154,028
32,440,606
5,689,941
750,000
154,703
10,901,715
1,268,161
94,680
P
=708,138,059
–
32,440,606
5,689,941
750,000
154,703
10,901,715
1,268,161
94,680
P
=530,984,031
* Excluding cash on hand
*SGVFS161303*
- 57 March 31, 2021
Loans and receivables:
Cash and cash equivalents*
Tuition and other receivables
Tuition fee receivables
Advances to employees,
including noncurrent portion
Accrued rent receivable
Advances to CE-IS‘s stockholders
Accrued interest receivable
Other receivables
Refundable security deposits
Investments at FVOCI
Neither Past
Due nor
Impaired
Past Due
ECL
Gross of ECL
=
P510,495,469
=
P–
=
P–
=
P510,495,469
88,955,107
325,604,789
(119,024,603)
295,535,293
32,209,135
5,453,760
750,000
161,456
10,874,361
1,435,562
87,912
=
P650,422,762
–
–
–
–
–
–
–
=
P325,604,789
–
–
–
–
–
–
–
(P
=119,024,603)
32,209,135
5,453,760
750,000
161,456
10,874,361
1,435,562
87,912
=
P857,002,948
* Excluding cash on hand
The Group’s neither past due nor impaired receivables are high grade receivables which, based on
experience, are highly collectible.
As at May 31, 2021 and March 31, 2021, the age of the entire Group’s past due but not impaired
tuition fee receivables is disclosed in Note 6.
Tuition Fee Receivables
The Group uses a provision matrix to calculate ECL for tuition fee receivables. The provision rates
are determined based on the Group’s historical observed default rates analyzed in accordance to days
past due by grouping of customers based on customer type. The Group adjusts historical default rates
to forward-looking default rate by determining the closely related economic factors affecting each
customer segment. At each reporting date, the observed historical default rates are updated and
changes in the forward-looking estimates are analyzed.
Set out below is the information about the credit risk exposure on the Group’s tuition fee receivables
using a provision matrix as of May 31, 2021 and March 31, 2021.
As of May 31, 2021:
Current
Estimated tuition fee receivable at
default
Expected credit losses
Expected credit losses - lifetime
Days Past Due
1 to less 3
< 1 quarter
quarters
P
=9,650,745 P
=116,540,263
P
=–
P
=7,303,973
P
=–
P
=–
Over 3
quarters
Total
P
=25,450,487 P
=150,554,493
P
=3,670,238 P
=105,309,594
P
=–
P
=8,758,155
P
=302,195,988
P
=116,283,805
P
=8,758,155
Total
=
P414,559,896
=
P110,266,448
=
P8,758,155
As of March 31, 2021:
Estimated tuition fee receivable at
default
Expected credit losses
Expected credit losses - lifetime
Current
< 1 quarter
Days Past Due
1 to less 3
quarters Over 3 quarters
=
P210,016,526
=
P4,478,605
=
P–
=
P–
=
P–
=
P–
=
P52,608,461 =
P151,934,909
=
P3,621,810 =
P102,166,033
=
P–
=
P8,758,155
*SGVFS161303*
- 58 -
Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments
associated with financial assets and financial liabilities. Liquidity risk may result from a counterparty
failing on repayment of a contractual obligation or inability to generate cash inflows as anticipated.
The Group seeks to manage its liquidity risk to be able to meet its operating cash flow requirements,
finance capital expenditures and maturing debts. As an inherent part of its liquidity risk management,
the Group regularly evaluates its projected and actual cash flows. To cover its short-term and longterm funding requirements, the Group intends to use internally generated funds and external
financing, if needed.
The maturity profile of the Group’s financial assets and financial liabilities as at May 31, 2021 and
March 31, 2021 based on contractual undiscounted receipts and payments as shown below:
Cash on hand
Financial assets:
Cash in banks and cash equivalents
Tuition and other receivables:
Tuition fee receivables
Accrued interest receivable
Others:
Advances to employees
Nontrade
Accrued rent receivable
Advances to CE-IS’s
stockholders
Other receivables
Refundable security deposits
Financial assets at FVOCI
Accounts payable and accrued
expenses:
Accounts payable*
Accrued expenses
Payable to students
Deposits
Alumni fees payable
Lease liability**
Dividends payable
Net undiscounted financial assets
(liabilities)
On Demand
P
=363,500
May 31, 2021
Less than
3 Months 3 to 12 Months Over 1 Year
P
=–
P
=–
P
=–
Total
P
=363,500
235,629,675
244,054,550
–
–
479,684,225
177,154,028
–
–
154,703
–
–
–
–
177,154,028
154,703
32,440,606
10,133,423
5,689,941
–
–
–
–
–
–
–
–
–
32,440,606
10,133,423
5,689,941
750,000
768,292
–
–
462,929,465
–
–
–
–
244,209,253
–
–
–
–
–
–
–
1,268,161
94,680
1,362,841
750,000
768,292
1,268,161
94,680
708,501,559
245,998,268
20,960,812
46,724,553
9,035,846
2,951,440
–
108,618,157
434,289,076
–
66,758,439
–
–
–
–
–
66,758,439
–
–
–
–
–
24,000,000
–
24,000,000
–
–
–
–
–
206,000,000
–
206,000,000
245,998,268
87,719,251
46,724,553
9,035,846
2,951,440
230,000,000
108,618,157
731,047,515
P
=28,640,389
P
=177,450,814
(P
= 24,000,000) (P
= 204,637,159) (P
= 22,545,956)
* Excluding statutory payables of =
P 29,102,282
**Including interest to maturity amounting to =
P53,158,765
Cash on hand
Financial assets:
Cash in banks and cash equivalents
Tuition and other receivables:
Tuition fee receivables
Accrued interest receivable
On Demand
=
P363,500
March 31, 2021
Less than
3 Months 3 to 12 Months
Over 1 Year
=
P–
=
P–
=
P–
Total
=
P363,500
266,881,391
243,614,078
–
–
510,495,469
295,535,293
–
–
161,456
–
–
–
–
295,535,293
161,456
(Forward)
*SGVFS161303*
- 59 -
On Demand
Others:
Advances to employees,
Nontrade
Accrued rent receivable
Advances to CE-IS’s
stockholders
Other receivables
Refundable security deposits
Financial assets at FVOCI
Financial liabilities:
Accounts payable and accrued
expenses:
Accounts payable*
Accrued expenses
Payable to students
Deposits
Alumni fees payable
Lease liability**
Dividends payable
Net undiscounted financial assets
(liabilities)
March 31, 2021
Less than
3 Months 3 to 12 Months
Over 1 Year
=
P32,209,135
10,133,659
5,453,760
=
P–
–
–
=
P–
–
750,000
740,702
–
–
612,067,440
Total
–
=
P–
–
–
=
P32,209,135
10,133,659
5,453,760
–
–
–
–
243,775,534
–
–
–
–
–
–
–
1,435,562
87,912
1,523,474
750,000
740,702
1,435,562
87,912
857,366,448
243,345,498
25,864,320
32,019,171
9,012,098
2,931,304
–
109,015,657
422,188,048
–
62,087,859
–
–
–
–
–
62,087,859
–
–
–
–
–
24,000,000
–
24,000,000
–
–
–
–
–
210,000,000
–
210,000,000
243,345,498
87,952,179
32,019,171
9,012,098
2,931,304
234,000,000
109,015,657
718,275,907
=
P189,879,392
=
P181,687,675
(P
=24,000,000) (P
=208,476,526) =
P139,090,541
* Excluding statutory payables amounting to =
P27,437,628
** Including interest to maturity amounting to =
P 54,857,355
The Group relies on internally-generated cash to fund its working capital needs, capital expenditures
and cash dividends. The Group will continuously assess its overhead costs to determine opportunities
to decrease them. As laid down in the Group’s strategic plan, the Group is committed to attain its
goal on sound financial position by accomplishing the objectives to implement cost saving measures,
increase income of existing revenue generating programs and activities and expand revenue
generating activities.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates.
The Group’s principal transactions are carried out in Peso and its exposure to foreign currency risk
arises primarily from cash in banks and short-term deposits that are denominated in United States
dollar ($ or USD).
To mitigate the Group’s exposure to foreign currency risk related to foreign currency-denominated
accounts, management keeps the amount of these assets at a low level.
The following table shows the foreign currency-denominated accounts of the Group as at
May 31, 2021 and March 31, 2021 in USD:
Cash in banks
Short-term deposits
May 31,
2021
$20,455
117,846
$138,301
March 31,
2021
$15,629
117,783
$133,412
*SGVFS161303*
- 60 -
In translating the foreign currency-denominated accounts to Peso amounts, the exchange rate used
was =
P47.69 to $1.00 and =
P48.53 to $1.00 as at May 31, 2021 and March 31, 2021, respectively.
The table below demonstrates the sensitivity to a reasonably possible change in the Peso/USD
exchange rate, with all other variables held constant, of the Group’s net income before tax. There is
no impact on the Group’s equity.
Percentage change in exchange rate
Effect on net income before tax
March 31, 2021
May 31, 2021
1.02%
-1.02%
28.00%
-28.00%
P
=67,275
(P
=67,275) P
=1,812,856 (P
=1,812,856)
Interest Rate Risk
The Group’s exposure to market risk for changes in interest rates is not significant to the consolidated
financial statements. The financial instruments of the Group are either noninterest-bearing or has
minimal interest rate exposure due to the short-term nature of the account (that is, cash equivalents).
Capital Management
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital
ratios in order to support its business and maximize shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to
shareholders, return capital to shareholders or issue new shares. No changes were made to the
objectives and policies or processes during the two months ended May 31, 2021 and years ended
March 31, 2021 and 2020.
The Group monitors capital using a debt-to-equity ratio which is debt divided by total equity. Debt
includes accounts payable and other current liabilities and lease liability.
The table below shows how the Group computes for its debt-to-equity ratio as at May 31, 2021 and
March 31, 2021.
Accounts payable and other current liabilities
(Note 12)
Lease liability (Note 19)
Total debt (a)
Total equity (b)
Debt-to-equity ratio (a/b)
May 31,
2021
March 31,
2021
P
=439,335,804
176,841,235
P
=616,177,039
P
=4,591,312,610
P
=0.13:1
=544,991,642
P
179,142,645
=724,134,287
P
=4,537,989,892
P
=0:16:1
P
As of May 31, 2021 and March 31, 2021, the Group was able to meet its capital management
objectives and was successful in achieving its capital management policies.
*SGVFS161303*
- 61 -
27. Changes in Liabilities Arising from Financing Activities
Changes in the Group’s liabilities arising from financing activities are presented below:
May 31, 2021
Lease
Dividends
liability
payable
(Note 19)
(Note 13)
Balances at beginning
of year
P
=179,142,645
Adoption of PFRS 16
–
Interest expense
(Notes 19 and 20)
1,698,590
Dividend declaration
including
dividends to NCI
(Note 13)
−
Cash payments
including
dividends to NCI
(Note 13)
(4,000,000)
P
=176,841,235
March 31, 2021
Lease
Dividends
liability
payable
(Note 19)
(Note 13)
March 31, 2020
Lease
Dividends
liability
payable
(Note 19)
(Note 13)
P
=109,015,657 =
P192,501,760
–
−
=
P105,755,874
−
=
P−
205,121,481
=
P104,576,634
−
–
10,640,885
−
11,380,279
−
−
−
3,975,000
−
75,982,880
(715,217) (24,000,000)
=
P109,015,657 =
P192,501,760
(74,803,640)
=
P105,755,874
(397,500) (24,000,000)
P
=108,618,157 =
P179,142,645
28. Standards Issued but not yet Effective
Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the Group
does not expect that the future adoption to have a significant impact on its consolidated financial
statements.
Effective beginning on or after January 1, 2022 (FY2022 for the Group)
 Amendments to PFRS 3, Reference to the Conceptual Framework
 Amendments to PAS 16, Plant and Equipment: Proceeds before Intended Use
 Amendments to PAS 37, Onerous Contracts –Costs of Fulfilling a Contract
 Annual Improvements to PFRSs 2018-2020 Cycle
 Amendments to PFRS 1, First-time Adoption of Philippines Financial Reporting Standards,
Subsidiary as a first-time adopter
 Amendments to PFRS 9, Financial Instruments, Fees in the ’10 per cent’test for
derecognition of financial liabilities
 Amendments to PAS 41, Agriculture, Taxation in fair value measurements
Effective beginning on or after January 1, 2023 (FY2023 for the Group)
 Amendments to PAS 1, Classification of Liabilities as Current or Non-current
 PFRS 17, Insurance Contracts
Deferred effectivity
 Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
The Group continues to assess the impact of the above new and amended accounting standards and
interpretations effective subsequent to May 31, 2021 on the Group’s financial statements in the period of
initial application. Additional disclosures required by these amendments will be included in the financial
statements when these amendments are adopted.
*SGVFS161303*
- 62 -
29. Other Matters
COVID-19 Outbreak
In March 13, 2020, in a move to contain the COVID-19 outbreak, the Office of the President of the
Philippines issued a Memorandum directive to impose stringent social distancing measures in the
National Capital Region effective March 15, 2020.
On March 16, 2020, Presidential Proclamation No. 929 was issued, declaring a State of Calamity
throughout the Philippines for a period of six (6) months and imposed an Enhanced Community
Quarantine (ECQ) throughout the island of Luzon until April 12, 2020, which was subsequently
extended to April 30, 2020 and further extended until May 15, 2020. The ECQ shifted to modified
enhanced community quarantine (MECQ) until May 31, 2020 and to general community quarantine
(GCQ) for NCR and certain provinces until the first part of the third quarter.
Subsequently, MECQ was once again imposed on select areas including Metro Manila and few other
provinces in the Philippines from August 4 to 18, 2020, then back again to GCQ until
March 28, 2021.
Due to the exponential rise in COVID-19 cases, the Office of the President once again imposed ECQ
for Metro Manila, Bulacan, Cavite, Laguna and Rizal from March 29, 2021 to April 4, 2021.
Afterwards, ECQ was shifted to MECQ until May 14, 2021. Subsequently, MECQ was shifted to
GCQ until August 5, 2021.
On August 6, 2021, the Office of the President placed Metro Manila under ECQ from August 6 to
August 20, 2021 due to rising COVID-19 cases. This was subsequently shifted to MECQ until
September 15, 2021. Beginning September 16, 2021, Metro Manila was placed under granular
lockdown on alert level 4 under GCQ until September 30, 2021.
The COVID-19 pandemic has caused disruptions in the Group’s business activities. As this global
problem evolves, the Group will continually adapt and adjust its business model according to the
business environment in the areas where the Group operates, in full cooperation with the national and
local government units.
30. Events after the Reporting Date
On July 30, 2021, The University’s BOD approved the declaration of cash dividend of =
P0.40 per
share amounting to =
P148,965,760 payable to all stockholders as of August 27, 2021 record date
payable on September 22, 2021.
*SGVFS161303*
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 8891 0307
Fax: (632) 8819 0872
ey.com/ph
BOA/PRC Reg. No. 0001,
August 25, 2021, valid until April 15, 2024
SEC Accreditation No. 0012-FR-5 (Group A),
November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT
The Stockholders and the Board of Directors
Centro Escolar University
9 Mendiola Street
San Miguel, Manila
We have audited the consolidated financial statements of Centro Escolar University (the “University”) as
at May 31, 2021 and for the two months ended May 31, 2021, on which we have rendered the attached
report dated September 28, 2021.
In compliance with the Revised Securities Regulation Code Rule 68, we are stating that the University
has one thousand (1,000) shareholders owning one hundred (100) or more shares each.
SYCIP GORRES VELAYO & CO.
Djole S. Garcia
Partner
CPA Certificate No. 0097907
SEC Accreditation No. 1768-A (Group A),
September 3, 2019, valid until September 2, 2022
Tax Identification No. 201-960-347
BIR Accreditation No. 08-001998-102-2018,
October 18, 2018, valid until October 17, 2021
PTR No. 8534301, January 4, 2021, Makati City
September 28, 2021
*SGVFS161303*
A member firm of Ernst & Young Global Limited
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 8891 0307
Fax: (632) 8819 0872
ey.com/ph
BOA/PRC Reg. No. 0001,
August 25, 2021, valid until April 15, 2024
SEC Accreditation No. 0012-FR-5 (Group A),
November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT
ON SUPPLEMENTARY SCHEDULES
The Stockholders and the Board of Directors
Centro Escolar University
9 Mendiola Street
San Miguel, Manila
We have audited, in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Centro Escolar University and Subsidiaries (the “Group”) as at May 31, 2021 and
March 31, 2021, and for the two months ended May 31, 2021 and for the years ended March 31, 2021 and
2020, included in this Form 17-A and have issued our report thereon dated September 28, 2021. Our
audits were made for the purpose of forming an opinion on the consolidated financial statements taken as
a whole. The schedules listed in the Index to the Financial Statements and Supplementary Schedules are
the responsibility of the Company’s management. These schedules are presented for purposes of
complying with the Revised Securities Regulation Code Rule 68, and are not part of the consolidated
financial statements. These schedules have been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, fairly state, in all material respects, the financial
information required to be set forth therein in relation to the consolidated financial statements taken as a
whole.
SYCIP GORRES VELAYO & CO.
Djole S. Garcia
Partner
CPA Certificate No. 0097907
SEC Accreditation No. 1768-A (Group A),
September 3, 2019, valid until September 2, 2022
Tax Identification No. 201-960-347
BIR Accreditation No. 08-001998-102-2018,
October 18, 2018, valid until October 17, 2021
PTR No. 8534301, January 4, 2021, Makati City
September 28, 2021
*SGVFS161303*
A member firm of Ernst & Young Global Limited
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 8891 0307
Fax: (632) 8819 0872
ey.com/ph
BOA/PRC Reg. No. 0001,
August 25, 2021, valid until April 15, 2024
SEC Accreditation No. 0012-FR-5 (Group A),
November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT ON
COMPONENTS OF FINANCIAL SOUNDNESS INDICATORS
The Stockholders and the Board of Directors
Centro Escolar University
9 Mendiola Street
San Miguel, Manila
We have audited, in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Centro Escolar University and Subsidiaries (the “Group”) as at May 31, 2021 and
March 31, 2021 and for the two months ended May 31, 2021 and for the years ended March 31, 2021 and
2020, and have issued our report thereon dated September 28, 2021. Our audits were made for the
purpose of forming an opinion on the consolidated financial statements taken as a whole. The
Supplementary Schedule of Financial Soundness Indicators, including their definitions, formulas,
calculation, and their appropriateness or usefulness to the intended users, are the responsibility of the
Group’s management. These financial soundness indicators are not measures of operating performance
defined by Philippine Financial Reporting Standards (PFRS) and may not be comparable to similarly
titled measures presented by other companies. This schedule is presented for the purpose of complying
with the Revised Securities Regulation Code Rule 68 issued by the Securities and Exchange Commission,
and is not a required part of the basic consolidated financial statements prepared in accordance with
PFRS. The components of these financial soundness indicators have been traced to the Group’s
consolidated financial statements as at May 31, 2021 and March 31, 2021 and for the two months ended
May 31, 2021 and for the two years ended March 31, 2021 and 2020 and no material exceptions were
noted.
SYCIP GORRES VELAYO & CO.
Djole S. Garcia
Partner
CPA Certificate No. 0097907
SEC Accreditation No. 1768-A (Group A),
September 3, 2019, valid until September 2, 2022
Tax Identification No. 201-960-347
BIR Accreditation No. 08-001998-102-2018,
October 18, 2018, valid until October 17, 2021
PTR No. 8534301, January 4, 2021, Makati City
September 28, 2021
*SGVFS161303*
A member firm of Ernst & Young Global Limited
CENTRO ESCOLAR UNIVERSITY
ANNEX 68-E: SCHEDULE OF FINANCIAL SOUNDNESS INDICATORS
Ratio
Formula
May 31,
2021
1.41:1.00
March 31,
2021
1.23:1.00
March 31,
2020
0.98:1.00
Current
Current assets over current
liabilities
Acid-test
ratio
Quick assets (Current assets less
inventories and other current
assets) over current liabilities
1.26:1.00
1.13:1.00
0.88:1.00
Solvency
ratio
Earnings after tax plus non-cash
expenses over total liabilities
0.06:1.00
0.21:1.00
0.17:1.00
Debt-toequity ratio
Asset-toequity ratio
Interest rate
coverage
ratio
Return on
equity
Return on
assets
Net profit
margin
Total liabilities over total equity
0.29:1.00
0.34:1.00
0.35:1.00
Total assets over total equity
1.29:1.00
1.34:1.00
1.35:1.00
24.22 times
13.69 times
7.62 times
Net income over total equity
1%
3%
2%
Net income over total assets
1%
3%
1%
Net income over total revenue
21%
14%
5%
Income before interest and tax over
interest payments
CENTRO ESCOLAR UNIVERSITY
INDEX TO THE FINANCIAL STATEMENTS AND SUPPLEMENTARY
SCHEDULES
Annex I:
The map showing the relationships between and among the University and its
subsidiaries
Annex II:
Supplementary schedules to consolidated financial statements
CENTRO ESCOLAR UNIVERSITY AND SUBSIDIARIES
THE MAP SHOWING THE RELATIONSHIPS BETWEEN AND AMONG THE UNIVERSITY AND ITS SUBSIDIARIES
MARCH 31, 2021
CENTRO ESCOLAR UNIVERSITY
(Parent Company)
CEU Hospital, Inc.
(Subsidiary)
100.00%
ownership
Centro Escolas Las Piñas, Inc.
(formerly Las Piñas College)
(Subsidiary)
99.90%
ownership
Centro Escolar Integrated School,
Inc.
(Subsidiary)
94.00%
ownership
Centro Escolar University
Schedule A - Financial Assets
May 31, 2021
Name of Issuing entity and association of each issue
Investments at FVOCI
Casino Español de Manila
PLDT- Common
Polymedic General Hospital
PLDT- Preferred
PLDT Comm & Energy Ventures, Inc.
(formerly Pilipino Telephone Corp.)
Total
Number of shares or
principal amount of bonds
and notes
Amount shown in the
statement of financial
position
Valued based on
market quotation at
end of reporting
period
Loss incurred
(Income
received)
P1
=
72
80
9,500
=–
P
94,680
–
–
=–
P
94,860
–
–
=–
P
6,768
–
–
300
=9,953
P
–
=94,680
P
–
=94,860
P
–
=6,768
P
Centro Escolar University
Schedule B - Amounts Receivable from Directors, Officers, Employees and Principal Stockholders (Other than Affiliates)*
May 31, 2021
Deductions
Name and Designation of debtor
Housing Loan
Rosales, Ricky - Middle Manager
Travel Loan
Quita, Jennifer - Faculty
Cruz, Bessie - Faculty
Fajardo, Erlinda - Faculty
Nuguid, Virginia - Faculty
Guerrero, Edna - Faculty
Lumarque, Lilian - Faculty
Co, Welyn - Faculty
Separo, Perla - Faculty
Suto, Vivian - Faculty
Villamor, Janelle - Faculty
So, Rosemarie - Faculty
Albano, Heidi Rosario - Faculty
De Leon, Julius - Faculty
Galang, Sharon - Faculty
Duad, Nadine - Faculty
Ramirez, Eufrecina - Faculty
Raqueño, Avelina - Faculty
Anacio, Marcial - Faculty
Villanueva, Jean Marie - Faculty
Villanueva, Angelina - Faculty
Dee, Annabelle - Faculty
Mijarez, Luzette - Faculty
Clemente, Maria Luisa - Faculty
(Forward)
Balance at
beginning of
period
=
P260,576
56,437
61,568
56,437
35,915
35,915
38,480
35,915
35,915
92,352
51,307
89,787
22,222
6,784
6,784
6,784
67,858
6,784
33,928
9,046
9,046
56,437
9,046
6,784
Additions
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Amounts
collected
=
P15,770
5,131
10,261
10,261
10,261
10,261
10,261
10,261
10,261
10,261
10,261
10,261
–
–
–
–
–
–
–
6,786
6,786
54,177
6,786
–
Ending Balance
Amounts
written off
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Current
Not current
Balance at
end of
period
=
P244,806
=
P–
=
P244,806
51,306
51,307
46,176
25,654
25,654
28,219
25,654
25,654
82,091
41,046
79,526
22,222
6,784
6,784
6,784
67,858
6,784
33,928
2,260
2,260
2,260
2,260
6,784
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
51,306
51,307
46,176
25,654
25,654
28,219
25,654
25,654
82,091
41,046
79,526
22,222
6,784
6,784
6,784
67,858
6,784
33,928
2,260
2,260
2,260
2,260
6,784
Deductions
Name and Designation of debtor
Recto, Perpetua Socorro - Faculty
Cortado, Christopher Jay - Faculty
Andoy, Maria Corazon - Faculty
Dizon, Maria Carmen - Faculty
Fabian, Bella Marie - AVP Admin
Orlina, Jericho AVP - Business Affairs
Olaer, Carlito - VP Student Affairs
Huan, Edwin - Faculty
Grino, Nicanor Jerry Head - Security Dept.
Roldan, Rita - Faculty
Garcia, Nancy - Faculty
Martinez, Claire - Faculty
Flores, Jocelyn Sofia - Faculty
Fule, Jocelyn Andrea - Faculty
Martinez, Maria Wanda - Faculty
CE-IS Stockholders
Ma. Cristina D. Padolina - President
Corazon M. Tiongco
Balance at
beginning of
period
Amounts
collected
Additions
Amounts
written off
=
P6,784
41,985
29,404
29,404
29,404
29,404
29,404
140,553
52,892
5,298
12,206
12,206
74,666
33,980
54,323
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
=
P–
–
9,048
9,048
9,048
9,048
9,048
–
16,275
–
–
–
–
–
16,275
250,000
250,000
–
–
–
–
=
P2,174,020
=
P–
=
P275,836
Note: *This schedule pertains to advances originally made amounting to =
P100,000 and above only.
Ending Balance
Current
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Not current
Balance at
end of
period
6,784
41,985
20,356
20,356
20,356
20,356
20,356
140,553
36,617
5,298
12,206
12,206
74,666
33,980
38,048
=
P–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,784
41,985
20,356
20,356
20,356
20,356
20,356
140,553
36,617
5,298
12,206
12,206
74,666
33,980
38,048
–
–
250,000
250,000
–
–
250,000
250,000
=
P–
=
P1,898,184
=
P–
=
P1,898,184
Centro Escolar University
Schedule C - Amounts Receivable from Related Parties which are eliminated during the Consolidation of financial assets
May 31, 2021
Name of Related Companies
Centro Escolar Las Piñas, Inc.
Centro Escolar Integrated School, Inc.
Centro Escolar University Hospital, Inc.
TOTAL
Balance at beginning
of period
Additions
Deductions
Amounts written
Amounts collected
off
Ending balance
Current
Not current
P11,791,999
=
131,623,443
20,600,324
=259,733
P
6,352,798
29,168
=–
P
–
–
=–
P
–
–
P12,051,732
=
137,976,241
20,629,492
=–
P
–
–
=164,015,766
P
=6,641,699
P
=–
P
=–
P
=170,657,465
P
=–
P
Centro Escolar University
Schedule D - Intangible Assets - Other Assets
May 31, 2021
Description
Goodwill
Software
TOTAL
Beginning balance
=47,605,695
P
2,102,045
=49,707,740
P
Charged to cost and
expenses
=–
P
=–
P
–
179,128
P–
=
=179,128
P
Additions at cost
Charged to other
Other changes
accounts
Additions (deductions)
=–
P
=–
P
=
P–
=–
P
Ending balance
=
P47,605,695
1,922,917
=
P49,528,612
Centro Escolar University
Schedule E - Long-term Debt
May 31, 2021
Title of Issue and Type of Obligation
Lease liability
Amount Authorized by Indenture
Not applicable
Amount shown under caption “Current
portion of Long-term debt”in related
consolidated statement of financial
position
=14,276,673
P
Amount shown under caption
“Long-term Debt”in related
consolidated statement of
financial position
=162,564,562
P
Centro Escolar University
Schedule F - Indebtedness to Related Parties (Long-Term Loans from Related Companies)
May 31, 2021
Name of Related Companies
Balance at beginning
of period
The University does not have long-term loans from related parties.
Additions
Deductions
Amounts written
Amounts paid
off
Ending balance
Current
Not current
Centro Escolar University
Schedule G - Guarantees of Securities of Other Issuers
May 31, 2021
Name of issuing entity of
securities guaranteed by the
company for which this
statement is filed
Title of issue of each class of
securities guaranteed
Total amount guaranteed and
outstanding
As at May 31, 2021, the University has no guaranteed securities by other issuers.
Amount owned by persons
for which statement is filed
Nature of guarantee
Centro Escolar University
Schedule H - Capital Stock
May 31, 2021
Title of issue
Centro Escolar University
Number of shares held by
Number of shares
issued and
Number of shares
outstanding as
Directors,
Number of shares
reserved for options,
shown under the
Related parties officers and
Others
authorized
warrants, conversion
related statement of
employees
and other rights
financial position
caption
800,000,000
372,414,400
−
212,270,987
60,576,437
99,566,976
CENTRO ESCOLAR UNIVERSITY
SUPPLEMENTARY SCHEDULE OF RETAINED EARNINGS AVAILABLE
FOR DIVIDEND DECLARATION
MAY 31, 2021
Unappropriated parent company retained earnings, beginning of period
Add: Net income actually earned/realized during the period
Unappropriated parent company retained earnings, as adjusted to available for
dividend declaration, end of period
=449,855,272
P
40,754,971
=490,610,243
P
Note: In accordance with SEC Financial Reporting Bulletin No. 14, the reconciliation is based on the separate/parent
company financial statements of Centro Escolar University.
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