Annual Report 2009 - LWUA

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Net Book Value At December 31 1,664,620 84,925,316 45,215,335 8,531,453 5,578,971 145,915,69510. OTHER NON-CURRENT ASSETSThis account consists of:2009 2008Deferred tax assets 223,863,413 141,443,023Deferred engineering study cost 10,243,816 6,140,302Restricted funds 956,313 8,863,407Deferred well drilling cost 4,027,712 531,662Other deferred charges 14,301,518 14,305,737253,392,772 171,284,131Deferred tax assets pertains to prepaid tax arising from certain expenses not currently deductible for income tax purposes pursuant to PAS 12,details of which are as follows:2009 2008Balance of Deferred Tax Asset 485,544,555 403,124,165Balance of Deferred Tax Liability 261,681,142 261,681,142Deferred Tax Assets. net 223,863,413 141,443,023Paragraph 72 of PAS 12 states : “Although current tax assets and liabilities are separately recognized and measured, they are offset in thebalance sheet subject to criteria similar to those established for financial instruments in IAS 32 Financial Instruments : Disclosure andPresentation.”Paragraph 74 of PAS 12 also states, “An entity shall offset deferred tax assets and deferred tax liabilities, if, and only if:(a) the entity has a legally enforceable right to set off current tax assets against current tax liabilities, and(b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:(c) (1) the same taxable entity; or(d) Different taxable entities which intend either to settle current tax liabilities simultaneously, in each future period in which significant amountsof deferred tax liabilities or assets are expected to be settled or recovered.”Deferred engineering study cost refers to the expenses incurred in connection with the preparation of project feasibility studies and detailedengineering designs of unbilled on-going projects. The costs of billed projects are eventually transferred to the engineering study expenseaccount.Deferred well drilling cost includes the cost of manpower, travel, materials, rent, gas and oil, repairs and maintenance, and other expensesincurred in connection with in- house well drilling projects. Cost relative to this service is eventually transferred to the well drilling expenseaccount when billed or discontinued.Other deferred charges account is used to record deferred charges other than costs of engineering studies; construction supervision; and welldrillings that are held for future billing to various water supply projects.11. ACCOUNTS PAYABLEThis account consists of:2009 2008Notes and acceptances payable 500,000,000 -Interest payable 81,797,068 52,658,858Accounts payable 50,051,556 43,010,178Payable to officers and employees 5,421,619 5,204,186637,270,243 100,873,222Notes and acceptances payable pertains to the amount of loan with the Philippine Veterans Bank in the amount of P500,000,000, exclusively forthe financing of LWUA’s liquidity requirement for debt servicing of LWUA’s existing and maturing loans. This loan carries an interest rate of6.8421% per annum for a 90 days term which will fall due on February 24, 2010. In this regard, LWUA executed Promissory Note No. 104013703367last November 23, 2009 and it was secured by the assignment of LWUA’s Trade / Business receivables.12. PAYABLE TO GOVERNMENT AGENCIESThis account consists of amounts:2009 2008Due to Government Owned and Controlled Corporations (GOCCs) 81,778,935 573,938,742Due to Bureau of Internal Revenue (BIR) 3,500,839 13,558,30985,279,774 587,497,05136 Local Water Utilities Administration
Annual Report 2009Due to GOCCs pertains to collections of loans from Water Districts thru bank credits.Due to BIR pertains to the amount of income tax and tax withheld from contractors/suppliers and employees for remittance to the Bureau ofInternal Revenue (BIR).13. OTHER CURRENT LIABILITIESThis account consists of:2009 (as restated )2008Loans payable, current – foreign 302,608,052 286,484,317Loans Payable , current -GOP 135,283,775 143,551,069Loans payable, current – domestic 91,653,333 191,653,333Guaranty deposits payable 55,795,215 55,711,410Other payables 1,444,263,779 465,460,7462,029,604,154 1,142,860,875Loans payable, current- foreign represents the currently maturing portion of loans received through loan agreements executed by and betweenthe LWUA as the borrower and the foreign lending banks as the lenders mainly to finance, on a long-term basis, the development of various watersystems in different cities, municipalities and rural areas of the country.Loans Payable – current- Government of the Philippines is the current portion of loans executed by and between the Republic of the Philippines(RP)as the borrower and the foreign lending banks as the lender. Subsidiary loan agreements were likewise executed by and between the LWUA, asthe implementing agency and sub-borrower, and the RP as the sub- lender to LWUA.Guaranty deposits payable refers to the amount collected or withheld from contractor as 10% retention on contract payments to guaranteeperformance of the project and are refundable to the contractor.Other payables refers to the amount of advances made by the Bureau of Treasury for LWUA’s debt service obligation and to the amount of fundsreceived from sources other than the sale of capital stock for special or designated purpose. The very significant increase in the balance of thisaccount was attributed mainly to the net increase of P985,716,861 in Liability for Special Funds as a result of various cash subsidies receivedfrom the National Government, and by net decreases in Other Payable accounts such as Depository Liabilities –WDDP, Advances from PlaneFares, etc., to come up with a net increase in Other payables by P978,823,034.14. LOANS PAYABLE – GOVERNMENT OF THE PHILIPPINES (relent loans )This account consists of:2009 2008USAID 033 – US$15MAt 2% per annum from 1975 to 1985,3%, thereafter, payable in 30 annualinstallments of $286,330.88 startingJuly 17, 1985 and increasingthereafter, up to July 17, 2015. 231,353,597 258,560,653USAID 042 – US$ 20MAt 2% per annum from 1977 to 1987,3% thereafter payable in 30 annualinstallments of $305,410.85 startingApril 13, 1987 and increasing thereafter,up to April 13, 2017 302,306,638 330,120,843ADB 1056-PHI – US$14.06MAt 10% per annum payable in 25annual installments of US$247,600starting February 15, 2001, increasingthereafter up to August 15, 2025. 631,847,841 651,644,927ADB 1057-PHI – US$2.7MAt 10% per annum payable in 20 annualinstallments of $101,800 startingFebruary 15, 1995 increasing thereafterup to August 15, 2014. 74,832,117 84,157,015ADB 1599 - $292 TAt rate applicable to Republic loanplus the rate of 1% payable in 25 annual37
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Page 3 and 4: Annual Report 2009VisionThe Leader
Page 5 and 6: Annual Report 2009systems, manageme
Page 7 and 8: Annual Report 2009performed the tas
Page 9 and 10: Annual Report 2009recommended for a
Page 11 and 12: Annual Report 2009NEWLY FORMED WATE
Page 13 and 14: Annual Report 2009LWRED Summary of
Page 15 and 16: Annual Report 2009and Evaluation Di
Page 17 and 18: Annual Report 2009COMPLETED WATER P
Page 19 and 20: Annual Report 2009Ethical Leadershi
Page 21 and 22: Annual Report 2009OFFICE OF THEDEPU
Page 23 and 24: Annual Report 2009MINDANAOAREA 7LOA
Page 25 and 26: Annual Report 2009AUDIT CERTIFICATE
Page 27 and 28: Annual Report 2009LOCAL WATER UTILI
Page 29 and 30: Annual Report 2009LOCAL WATER UTILI
Page 31 and 32: Annual Report 20091. Loans payable,
Page 33 and 34: Annual Report 2009Receivables from
Page 35: year and paid to the bondholder unt
Page 39 and 40: Annual Report 2009of Y149,600,000 o
Page 41 and 42: Annual Report 200918. CAPITAL STOCK
Page 43 and 44: Annual Report 2009The computed curr

Annual Report 2009 - LWUA

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