Company Questionnaire

I.

Background of the Business

Name of the Business: LEPANTO CONSOLIDATED MINING COMPANY Address of the Business: LEPANTO BLDG., 8747 PASEO DE ROXAS, 1226 MAKATI CITY Date Established: SEPTEMBER 8, 1986 II. Organizational Structure 1. Name of owner/manager: FELIPE U. YAP CHAIRMAN OF THE BOARD & CHIEF EXECUTIVE OFFICER 2. Form of ownership: Sole Proprietorship Partnership 3. How many employees do you have? 1,401 No. of males/females X Corporation Others

III.

Financial Structure

1. What is the financial status for the years 2007 2009 in terms of: 1.1 Income Statement = company incurred losses during those years due to shortfall in production. 1.2 Cash Flow = cash flow of the company struggled 1.3 Balance Sheet = companys liquidity is unattractive 2. What are the financial management practices of the company for three years 2009 2011: a ) Cash Management see notes of annual report b ) Receivable Management see notes of annual report c ) Inventory Management see notes of annual report d ) Other current assets see notes of annual report

3. What is the growth and development of the business for the years 2009 to 2011 as to: 3.1 Sales it follows with production. 3.2 Production not much growth. see Financial Statements 4. What are the problems encountered related to financial management? = It is always challenging to manage cash flow during trying times.

FINANCIAL MANAGEMENT 1. How did you plan the budgets and financial matters of Lepanto Mines? Budgeting is done annually and updated within the year if deemed necessary. 2. What is your role when it comes to planning the financial matters of Lepanto Mines? Produce monthly reports (financial statements) reflective of the actual transactions for comparison with budget. Design and implement controls related to financial statement preparation. 3. What is your basis in forecasting the companys capital requirements? Based on the companys Mining Program for the period e.g., annual Mining Program. 4. How do you forecast sales and production? Production forecast is contained in the Mining Program. Product has ready buyer thus sales forecasting is not necessary. 5. What are the steps you follow in forecasting financial cost and profit? Prepare annual Mining Program then prepare the annual Budget (revenue, & costs & expenses). 6. How did you manage the daily budget, and cash flow of your company? Our Treasury Department handles that function 7. Where did you procure or get additional funds for the company? financing 8. Have you implemented rules and policies regarding salaries and benefits of employees? If yes, what are those? Salary increases in accordance with Collective Bargaining Agreement and DOLE mandate, and yearly evaluation adjustment. 9. What are the policies that you implemented when it comes to productions? Grade control loans, & Equity