BOAZ Motor Corporation

COMPANY BACKGROUND AND FINANCIAL HIGHLIGHTS

Diamond Motor Group of Companies obtained a franchise right to market and sell Hyundai lines. This gave rise to the formation of its affiliate, Boaz Motor Corporation. They opened a shop along Marcos Highway bordering Pasig and Cainta. It was established and incorporated in August 28, 2006. During its early years, Boaz experienced net losses as a starting company and lack of sales manpower. This year marks the company’s largest income due to expanded customer base and significant increase in sales in its top-selling vehicles and among these are Grand Starex, Santa Fe and Tucson.

OPERATIONS

Basically, Boaz is engaged in selling cars, parts and providing vehicle services such as car repairs, diagnosis and maintenance. Hyundai Motor Company (HMC) in South Korea made Hyundai Asia Resources, Inc. or HARI, the official distributor of Hyundai vehicles in the country. HARI has thirty-two dealerships in the country and Boaz is one of them. The general setup between Boaz and HARI works like this. Boaz purchases vehicles from HARI through financing of major banks. HARI also gives its distributors subsidy for its monthly purchases so that Boaz can acquire and deliver more vehicles in the Philippines. Subsidies vary based on the model of the vehicles purchased. The acquisition of parts, however, is exclusively under cash basis. Apart from Hyundai Asia Resources, its other major suppliers are Pilipinas Shell, Karmelcon and Autodresscode. Its customers are primarily fleet accounts, and the major ones are R&E Transport, Incorporated, Smart Communications, JME Transport, Incorporated and Japan-PNB Leasing Finance.

BUSINESS MODEL

Boaz is divided into seven different departments. The table below shows the departments and its respective functions.

|Accounting |Provides, financial information, report and analysis |
|Sales |Income-Generating Department (Vehicle Sales) |
|Parts & Service |Income-Generating Department (Parts and Service Sales) |
|Customer Relations |Caters to customer service-related issues |
|Human Resources |Deals with employee-related matters |
|Finance& Insurance |Processes various vehicle invoices. LTO Registration and Insurance of Vehicles. They are also in charged of payment |
| |collection (vehicle sales, parts and service |
|Cashier |Processing receipts and cash custody |

OWNERSHIP/ORGANIZATIONAL STRUCTURE

Currently, Boaz has a total of forty-three (43) regular and probationary employees, thirty-eight (38) allowance-based consultants, four (4) parts and services OJT’s and one (1) carwash boy. Below are the company’s top officers and their positions. All of them have been with the company for four years.

|Ma. Dulce Blaylock – Chairman |
|Richard Blaylock – Director |
|Ma. Purisima Sison – Director |
|Joy Fernandez – Treasurer |
|Maurice Dizon – Director |
|Cresencio Vincent Fernandez Jr – President |
|Pauline Sevilla – Corporate |
|Secretary |

ACCOUNTING SYSTEMS

Boaz uses Data Management Information System (DMIS) as their AIS. The Accounting, Cashier, Parts and Service and Finance and Insurance Department use this integrated system. The other two, Sales and Human Resources Department, are not using any computerized system. Through this, the financial statements are processed and prepared monthly.

PEOPLE AND PROCEDURES

DMIS has variety of modules, which cater to the needs of each user. For instance, in Accounting Department, they have Accounting Management Information System (AMIS), the Cashier uses Cash Management Information System (CMIS) and they are both integrated within the DMIS System. In AMIS, the Accounting people use the generated reports to facilitate reconciliations of various transactions and to finalize financial statements and other reports as needed by the management. In the process of collecting, managing and storing financial data, further validation occurs before the final posting. The data are inputted to the system through importation. For an instance, Sales Journal and Cash Receipts Journal are being imported from Sales Management System and Cash Management System to Accounting Management System. Again, the entries are to be reviewed first before posting. Whenever vital updates and upgrades are being introduced in these systems, Boaz occasionally seeks the help of the IT people from Netspeed, the firm that created this packaged software.

INTERNAL CONTROLS AND SECURITY MEASURES

To safeguard the data stored in the system, password maintenance is secured as to the access of module and periodic closure of books. The Finance Manager has all the access to the AIS while his subordinates have limited access only, likewise, through the use of passwords. With respect to the assurance that its system produces accurate and reliable results, vouching is its main effective measure.

GROUP 7

Dela Cruz, Brad
Leano, Klau
Martinet, PJ
Paduano, Stephen
Santiago, Rachel
Supe, Dennis