FAR EASTERN UNIVERSITY P.O. BOX 609 MANILA, PHILIPPINES 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 March 31, 2011 2. SEC Identification Number 538 3. BIR Tax Identification No. 000-225-442 4. Exact name of registrant as specified in its charter Far Eastern University, Inc. 5. PHILIPPINES Province, Country or other jurisdiction of incorporation or organization 6. ____________ / / (SEC use only) /____________ / Industry Classification Code: 7. Nicanor Reyes Street, Sampaloc, Manila 1008 Address of principal office Postal Code 8. (632) 735-56-21 Issuer's telephone number including area code 9. NOT APPLICABLE Former name, former address, and former fiscal year, if changed since last report. 10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA Number of Shares of Common Stock Outstanding and Amount Title of Each Class of Debt Outstanding Common Stock, P100.00 par value 9,808,448 Bond with Non-Detachable Warrant, Not Applicable P/ 1.00 per unit - 2 - 11. All securities (common shares) are listed with the Philippine Stock Exchange, Inc. 12. Check whether the registrant: (a) has filed reports required to be filed by Section I7 of the SRC and SRC Rule 17 thereunder and Sections 26 and 141 of the Corporation Code of the Philippines during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); Yes [ x ] No [ ] 13. The aggregate market value of the voting stock held by non-affiliates: None - 3 - TABLE OF CONTENTS PART I - BUSINESS AND GENERAL INFORMATION NO. OF PAGES Item 1 - Business 6 Item 2 - Properties 3 Item 3 - Legal Proceedings 1 Item 4 - Submission of Matters To A Vote of Security Holders 1 PART II - OPERATIONAL AND FINANCIAL INFORMATION Item 5 - Market for Issuer’s Common Equity and Related Stockholders Matters 3 Item 6 - Management’s Discussion and 10 Analysis or Plan Operation Item 7 - Financial Statements 141 Item 8 - Changes in and Disagreements 1 With Accountants on Accounting and Financial Disclosure PART III - CONTROL AND COMPENSATION INFORMATION Item 9 - Directors and Executive Officers of the Issuer 7 Item 10- Executive Compensation 2 Item 11- Security Ownership of Certain Beneficial Owners and Management 2 Item 12- Certain Relationship and Related Transactions 1 PART IV CORPORATE GOVERNANCE Item 13- Corporate Governance 1 PART V EXHIBITS AND SCHEDULES Item 14- Exhibits and Reports on SEC Form 17-C a. Exhibits 1 b. Reports on SEC FORM I7 - C 3 c. Quarterly Reports 1 - 4 - PART I - BUSINESS AND GENERAL INFORMATION Item 1. Business Far Eastern University, Inc. (“FEU or the “Corporation) was incorporated in 1933. Brief Discussion of Business Far Eastern University, Inc. founded in 1928, is a private non-sectarian institution of learning. Guided by the core values of Fortitude, Excellence and Uprightness, FEU aims to be a university of choice in Asia. Committed to the highest intellectual, moral and cultural standards, FEU strives to produce principled and competent graduates. It nurtures a service-oriented and environment- conscious community which seeks to contribute to the advancement of the global society. Tuition and other fees which are the main sources of its financial stability are moderate, subject to government regulation. The University also provides full and partial scholarships to deserving students. An FEU Foundation supplements the University scholarship program by providing special grants. The University maintains excellent facilities such as an electronic library, various types of laboratories, auditorium, audio-visual and multimedia rooms, clinic, technology-based gate security and enrollment system, gymnasiums, and spacious air-conditioned classrooms to best serve the students. The University was granted deregulated status for five years beginning October 22, 2001 until October 21, 2006 per CHED Memorandum Order (CMO) No. 38, Series 2001. Then, per CMO No. 52, Series 2006, the deregulated status was extended until the end of Second Semester, SY 2006-2007. Moreover, per CMO No. 59, Series 2007, the University was granted the same status from November 15, 2007 to November 14, 2008. On January 22, 2009, through a Memorandum from the CHED Chairman, FEU’s status was extended until April 30, 2009. Recently, a CHED letter addressed to President Lydia B. Echauz dated March 17, 2009 has extended the University’s deregulated status for another five years, that is, from March 11, 2009 until March 30, 2014. Product: The Corporation is an educational institution. A private, non-sectarian institution of learning comprising the following different Institutes that offer specific programs: A.) Institute of Arts and Sciences (IAS) Programs: Masteral: Master of Arts (MA) major in: • Mass Communication • Letters • Psychology - 5 - Baccalaureate: Bachelor of Arts in: • Mass Communication • English Language • Literature • Political Science • International Studies Bachelor of Science (BS) in Medical Technology (awaiting recognition permit) Bachelor of Science (BS) in: • Biology • Psychology • Applied Mathematics with Information Technology B.) Institute of Accounts, Business and Finance (IABF) Programs: Masteral: Master of Business Administration (MBA) (Without Thesis Program) Baccalaureate: Bachelor of Science (BS) in Accountancy Bachelor of Science in Business Administration major in: • Business Economics • Financial Management • Marketing Management • Human Resource Development Management • Operations Management • Business Management • Internal Auditing • Legal Management C.) Institute of Tourism and Hotel Management (ITHM) Baccalaureate: Bachelor of Science (BS) in: • Hotel and Restaurant Management • Tourism Management - 6 - D.) Institute of Education (IE) Programs: Doctoral: Doctor of Education (Ed.D.) major in Educational Administration Masteral: Master of Arts in Education major in: • Educational Administration (Thesis Program) • Curriculum and Instruction (Thesis Program) • Curriculum and Instruction (Without Thesis Program) • Special Education (Thesis Program) Baccalaureate: Bachelor of Elementary Education (B.E.Ed.) major in: • General Education • Special Education Bachelor of Secondary Education (B.S.Ed.) major in: • Mathematics • Sports & Recreational Management • English • General Science • Music, Arts and Physical Education Certificate: Teacher Certificate Program E.) Institute of Architecture and Fine Arts (IARFA) Programs: Baccalaureate: Bachelor of Science in Architecture (B.S. Arch.) Bachelor of Fine Arts (BFA) major in: • Advertising Arts • Painting - 7 - F.) Institute of Law (IL) Programs: Post-Baccalaureate: Bachelor of Law (LI.B.) Juris Doctor (JD) G.) Institute of Nursing Programs: Masteral: Master of Arts in Nursing Baccalaureate: Bachelor of Science in Nursing (BSN) H.) FEU-Makati Programs: Masteral: Masters in Business Administration (MBA) Baccalaureate: Bachelor of Science (BS) in • Accountancy • Accounting Technology • Information Technology Bachelor of Science in Business Administration major in: • Business Economics • Financial Management • Marketing Management • Human Resource Development Management • Operations Management • Management • Legal Management - 8 - All programs offered in the University were granted approval/permits by CHED and other concerned government institutions. Accreditation on Programs The Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA) granted Certificates of Level III Second Reaccredited Status, from April 2011 to April 2016 to: Bachelor of Arts in Mass Communication Bachelor of Science in Business Administration major in: Business Economics Financial Management Marketing Management Human Resource Development Management Operations Management Business Management Internal Auditing Legal Management Similarly, effective April 2011, PACUCOA granted a Level III Reaccredited Status to: Bachelor of Science in Accountancy Bachelor of Science in Biology Bachelor of Science in Applied Mathematics with Information Technology Bachelor of Science in Psychology Bachelor of Science in Secondary Education Bachelor of Science in Elementary Education Meanwhile, the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU) visited the University on September 16-17, 2010 and granted a Level II Reaccredited Status to its Nursing program for another 5 years. It is the policy of Far Eastern University to provide quality educational services. This commitment is embodied in, and fully supported by, the University’s Quality Management System (QMS) which has been certified to the latest version, ISO 9001-2008, through Certificate Registration No. TUV 100 05 0416 valid until January 17, 2012. Thus, the students and other stakeholders are assured that services provided by FEU are in accordance with standard procedures in its QMS which undergo continuous improvement for the satisfaction of the University’s customers. - 9 - Distribution methods of the products/services: Since this is an educational institution, its services are certainly focused on the students. The tuition fees of students in the following Institutes significantly contributed to the revenues of the University: Institute Percentage to Revenues Institute of Accounts, Business 39.20% and Finance Institute of Arts and Sciences 18.67% Institute of Nursing 30.39% Customers: Students Purchases of Raw Materials: NOT APPLICABLE Distribution