CARD MRI PROPERTY MANAGEMENT, INC.

(Formerly: CARD MRI Property Holdings, lnc.)

Financial Statements

December 31, 2019

(With Comparative Figures for December 31, 2018)

And

lndependent Auditor's Report

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ENDRIGA, MANANGU & ASSOGIATES

Certified Public Accountants
 CARD MRI PROPERTY MANAGEMENT, INC.
(Formerly: CARD MRI Property Holdings, lnc.)
STATEMENT OF FINANCIAL POSITION
(With Comparative Figures for December 31, 2018)

As of December 31
2018
Nofes 2019 (As restated)

ASSETS

CURRENT ASSETS
Cash and other cash items 2,3,4 P 5,',190,452 P 57,403,948
Loan and other receivables 2,3, 5 4,299,046 2,954,638
Other current assets 2, 6 37,383,847 5,685,370
Total Current Assets 46,862,346 66,043,955

NONGURRENT ASSETS
lnvestment properties - net 2,3,7 339,336,064 195,015,770
Property and equipment - net 2,3, I 4,776,297
Other noncurrent asset 2,9 5,701,180 5,752,181
Total Noncurrent Assets 349,813,541 200,767,951

TOTAL ASSETS P 396,675,887 F 266,911,906

LIABILITIES AND EQUlTY

CURRENT LIABILITIES
Current liabilities 2,10 P 8,906,790 F 14,911,297
Loans payable - current portion 2, 11 33,974,597 19,201,119
Income tax payable 2, 16
Total Current Liabilities 42,881,396 34,112,406

NONCURRENT LIABILITIES
Loans payable - net of current portion 2, 11 48,009,247 34,713,805
Retirement benefit obligation 2,3,18 3,039,226 573,975
Other liabilities 2, 12 2,995,671 1,172,955
Total Noncurrent Liabilities 54,044,'.143 36,460,735
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EQUITY
Capitalstock 2, 13 301,238,003 '195,000,500
Retirement plan actuarial loss - net 2, 18 (2,996,905) (549,068)
Retained earnings 2,21 1,509,160 1,797,333
Total Equity 299,750,359 196,238,765

TOTAL LIABILITIES AND EQUITY P 396,675,997 F 266,91 1,906

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 CARD MRI PROPERTY MANAGEMENT, INC.
(Formerly: CARD MRI Property Holdings, lnc.)
STATEMENT OF COMPREHENSIVE INCOME
(With Comparative Figures for December 31, 2018)

For the Years Ended December 31

2018
Nofes 2019 (As restated)

REVENUES 14 P 31,291,400 F 10,450,239

COST OF SERVICES 15 16,278,670 347,000

GROSS INCOME 15,002,730 10,103,238

OPERATING EXPENSES 15 13,295,842 7,820,382

INCOME BEFORE INCOME TAX 1,706,999 2,282,856

PROVISION FOR INCOME TAX 16 747,558 648,464

NET INCOME AFTER INCOME TAX 959,330 1,634,392

oTHER COMPREHENSIVE TNCOME (LOSS)

Items that will not be reclassified to profit or loss
Retirement plan actuarial loss - net 1B (2,447,7371 (54e,068)

TOTAL COMPREHENSIVE INCOME (LOSS) P n F 1,085,324

See accompanying Noles to Financial Sfafemenfs.

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 CARD MRI PROPERTY MANAGEMENT, INC.
CARD MRI H lnc.
STATEMENT OF CHANGES IN
(With Comparative Figures for December 31, 201g)

Retirement
Capital Stock Retained plan actuarial
1 loss - net Total
Balance at 1,2019, as restated ? 195,000,500 P
lssuance of stocks
1,797,333 P ? 196,239,764
1 05,000,000 105,000,000
Stock dividends 1,237,503 (1,237,503)
Tota! income for the
Balance at December 31 9 P 301 1 160 r P 299,750,3

Balance at January 1, 2018 P 125,000,500 P 152,941 ? P 125,153,441

lssuance of stocks 70,000,000 70,000,000
Total income for the 1 1
at restated F 1 F 1 787 P P1 765

See accompanying Notes lo Financial Statements.

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 CARD MRI PROPERry MANAGEMENT, INC.
CARD MRI Pro Holdin lnc.
STATE MENT OF CASH FLOWS
(With Comparative Figures for December 31, 201g)

For the Years Ended December 31

2018
Nofes 2019 (As restated)
GASH FLOWS FROM OPERATING ACTIVITIES
Net income before income tax P 1,706,999 P 2,292,956
Adjustments for:
Depreciation expense 7, 8, 15 6,546,959 2,713,993
lnterest income 4, 14 (314,406) (451,041)
lnterest expense 15 4,565,534 2,714,929
Retirement expense, net of contributions 18 17,514 24,907
Amortization of transaction costs on loans 11 157,890 47,996
Cash from operations before working capital changes
12,690,379 7,333,530
Changes in operating assets and liabilities
Decrease (increase) in:
Loan and other receivables 5 (1,333,409) (374,106)
Other assets 6 (31,209,497) (10,120,690)
lncrease (decrease) in:
Other liabilities 12 1,922,716 1,124,719
Current liabilities 10 (6,004,497) 355)
Net cash used in operations (24,043,2991 (2,624,992)
lnterest received
314,406 451,041
lnterest paid (4,565,534) (2,546,041)
lncome tax paid (1,237
Net cash used in operati ng activities (29,531, e77) 4,960,135)

CASH FLOWS FROM INVESTTNG ACTIVITIES

Acquisitions of investment properties 7 (149,509,359) (79,550,060)
Acquisitions of property and equipment I (6,134,190)
decrease in other noncurrent assets 9 51,001
Net cash used in activities 1 s92 550

CASH FLOWS FROM FINANCING ACTIVITIES

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Proceeds from:
lssuance of capital stock 13 105,000,000 70,000,000
Availment of loans payable 11 46,500,000 50,000,000
Settlement of loans payable 11 (19,240,2171 (9,016,462)
Transaction costs on loans payable 11 (348,7541 000)
Net cash provided by financing activities
132,911,029 1 10,608,538

NET TNCREASE (DECREASE) tN CASH

(52,213,496) 26,098,343

CASH AT BEGINNING OF PERIOD 4 57,403,949 31 605

CASH 4P 190 F57

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GARD MRI PROPERTY MANAGEMENT, INC.
(Formerly: CARD lvlRl Property Holdings, lnc.)
NOTES TO FINANCIAL STATEMENTS
As ofand Forthe Year Ended December 31, 2019
(With Comparative Figures for December 31, 20'18)

1. Corporate Information

CARD MRI Property Management, lnc. (formerly: CARD MRI Property Holdings, lnc.) (the Company)
was incorporated and duly registered with the Securities and Exchange Commission (SEC) on
November 10, 2016. The Company's primary purposes are to deal and engage in land or real estate
business in all its branches and ramifications, to hold, develop, manage, administer, sell, convey,
encumber, purchase, acquire. rent or othenruise deal in and dispose of, for itself or for others, for profit
and advantage, including hotels, inns or resorts, all adjuncts and accessories thereto, housing projects,
commercial and industrial, urban or other kinds of real property, improved or unimproved, with or to
such persons and entities and under such conditions as may be permitted by law and any and all other
businesses as may be necessary and desirable in connection therewith.

The Company is a member of Center for Agriculture and Rural Development (CARD) - Mutually
Reinforcing lnstitutions (MRl ).

The Company's principal office is located in 20 M. L. Quezon Street, City Subdivision, San Pablo City,
Laguna.

Chanqe of Coroorate Name

On March 8, 2019, the Company amended its Articles of lncorporation to change its company name
from CARD MRI Property Holdings, lnc. to CARD MRI Property Management, lnc.

2. Basis of Preparati on, Statement of Compliance, Significant Accounting Policies, and Changes in
Accounting Policies

The significant accounting policies that have been used in the preparation of these financial statements
are summarized below. These policies have been consistently applied to all the years presented, unless
otherwise stated.

2.1 Basis for Preparation

The financial statements of the Company have been prepared on a historical cost basis. The financial
statements are presented in Philippine peso, which is the Company's functional and presentation
currency. All amounts are rounded to the nearest peso unless otherwise stated.

2.2 Statement of Compliance

The financial statements of the Company have been prepared in compliance with Philippine Financial
Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs). The Company qualifies as
a sME under the criteria set by the Securities and Exchange commission (sEC).

The Company's total assets as of December 31, 2019 exceeded the threshold provided by SEC for the
PFRS for SMEs framework and will be reporting its financiat statements in compliance with full pFRS
framework starting January'1, 2020.

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 Page 2 of 21

2.3 Presentation of Financial Statements

Financial assets and flnancial liabilities are offset and the net amount reported in the statement of
financial position only when there is a legally enforceable right to offset the recognized amounts and
there is an intention to settle on a net basis or to realize the assets and settle the liability simultaneously.
The Company assesses that it has currently enforceable right of offset if the right is not contingent on a
future event, and is legally enforceable in the normal course of business, event of default, and event of
insolvency or bankruptcy of the Company and all of the counterparties.

2.4 Siqnificant Accountinq Policies

The principal accounting policies applied in the preparation of the financial statements are set out
below.

2.4.1 Financial lnstruments

i. lnitial Recognition and Subsequent Measurement

Date of Recognition - A financial asset or financial liability is recognized only when the company
becomes a party to the contractual provisions of the instrument. PFRS for SMEs is used for
recognition, measurement and disclosures of financial statements.

lnitial recognition and measurement of financial instrumentS

All financial instruments are initially recognized at transaction price (including transaction costs
except in the initial measurement of financial instruments at fair value profit or loss (FWPL). The
Company classifies its financial assets as financial assets at FWPL and debt instruments at
amortized cost while its financial liabilities are classified as financial liabilities measured at FVTPL,
and financial liabilities measured at amortized cost. Management determines the classification of its
financial instruments at initial recognition and, where allowed and appropriate, re-evaluates this
designation at every reporting date.

Financial assets at amortized cost

These are non-derivative financial assets (i.e., receivables) with fixed or determinable payments
and fixed maturities that are not quoted in an active market. They are not entered with the intention
of immediate or short-term resale and are not classified as equity instruments at cost less
impairment or financial assets at FWPL.

After initial measurement, receivables are subsequently measured at amortized cost using the
effective interest method, less allowance for credit losses. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees that are an integral part of the
effective interest rate.

ii, lmpairment of Financial Assets

The Company assesses at each reporting date whether there is objective evidence that a financial
asset or group of financial assets is impaired. An impairment exists if one or more events that has
occurred since the initial recognition of the asset (an incurred 'loss event'), has an impact on the
estimated future cash flows of the financial asset or the group of financial assets that can be reliably
estimated. Evidence of impairment may include indications that the borrower or a group of
borrowers is experiencing significant financial difficulty, default or delinquency in interest or principal
payments, the probability that they will enter bankruptcy or other financial reorganization and where
observable data indicate that there is measurable decrease in the estimated future cash flows, such
as changes in arrears or economic conditions that correlate with defaults.
 Page 3 of 21

Financial liabilities at amortized cost

This category represents issued financial instruments or their components, which are not
designated at FVTPL, where the substance of the contractual arrangements result in the Company
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 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, these financial liabilities are subsequently measured at cost less any
allowance for impairment losses.

iii. Derecognition of Financial Assets and Liabilities

Financialassefs
A financial asset (or, where applicable a part of a financial asset or part of a group of financial
assets) is derecognized when:
a. the contractual rights to receive cash flows from the financial asset expire; or
b. the Company retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay td a third party under a 'pass-through'
arrangement; or the Company has transferred its rights to receive cash flows from the asset and
either (1) has transferred substantially all the risks and rewards of the asset, or (2) has neither
transferred nor retained the risk and rewards of the asset but has transferred the control over the
asset.

Where the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, and has neither transferred nor retained substantially all the risks
and rewards of the asset nor transferred control over the asset, the asset is recognized to the extent
of the Company's continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of original carrying amount of the
asset and the maximum amount of consideration that the Company could be required to pay.

Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or
has expired. 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, and the difference in the respective carrying amounts, is recognized in the statement of
comprehensive income.

2.4.2 lnvestment Properties

lnvestment properties are stated at cost less accumulated depreciation and accumulated

The initial cost of investment properties consists of its purchase price, including non-refundable
taxes and any directly attributable costs of bringing the asset to its working condition and location
for its intended use. Expenditures incurred after items of lnvestment properties have been put into
operation, such as repairs and maintenance are normally charged against operations in the period
in which the costs are incurred, ln 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 investment properties beyond its originally assessed standard of
performance, the expenditures are capitalized as an additional cost of lnvestment properties.
 Page 4 ot 21

Depreciation is computed using the straight-line method over the estimated useful lives (EUL)
of the
respective assets. Leasehold improvements are amortized over lease term and
the shorter of the
terms of the covering leases and EUL of the improvements.

The range of the EULs of the lnvestment properties follows:

Building and improvements 15 years

Leasehold improvements 3 years

The depreciation method and the EULs are reviewed periodically to ensure that the period and the
method of depreciation are consistent with the expected paftern of economic benefits from items
of
lnvestment properties.

Fully depreciated assets are retained in the accounts until they are no longer in use
and no further
depreciation is credited against profit or loss.

An item of lnvestment properties is derecognized upon disposal or when no future economic

benefits are expected from its use or disposal. Any gain or loss arising from derecognition
of the
asset (calculated as the difference between the net disposal proceeds ind the carryiig
amount of
the asset) it is included in the statement of comprehensive idcome under'Miscellaneous
income, in
the period the asset is derecognized.

The carrying values of the lnvestment properties are reviewed for impairment
when events or
changes in circumstances indicate the carrying value may not be recoverable.
lf any such indication
exists and where the carrying values exceed the estimated recoverable amount,
an impairment loss
is recognized under 'Provision for credit and impairment losses' in the statement
of comprehensive
income.

2.4.3 Property and Equipment

Property and equipment are stated at cost less accumulated depreciation
and impairment losses.

The initial cost of property and equipment comprises its purchase price and any
directly attributable
costs of bringing the asset to its working condition and location for its intended ,.L.
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incurred after the property and equipment have been put into operation,
such as repairs and
maintenance and overhaul costs, are normally charged to operations in the period
when the costs
are incurred. ln situation where it can be cleady 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.

Depreciation is computed using the straight-line method over the following

estimated useful lives of
property and equipment' The estimated useful lives for property
and equipment is 3 years.

The useful life and depreciation method are reviewed periodically to ensure
that the period and
method of depreciation are consistent with the expected pattern of economic
benefits from items of
property and equipment.

When assets are sold and retired, their cost and accumulated depreciation
are derecognized from
the accounts, and any gain or loss resulting from their disposal is c'harged
or credited to 6perations.

2.4.4 Other Assets

Other assets represent miscellaneous assets, prepaid taxes, supplies
on hand, and input VAT.
Miscellaneous assets consist of earnest money used to purchase pioperties
and deposit fbr rented
assets' These are measured at the amount of cash paid. Subsequ"nily, earnest
money is included
as part of the cost of the asset upon recognition and cash deposits are returned
after deducting any
charges by the lessor.
 Page 5 of 21

2.4.5 Capital Stock

Capital stock represents ordinary shares which are classified as equity. Equity instruments are
measured at the fair value of the cash or other resources received or receivable, net of the direct
costs of issuing the equity instruments. lf payment is deferred and the time value of money is
material, the initial measurement is on a present value basis.

Any costs of acquiring Company's own shares, if any, are shown as a deduction from equity
attributable to the Company's equity holders until the shares are cancelled or reissued. When such
shares are subsequently sold or reissued, any consideration received, net of directly attributable
incremental transaction costs and the related income tax effects, is included in equity to
the Company's equity holders. "ttribrt"ble

2.4.6 Retained Earnings

Retained earnings represent the cumulative balance of periodic net income, prior period
adjustments and effect of changes in accounting policies, and other capital adjustments, net of any
dividend declaration. Dividends, except for stock dividends, are recognized as a liability and
deducted from equity when they are approved by the Company's Board of Directors andlor
stockholders. Dividends for the period that are approved after the end of this financial reporting
period are dealt with as an event after the flnancial reporting period. Retained earnings
may also
include the effect of changes in accounting policy as may b'e required by the accountinl standard's
transitional provisions.

2.4.7 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow
to the
Company and the revenue can be reliably measured regardless of when payment is being made.
Revenue is measured at fair value of the consideration reeeived or receivable, taking into account
contractually defined terms of payment and excluding taxes or duty. The Company -has assessed
that it is acting as a principal in all of its revenue transactions. The following recognition
criteria must also be met before income is recognized: "p"tif"
i. lnterest income
lnterest income from cash in banks and loans are recognized as interest accrues, taking into
account the effective yield of the asset.

ii. Rentalincome
Receipts from rental of Investment properties are recognized as Rental income.

iii. Commission income

Commission income consists of payments from construction facilitation, property management and
asset maintenance, and are recognized only upon collection or accrued when there is reasonable
degree of certainty as to their collectability.

2.4.8 Expense Recognition

Expense is recognized in the statement of coiiiprehensive income when it is probable that
a
decrease in future economic benefits related to a decrease in an asset or an increase in
liability has
occurred and the decrease in economic benefits can be measured reliably. Expenses are
recognized as incurred or when the related revenue is earned.

2.4.9 Leases
The determination of whether an arrangement is (or contains) a lease is based on the
substance of
the arrangement at the inception of the lease, and requires an assessment of whether
the fulfillment
of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset. A reassessment is made after inception of the lease
only if one of
the following applies:

(a) there is a change in contractual terms, other than a renewal

or extension of the arrangement;
(b) a renewal option is exercised or extension granted, unless that term
of the renewal or extension
was initially included in the lease term;
 Page 6 of 21

(c) there is a change in the determination of whether fulfillment is dependent on

a specified asset;
(d) there is a substantial change to the asset.

Where a reassessment is made, lease accounting shall commence or cease from the date when
the change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) above, and
at the date of renewal or extension period for scenario (b). The Company offers operaiing lease with
long term period and provide escalation clauses in terms of rental income.

2.4.10lncome Taxes
i. Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting date.

ii. Deferred Tax

Deferred income tax is provided, using the balance sheet liability method, on all temporary
differences at the reporting date between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets
are
recognized for all deductible temporary differences, carry fonruard benefit of unused tax
credits from
excess of minimum corporate income tax (MCIT) over the regular corporate income tax and
unused
net operating loss carryover (NoLCo), to the extent that it is probable that taxable income
will be
available against which the deductible temporary differences and carry fonryard benefits
of MCIT
and NOLCO could be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected
to apply to the
period when the asset is realized or the liability is settled, based on tax rates
and tax laws that have
been enacted or substantively enacted at the reporting date.

2.4. 1 1 Foreign currency-denominated rransactions and rranslation

Transactions in foreign currencies are translated at exchange rates at the transaction
dates.
Monetary assets and liabilities denominated in foreign curreniies are translated at the
rates of
exchange at the reporting date. Gains or losses arising from exchange rate changes are
dealt with
in profit or loss.

2.4. 1 2 Provision and Contingencies

Provisions are recognized when the Company has present legal or constructive obligations
as a
result of past event, it is probable that an outflow of resources emUoOying economic
be-nefits will be
required to settle the obligation and a reliable estimate can be made of thL amount
of the obligation.

Contingent liabilities are not recognized in the financial statements but are disclosed in
the notes to
financial statements unless the possibility of an outflow of resources embodlng
economic benefits
is remote. Contingent assets are not recognized'in the financial statements but are
disclosed in the
notes to financial statements when the inflow of economic benefits is probable.

2.4.1 3 Employee Benefits

i. Shortterm Benefits
The Company recognizes a liability net of amounts already paid and an expense for services
rendered by employees during the accounting period. Short-term benefits given
by the Company to
its employees include compensation, social security contributions, short+eim compensated
absences, bonuses and other non-monetary benefits.
 PageT ot 21

ii. Long-term Benefits

Defined benefit plan
The Company operates a defined benefit retirement plan and a hybrid retirement plan which require
contribution to be made to a separately administered fund. The net defined benefit liability or asset
is the aggregate of the present value of the defined benefit obligation at the end of the reporting
period reduced by the fair value of plan assets and adjusted for any effect of limiting a net defined
benefit asset to the asset ceiling (if any). 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.

The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.

Defined benefit costs comprise the following:

(a) Service Cost;
(b) Net interest on the net defined benefit liability or asset; and
(c) Remeasurements of net defined benefit liability or asset.

Service costs which include current service costs, past service costs and gains or losses on non-
routine settlements are recognized as expenses in the statement of comprehensive income. Past
service costs are recognized when plan amendment or curtailment occurs. These amounts are
calculated periodically by independent qualified actuaries.

Net interest on the net defined benefit liability or asset is the change during the period in the net
defined benefit liability or asset that arises from the passage of time which is determined by
applying the discount rate based on government bonds to the net defined benefit liability or asset.
Net interest on the net defined benefit liability or asset is recognized as expense or income in the
statement of comprehensive 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 defined benefit liability) are recognized
immediately in the statement of financial position with a corresponding debit or credit to 'Retirement
plan actuarial gain (loss) - net ' under the statement of comprehensive income in this period in
which they arise.

Plan assets are assets that are held by a long-term employee benefit fund. Plan assets are not
available to the creditors of the Company, nor can they be paid directly to the Company. 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 disposat date
of those assets (or, if they have no maturity, the expected period until the settlement of the related
obligations). lf the fair value of the plan assets is higher than the present value of the defined benefit
obligation, the measurement of the resulting defined benefit asset is limited to the present value of
economic benefits available in the form of refunds from the plan or reductions in future contributions
to the plan.

Employee leave entitlement

Employee entitlements to annual leave are recognized as a liability when they are accrued to the
employees. The undiscounted liability for leave expected to be settled wholly before 12 months after
the end of the annual reporting period is recognized for services rendered by employees up to the
end of the reporting period.
 Page 8 of 21

2.4.14 Related Parties

Related party relationships exist when one party has the ability to control, directly or indirectly
through one or more intermediaries, the other party or exercise significant influence over the other
party in making financial and operating decisions, This includes: (1) individual owning, directly or
indirectly through one or more intermediaries, control, or are controlled by, or under common control
with, the Company; (2) associates; and (3) individuals owning, directly or indirectly, an interest in the
voting power of the Company that gives them significant influence over the Company and close
members of the family of any such individual.

The key management personnel of the Company and post-emptoyment benefit plans for the benefit
of Company's employees are also considered to be related parties.

2.4.15 Events after the Reporting Period

Adjustments are made to reflect in the financial statements the effect, if any, of post year-end
events that provide additional information about the Company's financial position at the reporting
date (adjusting events). Post year-end events that are not adjusting events are disclosed in the
notes to the financial statements when the events provide information considered material to the
understanding of the financial statements.

3. Significant Accounting Estimates and Assumptions

The preparation of financial statements in accordance with PFRS for SMEs requires management to
make estimates and assumptions that affect the reported amounts of income, expenses, assets and
Iiabilities, and disclosure of contingent assets and liabilities. Future events may occur which will cause
the assumptions used in arriving at the estimates to change. The effect of any changes in estimates will
be recorded in the financial statements when reasonably determinable.

Judgments and estimates are continually evaluated and are based on historical experience and other
factors, including expectationof future events that are beyond to be reasonable under the
circumstances.

Judoments
Principal versus agent
An entity is acting as principal if individually or in combination of the scenarios below:
a) the entity has the primary responsibility for providing the goods or services to the customer or for
fulfilling the order;
b) the entity has inventory risk before or after the customer order, during shipping or on return;
c) the entity has latitude in establishing prices, either direcfly or indirecfly;
d) the entity the customer's credit risk on the receivable due from the customer.

ln an agency relationship, the gross inflows of economic benefits often include the amounts collected on
behalf of the principal and the amounts which do not result in increase in equity for the entity. The
amounts collected on behalf of the principal are not revenue; instead revenue is the amount of
commission. The Company recognized income from their service operations as commission income
(Note 14).

Operating lease commitments as /essor

The Company has entered into commercial property leases on its investment properties. The Company
has determined that it retains all significant risks and rewards of ownership of these properties
considering the length of the lease term compared to the estimated useful life of the assets. The
Company accordingly accounted for these as operating leases including the income recognized in these
commitments.
 Page 9 of 21

3.1 Estimatinq deferred tax asset

A deferred tax asset is recognized only to the extent that taxable income will be available against which
the deferred tax asset can be used or when there are sufficient taxable temporary differences which are
expected to reverse in the same period as the expected reversal of the deductible temporary
differences.

As of December 31, 2019 and 2018, the Company cannot reasonably estimate available future taxable
income for which the available deferred tax asset can be recovered, and therefore, the Company did
not set up deferred tax asset.

3.2 Estimatinq present value of retirement liability

The cost of defined retirement plan and other post-employment benefits is determined using actuarial
valuations. The actuarial valuation involves making assumptions about discount rates, future salary
increases, and mortality rates. Due to the complexity of the valuation, the underlying assumptions and
long-term nature of these plans, such estimates are subject to significant uncertainty. All assumptions
are reviewed at each reporting date.

ln determining the appropriate discount rate, management considers the market yields on philippine
government bonds with terms consistent with the expected employee benefit payout
at reporting date,
with extrapolated maturities corresponding to the expected duration of the defined benefit obligation.
Future salary increases are based on expected future inflation rates for the speciflc country.
The
mortality rate is based on publicly available mortality tables for the specific country and
is modified
accordingly with estimates of mortality improvements. The present value of the retirement
liability and
fair value of plan assets are disclosed in Note ,lg.

4. Cash and Other Cash ltems

This account consists of:

2019 2018
Cash in banks P 5,190,452 F 57,393,949
Cash on hand and other cash items 10,000 '10,000
P 5,f 90,452 P 57,403,949

Cash in banks represents deposit with a local bank and commercial bank which earns an annual
interest rate of 1.5% in 2019 and 2018.

Other cash items consist of petty cash fund and cheques received and was not deposited
in bank as of
reporting date.

lnterest income earned by the company rro, casrltli bank amounted to ?176,123 and F312,75g,
respectively.

5. Loan and Other Receivables

This account consists of:

2019 2018
Loan receivable P 2,530,000 P 2,530,000
Accounts receivable 1,009,094 1,900
Accrued rent receivable
738
P 4,298,046 2, 954,638
 Page 10 of 21

Loan receivable pertains to receivables from Unihealth that earns 6.00% interest yearly. lnterest
income
eamed related to the loan amounted to F138,283 and P138,283 in 201g and 2Olg, iespectively
(Note
14).

Accounts receivable pertains to receivable from clients. Accrued rent receivable pertains to
receivable
from lessees.

6. Other Gurrent Assets

This account consists of:

2019 2018
Miscellaneous asset P 31,409,940 F 5,017,560
lnput VAT 3,232,539 568,412
Supplies on hand 2,164,490 12,400
Prepaid taxes
576,989 86,998
p 37,383.847 F

Miscellaneous assets pertains to initial and advance payments for the properties
not yet fully acquired
by the Company at the end of reporting period.

7. lnvestment Properties - Net

2019
Details of lnvestment Properties at December 31, 201g follow:

Land Construction in Leasehold

Land Building lmprovement Progress lmprovements Total
Cost
Beginning balance P 125,603,433 p 55,673,040 ? 1,172,929 p 15,831,648 p P 1gg,2gl,04g
Additions 104,917,937 12,616,454 2,319,843 29,364,136 291,089 149,509,359
Transfers ,737 737
Ending balance 230,521,270 11 3,492,772 2,459,444 291,089 ,790,409

Accumulated depreciation
Beginning balance 2,726,519 539,761 3,265,279
Additions 4,71 ,752 15,312
2 9,454,344
Net book value P P 776 ?
 Page 11 of 21

2018
Details of lnvestment Properties at December 31, 2018 follow:

Land Construction in
Land Buildinq lmprovement Progress Total
Cost
balance P 96,886,453 F '18,25'1,964 F 1,172,929 F 2,419,643 F 1't8,730,989
Beginning
Additions 28,716,980 26,148,146 - 24,684,935 79,550,060
Transfers - 11,272,930 - (11,272,930) -

Accumulated depreciation
Beginning balance 403,501 147,785 551,286
Additions 2 7 976 71
balance 2, 8
Net book F 1 P1 770

Total rental income received from lnvestment properties amounted to F15,359,742 and F5,890,304 in
2019 and 20'18, respectively.

8. Property and Equipment - Net

2019
Details of Property and Equipment are as follows:

2019 2018
Cost
Beginning balance P F
Additions 6,134,190
Endinq balance 6, 1 34.190

Accumulated depreciation
Beginning balance
Additions 1 357 893
Endi balance 1 357 893
book value P 4,776,297 P

ln 2019, the property and equipment account consists of furniture and fixtures purchased by the
Company.

9. Other Noncurrent Asset "' 'l!:i:t

This account consists of deferred input VAT subject to amortization that amounted to P5,701,180 and
?5,752,181as of December 31, 2019 and 2018, respectively.
 Page 12 ol 21

1 0. Current Liabilities

This account consists of:

2019 2018
Accounts payable P 6,113,479 P 13,381,502
Accrued other expenses 1,336,862 731,780
Unearned rental income 828,793 583,760
Withholding tax payable 605,808 209,676
Employee contributions payable 21,847 4,569
P 8.906,790 P 14,911,287

Accounts payable represents amount payable to land owners, contractors, and suppliers in 2019 and
2018.

11. Loans Payable

The composition and movement in this account are as follows:

2019 2018
Face value
Balance at beginning of year P 54,241,938 F 13,258,400
Availment 46,500,000 50,000,000
Principal payments (18,240,2171 (9,016,462)
Balance at end of year 82,501,721 54,241,938

Unamortized transaction cost

Balance at beginning of year 327,014
Availment 348,754 375,000
Principal payments (157,890) (47,986)
Balance at end of year 517,878 327,0',14
Net carrying value P 81,983,843 F 53,914,924

Balance at end of year P 81,983,843 P 53,914,924

Less: Current portion (33,974,597) (19,201,119)
Noncurrent portion P 48,009,247 P 34,713,805

These are loans payable to Land Bank of the Philippines, CARD MBA, CARD MRI Multi-Employer
Retirement Plan (MERP), and CARD, lnc. with annual interest rate of 5o/o.ln 2019 and 2018, interest
paid on loans payable amounted to P4,565,534 and ?2,714,829, respectively. No debt covenant is
being implemented in relation to the loans availed.

12. Other Liabitities

This account consists of security deposits from lessees that amounted to F2,995,671 and ?1,172,955
as of December 31, 2019 and 2018, respectively.
 Page 13 of21

13. Equity

CaoitalStock
As of December 31, 2019, the Company's capital stock consists of:

2019 2018
Shares Amount Shares Amount
Common stock - P100 par value
5,000,000 authorized shares
Balance at the beginning of the year 1,950,005 P 195,000,500 1,250,005 P'125,000,500
lssuance of shares of stocks
from settlement of subscription
receivable 1,050,000 105,000,000 700,000 70,000,000
1 1

On June 14, 2019, the Board of Directors approved the stock dividend declaration that amounted to

"'t,237,503.
Caoital Manaqement
The Company's objectives when managing capital are: (a)'to safeguard the Company's ability to
continue as a going concern; (b) to support the Company's stability and growth by maintaining strong
credit ratings and healthy capital ratios; and (c) to provide capital for the purpose of strengthening the
Company's risk management capability to support and sustain its business growth towards maximizing
the shareholder's value.

Minimum Capital Requirement

The Company considers its equity as its capital and is not subject to any externally imposed regulatory
capital requirements.

14. Revenues

This account consists of:

2019 2018
Rentalincome (Note 7) P 15,359,742 P 5,890,304
Commission income
Accommodation 9,740,442
Construction and renovation facilitation 5,197,343 3,349,855
Property maintenance 576,127 668,861
Asset and property management 75,614 71,320
Other income:
lnterest income from cash in banks "...,**,! 176,123 312,758
lnterest income from loans 138,283 138,283
Miscellaneous income 27 725 18,857
P 31,281,400 P 10,450,238
 Page 14 of 21

15. Expenses

a. Cost of services
Cost of services consist of:

2019 2018
Depreciation expense (Notes 7 and 8) P 6,546,959 F
Rent expense 3,629,95't
Compensation and fringe benefits 2,638,994
Service costs 2,432,026 347,000
Supplies expense 1,013,327
Retirement net of contributions 1 4
P1 347,000

b. Operatinq expenses
Operating expenses consist of:

2019 2018
lnterest expense (Note 11) P 4,565,534 F 2,714,929
Janitorial and messengerial 2,159,031 196,378
Management and professional fees 1,779,557 289,391
Taxes and licenses 1,196,393 129,604
Transportation and travel 1,014,922 396,535
lnsurance expense 438,024 136,420
Depreciation expense (Notes 7 and 8)
2,713,993
Compensation and fringe benefits
742,854
Supplies expense
159,'179
Miscellaneous:
Power, light and water 761,434 38,502
Fines and penalties 266,475
Miscellaneous expense 266,159 15,619
Surveying cost 245,374 85,887
Training and development 191,793 83,918
Communication and postage 161,330 19,801
lnventory write-down 104,725
Repair and maintenance 103,471 71,934
Operating lease 32,100 21,104
lT expenses {5,600 3,065
Periodicals 5,921 1,370
P1 P 7,920,392

:'
", ".Il'tr

16. lncome Tax

a. Applioable Rate
The Company is subject to Regular Corporate lncome Tax (RCIT) rate of 30%.
The Company is not yet
subject to minimum corporate income tax (MCIT), which is compuied at2o/o of gross
income.

b. Ootional Standard Deduction

Effective July 2008, Republic Act 9504 was approved giving corporate taxpayers
an option to claim
itemized deduction or optional standard deduction (osDfequivalent to
40% of gross income. Once the
option to use OSD is made, it shall be irrevocable for the taxable year for which
t-he option was made. ln
2019 and 2018, the company opted to continue claiming itemizei deduction.
 Page 15 of 21

c. Reconciliation
Reconciliation between accounting income and taxable income is presented below:

Regular Corporate lncome Tax (RCIT) 2019 2018

Accounting income P 1,706,998 P 1,733,797
Permanent differences:
lnterest income subject to finaltax (176,123) (312,760)
Penalties and surcharges 266,475 21,000
lnterest expense 58,121 103,211
Temporary differences:
Retirement expense, net of contributions 17,514 24,907
Accrued rent (327,2241 (200,865)
Unearned rent 793 760
P F1
lncome tax expense (current) - al30o/o F 712,333 P 585,912
lncome taxes paid and tax credits (1,289,323) (672,90e)
Income tax P F

d. Provision for income tax consists of:

2019 2018
Provision for finaltax F 35,225 F 62,552
Provision for current tax 712,333 585,912
Total P 747,558 F 648,464

17. Related Party Transactions

Related party relationships exist when one party has the ability to control, direcfly or indirecfly through
one or more intermediaries, the other party or exercise significant influence over the other party in
making financial and operating decisions. This includes: ('1) individual owning, direcfly or indirecly
through one or more intermediaries, control, or are controlled by, or under common control with, the
Company; (2) associates; and (3) individuals owning, directly or indirectly, an interest in the voting
power of the Company that gives them significant influence over the Company and close members of
the family of any such individual.

The Company has several business relationships with related parties. Transactions with such parties
are made in the ordinary course of business and on substantially same terms, including rental,
maintenance and facilitation services, as those prevailing at the time for comparable transactions with
other parties. These transactions also did not involve more than the normal risk of collectability present
or other unfavorable conditions.

a. Transactions with retirement plans

Under PFRS for SMEs, certain post-employment benefit plans are considered as related parties. CARD.
MRI's MERP is a stand-alone entity assigned in facilitating the contributions to retirement starting 2005.
 Page 16 of 21

b. Rental income. maintenance and facilitation income. accounts receivable. and accounts oavable
The table below shows rental income, maintenance and facilitation income, accounts receivable and
accounts payable held by the Company for other related parties.

31,2019
Outstanding
AmounU Volume Balance Nature, Terms and Conditions
Accounts Receivable P 364,485 These are the facilitation for the construction of
Charges ? 16,239,888 building, building maintenance, aircon cleaning and
Collections 15,875,403 maintenance, asset and property management
Accounts Payable 4,854,006 These pertain to the balance for the purchase of
Charges 11,459,965 property in Gensan and Barleta
Payments 6,605,959
Commission lncome 14,999,945 This pertains to income from overseeing the
construction of buildings, building maintenance, aircon
cleaning and maintenance, asset and property
management
Rental lncome 15,359,742 These are the rental fee for the building
Rental Expense 32,100 This pertains to rental of computer desktop

31 2018

Balance and Conditions

9,383,641 Consists of current account with annual interest
Deposits P 85,038,098 rate of 1.50%
Withdrawals 69,863,051
lnterest lncome 1 80,1 85

Accounts Receivable 1,900 These are the facilitation for the construction of
Charges 4,888,787 building, building maintenance, aircon cleaning and
Collections 4,900,591 maintenance, asset and property management
Loans Payable 53,914,924 This pertains to loans availed from CARD MERP with
Availment 62,883,400 an interest rate of 5% based on the outstanding
Settlement 8,969,476 balance payable quarterly and loan availed from CARD
lnterest Expense/Payable 2,714,829 lnc. with an interest rate of 5o/o based on the
outstanding loan balance payable monthly
Commission lncome 4,090,036 This pertains to income from overseeing the
construction of buildings, building maintenance, aircon
cleaning and maintenance, asset and property
management
Rental Income 5,890,304 These are the rental fee for the bullding
Rental Expense 21,104 These pertains to rental of computer desktop

c. Compensation of Kev Manaqement Personnel

Key management personnel are those persons having authority and responsibility for planning,
directing, and controlling the activities of the entity, directly or indirectly, including any director of the
Company.

The compensation of key management personnel includes all form of consideration paid, payable, or
provided bythe Company. This amounted to?562,492 and F0 (nil)in 2019 and 2018, respectively.
 Page 17 ol 21

18. Retirement Benefits

The Company, CARD, lnc., CARD Bank, Inc., CARD SME Bank, lnc., CARD MRI Rizal Bank, Inc.,
CARD MRI Development Institute, lnc., CARD Mutual Benefit Association, lnc., CARD MRI lnsurance
Agency, CARD MRI lnformation Technology, lnc., CARD Employees Multi-Purpose Cooperative,
Responsible lnvestments for Solidarity and Empowerment Financing Co., BotiCARD, lnc., CARD
Leasing and Finance Corporation, CARD-Business Development Service Foundation, lnc., Mga Likha
ni lnay, lnc., CARD MRI Hijos Tours, lnc., and CARD MRI Publishing House, lnc. maintain a funded and
formal noncontributory defined benefit retirement plan - the MERP - covering all of their regular
employees and CARD Group Employees' Retirement Plan (Hybrid Plan) applicable to employees hired
on orafterJuly 1,2017. MERP is valued using the projected unitcost method and isfinanced solelyby
the Group and its related parties.

MERP comply with the requirements of Republic Act No. 7641 (Retirement Law). MERP provides lump
sum benefits equivalent to up to 120% of final salary for every year o'f credited service, a fraction of at
least six (6) months being considered as one whole year, upon retirement, death, total and permanent
disability, or voluntary separation after completion of at least one year of service with the participating
companies.

Hybrid Plan provides a retirement benefit equal to 100.00% of the member's employer accumulated
value (the Bank's contributions of 8.0% plan salary to Fund A ptus credited earnings) and 100.0% of the
Member's Employee accumulated value (member's own contributions up to 10.0% of plan salary to
Fund B plus credited earnings), if any. Provided that in no case shall 100.0% of the Employee
Accumulated Value in Fund A be less than 100.0% of plan salary for every year of credited service.

The latest actuarial valuation report covers reporting period as of December 31 , 2}'lg and 2018.

The movements in the present value of pension obligation follows

2019 2018
Balance at the beginning of the year P (578,896) P
Current service cost (44,459) (29,799)
lnterest expense (32,664)
Transfer to the Plan (764,466)
Actuarialloss 71
Balance at vear F (3,837.634) P (57 8,896

The movements in the fair value of plan assets follows:

2019 2018
Balance at the beginning of the year P 4,921 P
lnterest income ' ".lrt
30,939
Transfer to the Plan 764,466
Contributions 28,771 4,892
Return on assets 29
Balance at the of the year P 798,408 F 4,921

The actual return on plan assets:

2019 2018
lnterest income P 30,838 P
Remeasurement gain (loss) (30,588) 29
Actual return P 250 F 29
 Page 18 of21

The amounts recognized in the statement of financial position follows:

2019 2018
Fair value of plan assets F 798,408 P 4,921
Present value of defined benefit obligation (3,837,634) (578,896)
Effect of asset ceil
P F

The retirement expense recognized in profit or loss:

2019 2018
Current service cost P 32,664 P 29,799
Net interest 13,621
P 46,285 F 29,799

The retirement cost recognized in Other Comprehensive lncome follows;

2019 2018
Cumulative loss in OCl, beginning P 549,069 P
Actuarialloss 2,417,149 549,097
Remeasurement (gain) loss - plan assets 30,588 (2e)
F 2,996,805 P 549,068

The movements in the net retirement liability follows:

2019 2018
Balance at the beginning of the year P 573,975 P
Retirement expense recognized in P&L 46,285 29,799
Retirement expense recognized in OCI 2,47,737 549,068
Contributions (28,7711 (4,892)
Balance at the end of the year P 3,039,226 P 573,975

The allocation of plan assets is as follows:

Cash and cash equivalents 81.48%

Debt instruments - government bonds 1.32o/o
Debt instruments - other bonds 2.27o/o
Mutualfunds 0.57%
Loans 1156%
Other (Market gain/loss, accr. receivables net of etc.) 2.80%
100.00%

Cash and cash equivalents are deposited in reputable financial institutions and related parties and are
deemed to be standard grade. The overall investment policy and strategy of the Company's defined
benefit plans is guided by the objective of achieving an investment return which, together with
contributions, ensures that there will be sufficient assets to pay pension benefits as they fall due while
also mitigating the various risk of the plans.
 Page 19 of 21

The cost of defined retirement plan as well as the present value

of the defined benefit obligation is
determined using actuarial valuations. The actuarial valuation involves
making various assumptions.
The principal actuarial assumptions used in determining pension
for the retirement plan are shown
below:

2019 2018
Discount rate
5.38% 7.68%
Salary increase rate
5.00% 5.00%

The weighted average duration of the defined benefit obligation

at the end of the reporting period is 7.7
years.

19. Leases

The future minimum rentar payabres of the company as a

lessee are as foilows:

2019 2018
Within one year ?' 2,263,597 P
Within the second year but less than 3 years
2,579,203
More than 3 years but less than 5 years
P1 P

The company does not have non-cancellable operating

lease as of Decembe r 31,201gand 201g.
Rent expense recognized totaled P3,629,851 and p16,620,30g
in 201g and 201g, respectively (see
Note 15).

20 . Financial Instruments

The company's financial assets and liabilities are recognized

initially at cost which is the fair value of
the consideration given (in the case of assets) or received (in
the case of riabirity).

Fair values are determined by reference to market-based

evidence, which is the amount for which the
financial assets could be exchanged between a knowledgeable
willing buyer and a knowledgeable
willing seller in an arm's rength transaction as at the varuation
date.

Generally, the maximum credit risk exposure of financial

assets is the carrying amount of the financial
assets as shown on the face of the statement of financial position
(or in the a"tiil"a provided in
the notes to the financial statements). ";;iy;i.
, ,i

The following tables set forth the carrying values and

estimated fair values of the company,s financial
assets and liabilities recognized as of December 31, 201g
and 201g, respectively:

2019 2018
Carrying Fair Carrying Value
Financial assets: Fair Value
Cash on hand and in banks P 5,190,452 P 5,190,452 F 57,403,948 F 57,40s,948
Loan other
638 41 781 8

Financial liabilities:
Current liabilities F 6,942,272 ? 6,942,272 P 14,381,995 F 14,381,995
Loans payable 81,993,943 81,993,943 53,914,924 53,914,924
Other
1 955
 Page 20 of 21

Due to the nature of these financial instruments, their fair values

approximate the carrying values as of
the reporting date.

21. Prior Period Error Correction

ln 2019, errors were discovered in the prior period financial statements.

These errors were corrected by
adjusting the beginning balance of Retained Earnings.

Nature Accounts Affected Before Correction After

Othercomprehensive Retirementplanactuarial
income gain (loss) - net P P (549,068) P (549,068)

22. Approval of the Financial Statements

The accompanying financial statements were approved and authorized

for issuance by the Board of
Directors on March 13,2020.

23. Subsequent Events

since December 31,2019, the spread of coVlD-19 has severely impacted many local economies
around the globe' ln many countries' businesses are being
forced t,o cease or limit operations for long
or indefinite periods of time. Measures taken to contain the
spread of the virus, including travel bans,
quarantines' social distancing, and closures of non-essential services have triggered significant
disruptions to businesses worldwide, resulting in an economic
slowdown. Global stock markets have
also experienced great volatility and a significant weakening,
Governments and central banks have
responded with monetary and fiscal interventions to stabilize
economic conditions.

The Company has determined that these events are non-adjusting

subsequent events. Accordingly, the
company's financial position and results of operations as of
and for the year ended December 31, 2o1g
have not been adjusted to reflect their impact. The duration
and impact of the coVlD-19 pandemic, as
well as the effectiveness of government and central bank
responses, remains unclear at this time. lt is
not possible to reliably estimate the duration and severity of these
consequences, as well as their
impact on the financial position and results of operations
of the company for future periods. The
company assumes that there is no significant doubt about
the entity's ability to continue as a going
concern.

24. Supplementary lnformation Required by Bureau of lnternal Revenue's Revenue

Regulation (RR) No. 15-2010

on November 25,2010, the Bureau of lnternal Revenue issued RR No. 1s-2010

which prescribes
additional procedural and/or documentary requirements in
connection with the preparation and
submission of financial statements accompanying the income
tax returns. Under the said RR,
companies are required to disclose, in addition to the
disclosures mandated under pFRS for sMEs and
such other standards and/or conventions that may heretofore
be adopted, in the Notes to Financial
statements, information on taxes, duties and license fees paid
or accrued during the taxable year.

This supplementary information on taxes and licenses is presented

for purposes of filing with the
Bureau of Internar Revenue and is not required by the pFRS ior sMEs.
 Page 2l ot2t

Following is the required information under RR 15-2010 for the year ended December 31 , 201 g:

a. Value-added tax

Output VAT P 3,703,992

The Company has VATable sales for the year ended December 31 , 2019 that amounted to
?3A,866,514.

lnput VAT P 2,957,546

The work fonrrard analysis of the Company's lnput VAT for its VATable purchases is as follows:

Balance at beginning of the year P 568,412

Add: Purchases or paymentsfor:
Services (Domestic) F 49,942,633 5,993,116
Less:
Output VAT (3,703,992)
Balance at end of the year P 2,957,546

b. Taxes and Licenses

Taxes, licenses and permit fees lodged under this account in the statement of comprehensive income
for 2019 consist of:

Documentary stamp tax P 1,000,000

Land processing and property tax 1r6,639
Business permit and fees 45,269
Building permit and fees 18,226
Others 6,262
P 1.186,393

c, Withholdinq Taxes
The amount of withholding taxes paid/accrued for the year ended December 31, 2o1g:

Paid Payable
Tax on compensation and benefits P 77,019 P 4'1,590
with tax 1 186,340 1

F ,263,358 F 176,4s0

d. Tax Assessments and Cases :i

As of December 31, 20'19, the Company has no deficiency tax assessments and has not been involved
in any tax cases under preliminary investigation, litigation and/or prosecution in courts or bodies outside
the Bureau of lnternal Revenue.