REPORT OF INDEPENDENT AUDITOR

MR. ALEXANDER G. LAXAMANA

LAXAMANAPALAY TRADING
Brgy. Lawy, Capas Ignacia, Tarlac

Report on the Audit of the Financial Statements

Opinion
I have audited the financial statements of LAXAMANA PALAY RADING, which comprise the
Statement of Financial Position as at December 31,2016 and the statement of comprehensive
income, statement of changes in equity and statement of cash flow for the years then ended, and
notes to the financial statements including a summary of significant accounting policies.

In my opinion, the accompanying financial statements present fairly, in all material aspects, the
financial position of MR. ALEXANDER G. LAXAMANA as at December 31, 2018 and of its financial
performance and its cash flows for the years then ended in accordance with Philippine Financial
Reporting Standard (PFRS).

Basis for opinion

I conducted my audits in accordance with Philippine Standard on Auditing(PSAs) My responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of my report. I am independent of the company in accordance with the
Code of Ethics for Professional Accountants in the Philippines, and I have fulfilled my other ethical
responsibilities in accordance with these requirements. I believe that the audit evidence I have
obtained is sufficient and appropriate to provide a basis for my opinion.

Responsibilities of Management and those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the PFRSs and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether
due to fraud of error

In preparing the financial statements, management is responsible for assessing the company ability
to continue as a going concern, disclosing, as applicable matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the company or
to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company financial reporting
process.

Auditor’s responsibilities for the audit of Financial Statements

My objectives are to obtain reasonable assurance about whether the financial statement as a whole
are free from material misstatement, whether due fraud or error, and o issue an auditor’s report that
includes our opinion reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with PSAs will always detect material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decision of users taken on the
basis of these financial statements.

As part of an audit in accordance with PSAs, I exercise professional judgment and maintain
professional skepticism throughout the audit. I also:

 Identify and assess the risk of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risk and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
 The risk of not detecting a material misstatement resulting from fraud higher than or one
resulting from error as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the company’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of

accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the company’s ability to
continue going concern. If we conclude that a material uncertainty exist, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are iadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date our auditor’s report. However, future events or
conditions may cause the company to cease to continue as a going concern.

I communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Report on the supplementary information required under the Revenue Regulations 15-
2010
My audits were conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information on taxes, duties and license fees in note 16 to the
financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is
not a required part of the basic financial statements. Such information is the responsibility of
management. The information has been subjected to the auditing procedures applied in our audit of
the basic financial statements. In our opinion, the information is fairly stated in all material respect
in relation to the basic financial statements taken as a whole.

JESUS L. DIZON JR.

CPA Cert no. 33506
TIN no. 211-508-224
PRC/BOA Cert no. 0098
Date issued: March 28, 2016 Date expiry: December 31, 2018
BIR No. 04-000781-001-2016
Date issued: January 18, 2016 Date expiry: December 31, 2018
PTR No. 8819222, January 3, 2017
Concepcion, Tarlac

April 12, 2017

Concepcion, Tarlac
LAXAMANA PALAY TRADING
ALEXADER G. LAXAMANA
STATEMENT OF FINANCIAL POSITION
FOR THE PERIOD ENDED DEC 31, 2018 and December 31, 2017
(in Philippine pesos)

2018 2017
ASSETS
Current Assets:
Cash and Cash Equivalent 2,032,050.28 1,531,310.00
Trade and Other Receivabes 2,077,945.00 1,908,660.00
Inventories 398,916.56 581,078.00
TOTAL CURRENT ASSETS 4,508,911.84 4,021,048.00

Non current Assets:

Property, Plant and Equip-NET 9,756,400.00 9,891,800.00
TOTAL NON CURRENT ASSETS 9,756,400.00 9,891,801.00

TOTAL ASSETS 14,265,311.84 13,912,849.00

LIABILITIES AND OWNER'S EQUITY

LIABILTIES
Current Liabilities:
interest payable
TOTAL CURRENT LIABILITIES

Non current liabilities

Loans Payable 2,500,000.00 2,500,000.00
TOTAL NON CURRENT LIABILITIES 2,500,000.00 2,500,000.00

TOTAL LIABILITIES 2,500,000.00 2,500,000.00

OWNER'S EQUITY
LAXAMANA capital 11,765,311.84 11,412,848.00
TOTAL OWNER'S EQUITY 11,765,311.84 11,412,849.00

TOTAL LIABILITIES AND OWNER'S EQUITY 14,265,311.84 13,912,849.00

LAXAMANA PALAY TRADING
ALEXADER G. LAXAMANA
STATEMENT OF FINANCIAL
POSITION
FOR THE PERIOD ENDED DEC 31, 2018 and Dec 31, 2017
(in Philippine pesos)

2018 2017

INCOME STATEMENT

GROSS SALES 9,201,471.03 8,781,134.82

Less: Sales discount 184,029.00 175,623.00
NET SALES 9,017,442.03 8,605,511.82

Cost of sales:
Inventory- BEG 581,078.00 665,720.00
Purchases 5,949,699.14 5,767,106.00
Total Goods available for sale 6,530,777.14 6,432,826.00
Less: Inventory- END 398,916.56 581,077.96
COST OF SALES 6,131,860.58 5,851,748.04
GROSS PROFIT 2,885,581.45 2,753,763.78

Less: OPERATING EXPENSES

salaries 1,081,800.88 1,054,812.16
power, light, water 317,397.80 301,560.00
communication 164,387.00 160,146.00
Delivery expense 252,834.00 240,399.00
Depreciation 135,400.00 135,400.00
Interest expense 198,111.11 198,111.11
Supplies Expense 83,187.32 100,563.00
TOTAL 2,233,118.11 2,190,991.27

NET INCOME 652,463.34 562,772.51

LAXAMANA PALAY TRADING
ALEXADER G. LAXAMANA
STATEMENT OF FINANCIAL POSITION
FOR THE PERIOD ENDED DEC 31,2018 and Dec 31,2017
(in Philippine pesos)

2018 2017

CASH FLOW FROM OPERATING

ACTIVITIES
Profit (Loss) before Income
Tax 652,463.34 562,772.51
Adjustment for:
Depreciation 135,400.00 135,400.00
Finance Cost
Operating cash flows before movements in working Capital 787,863.34 698,172.51
(Increase) Decrease in operating assets:
Trade and Other Receivables (169,285.00) (158,010.00)
Inventories 182,161.54 84,642.00
Decrease in the trade and other
receivables
Cash generated from (used in)
operations 800,739.88 624,804.51

Net Cash from (used in) operating

activities 800,739.88 624,804.51

CASH FLOW FROM INVESTING

ACTIVITIES
Additions to property and equipment
Net Cash used in investing activities

CASH FLOW FROM FINANCING

ACTIVITIES
Payment to Loan
Prior Year Adjustment (Loan Availment)
Proceeds from (Payments of) Owner (300,000.00) (300,000.00)
Net Cash used in financing activities (300,000.00) (300,000.00)

NET INCREASE (DECREASE) IN CASH 500,739.88 324,804.51

CASH AT THE BEGINNING OF THE YEAR 1,531,310.40 1,206,505.89

CASH AT THE END OF THE

PERIOD 2,032,050.28 1,531,310.40