SARAO MOTORS, INC COMPARATIVE STATEMENT

OF COMPREHENSIVE INCOME
DECEMBER 31, 2011 AND 2010

Their net sales in year 2010 is P11,915,223.14 and in year 2011 is P7,711,780.
From 2010 to 2011 the net sales is amounted to (P4,203,44.14). The amount of
their big loss affected their sales, operation and their income. Because of that, their
net income (loss) in 2010 is (P859,642.7) and in 2011 is (P2,412,982.03). The total
of their net loss from 2010 to 2011 is (P1,553,339.33).
On October 2, 2000 Sarao Motors was forced to halt jeepney production due to
rising costs. Sarao Motors' employees were downsized from 300 to only 50. The
collection department was the only part of the company that remained operational.
Sarao Motors eventually resumed its operation albeit in a lesser scales.

Sarao Motors did not escape unscathed from the challenges the global market was facing at the
dawn of the 21st century.

When the debt crisis struck the Philippines in 1983, Sarao Motors decided to greatly downsize its
operation and no longer do mass production of jeepneys . Higher cost of imported spare parts,
coupled with the weakening of the peso against the dollar, the company had no other choice but to
layoff manpower and downsize from 350 more or fewer employees to 50.
With rising costs of production hurting the business, t hey cannot lure any more local investors or

government to invest in them. Lesser customer means lesser sales. This stage has been a
lamenting stage for Sarao. (video of Ed)
(FS highlights)