DON-FER PALAY SEEDS AND RICE TRADING

COMPARATIVE STATEMENT OF INCOME AND EXPENSES AS DECEMBER 31, 2015

(In Philippine Peso)

YEARS ENDED DECEMBER 31

REVENUES: 2014 2015

Sales of Certified Seeds 3,712,498.00 3,318,878.55

Sales of Palay 672,241.00 585,684.45

Total Sales 4,384,739.00 3,904,563.00

COST OF PRODUCTION: SCHEDULE A

Farm raw materials used A1 638,594.00 665,478.00

Farm labor cost A2 1,268,301.00 936,742.00
Farm overhead A3 549,235.00 582,453.00

Total Cost of Production 2,456,130.00 2,184,673.00

GROSS PROFIT 1,928,609.00 1,719,890.00

EXPENSES: SCHEDULE B

Marketing and selling B1 225,109.00 197,235.07

General and adminidtrative B2 1,367,971.00 1,198,583.16
Interest and financing B3 138,529.00 121,375.77

Total Expenses 1,731,609.00 1,517,194.00

Net Income Before Tax 197,000.00 202,696.00

Less: Provision for Income Tax (24,250.00) (25,674.00)

NET INCOME FOR THE YEAR 172,750.00 177,022.00

DON-FER PALAY SEEDS AND RICE TRADING
COMPARATIVE SCHEDULE OF COST OF PRODUCTION FOR 2015
(In Philippine Peso)

YEARS ENDED DECEMBER 31

SCH# A PARTICULARS 2014 2015

A1 - RAW MATERIALS USED

Fertilizer/pesticides/cultivarist 485,331.00 505,762.82
Foundation seeds 153,263.00 159,715.18

Total Raw Material Used 638,594.00 665,478.00

A2 - LABOR COST
Harvesting labor cost 532,686.00 393,431.33
Labor incentives 380,490.00 281,022.38
Land pre & planting labor cost 228,295.00 168,614.17
Seed processing labor cost 126,830.00 93,674.13

Total Labor cost 1,268,301.00 936,742.00

A3 - OVERHEAD
Depreciation 495,446.00 495,446.00
Sacks 53,789.00 87,007.00

Total Overhead 549,235.00 582,453.00

TOTAL COST OF PRODUCTION 2,456,130.00 2,184,673.00

- -
DON-FER PALAY SEEDS AND RICE TRADING
COMPARATIVE SCHEDULE OF COST OF EXPENSES FOR 2015
(In Philippine Peso)

YEARS ENDED DECEMBER 31

SCH# B PARTICULARS 2014 2015

B1 - MARKETING AND SELLING EXPENSES

Handling and delivery charges 225,109.00 197,235.07

Total Marketing and Selling Expenses 225,109.00 197,235.07

B2 - GENERAL AND ADMINISTRATIVE EXPENSES

Office staff salaries 147,783.00 127,456.46

Fuel & lubricants 307,881.00 265,534.08
Repair and maintenace 36,946.00 31,864.33
Supplies 49,261.00 42,485.49
Insurance and registration 184,729.00 159,320.79
Depreciation 136,446.00 136,446.00
Transportation and travel 73,892.00 63,728.66
Communication, Light and water 246,305.00 212,427.43
taxes and licenses 49,261.00 42,485.49 -
Representation and donation 61,576.00 53,106.64
Miscellaneous 73,891.00 63,727.80

Total General and Administrative Expenses 1,367,971.00 1,198,583.16

B3 - INTEREST AND FINANCING CHARGES

Interest,services & other charges - RCBC 138,529.00 121,375.77

TOTAL EXPENSES 1,731,609.00 1,517,194.00

- -
DON-FER PALAY SEEDS AND RICE TRADING
COMPARATIVE STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2015
(In Philippine Peso)

ASSETS

YEARS ENDED DECEMBER 31

CURRENT ASSETS 2014 2015

Cash on hand and in bank 126,794.00 396,543.00

Account receivables 89,672.00 186,749.00
Fertilizers & pesticide supplies 54,670.00 162,862.00

Total Current Assets 271,136.00 746,154.00

NON CURRENT ASSETS

Agricultural land 5,228,000.00 5,228,000.00

Farm motor and mechanical equipment 1,108,500.00 1,108,500.00
Office improvements 120,225.00 120,225.00
Office furniture and fixture 55,180.00 55,180.00
Office machine and equipment 80,755.00 80,755.00

Cost 6,592,660.00 6,592,660.00

Accumulated depreciation (3,174,954.00) (3,806,846.00)

Carrying Values 3,417,706.00 2,785,814.00

TOTAL ASSETS 3,688,842.00 3,531,968.00

-
DON-FER PALAY SEEDS AND RICE TRADING
COMPARATIVE STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2015
(In Philippine Peso)

LIABILITIES AND OWNER'S EQUITY

YEARS ENDED DECEMBER 31
CURRENT LIABILITIES 2014 2015
Accounts payable and accrued expenses 250,789.00 153,459.00
Interest payable 98,678.00 53,765.00
Income tax payable 24,250.00 25,674.00

Total Current liabilities 373,717.00 232,898.00

NON CURRENT LIABILITIES

Loan payable 547,297.00 478,546.00

Total NonCurrent liabilities 547,297.00 478,546.00

TOTAL LIABILITIES 921,014.00 711,444.00

PROPRIETOR'S EQUITY 2,767,828.00 2,820,524.00

TOTAL LIABILITIES AND PROPRIETOR'S EQUITY 3,688,842.00 3,531,968.00

-
DON-FER PALAY SEEDS AND RICE TRADING
STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 2015
(in Philippine Pesos)

Balances as of December 31, 2013 2,670,828.00

Net Profit - 2014 197,000.00
Personal withdrawal (100,000.00)
Balances as of December 31, 2014 2,767,828.00
Net Profit - 2015 202,696.00
Personal withdrawal (150,000.00)
Balances as of December 31, 2015 2,820,524.00
DON-FER PALAY SEEDS AND RICE TRADING
STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 2015
(in Philippine Pesos)

2014 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit for the year 197,000.00 202,696.00
Depreciation 631,892.00 631,892.00
Income tax expense
Net Income/Loss before changes in working capital 828,892.00 834,588.00
Adjustments to reconcile net income to net
Changes in operating assets and liabilities
Accounts receivable (48,776.00) (97,077.00)
Fertilizers and pesticide inventories 21,928.00 (108,192.00)
Accounts payable and accrued expenses (63,474.00) (97,330.00)
Other current liabilities (193,282.00) -
Interest payable (29,707.00) (44,913.00)
Income tax payable 482.00 1,424.00
516,063.00 488,500.00
CASH FLOW FROM INVESTING ACTIVIES
Acquisition of property, plant and equipment
Disposal of property, plant and equipment(Net)
(Increase) decrease in Other assets
- -
CASH FLOW FROM FINANCING ACTIVITIES
Personal withdrawal (100,000.00) (150,000.00)
Increase (Decrease) in loans payable (442,254.00) (68,751.00)
(542,254.00) (218,751.00)

NET INCREASE(DECREASE) IN CASH (26,191.00) 269,749.00

CASH BALANCE, BEGINNING 152,985.00 126,794.00
CASH BALANCE, END 126,794.00 396,543.00
-
 25,674.00 25,674.00 23768 1,906.00 0.08
22,500.00
3,174.00
12,696.00
140,000.00
TNI 152,696.00
EXEMP 50,000.00
NI 202,696.00
OPEX 1,517,194
GP 1,719,890 1890793 37815.86 1928608.86
COP 2,184,673
SALES 3,904,563 3639704 72794.08 3,712,498.08
659060 13181.2 672,241.20
4,384,739.28