AU Locks Auditing Services

EXECUTIVE SUMMARY

The Batangas Best Feeds came into existence with the closure of Vine Feeds
situated at Meralco Road, Banaba South, Batangas City owned by Vicente Pastor Jr..
Unutilized feed mill facilities gave Mr. Arthur Luna together with Mr. Macalalad to
approach Mr. Pastor of the feed mill reopening. Friends and family members who were
interested to invest were contacted.

A meeting was held, and it was agreed that the feed mill will be reopened by mid
of March 2007 with a new name and will be organized as a cooperative. There were 15
original members that invested P 150, 000.00 each and they were Jeaneth M. Maalihan,
Flora Macalalald, Teody Atienza, Nestor Abacan, Reynaldo de la Cruz, Gil Gutierrez,
Arthur Luna, Mario Luneta, Florendo Macatangay, Vicente Pastor Jr., Julian Pedro
Pastor, Raymund Ponce, Estelita Rodelas, Mario Pita and Minda Macaraig.

The members agreed to rent the feed mill together with the facilities and delivery
truck at an amount of P40,000.00 per month. The first dry run of operation was
conducted on March 19, 2007. On the feed mill’s first two weeks of operation, 1,778
bags were sold with an equivalent net income of P 67,568.40.

Members’ patronage brought the continued increase in number of bags sold that
proved the feed mill’s optimum profitability. With this scenario, membership increased to
28 by July 2007. Positive results of operation (more than a million income from March to
September 2007) gave the members the idea of acquiring the feed mill. Having full trust
and confidence to the appointed officers, the member lent P 4,000,000.00 to the feed mill.
The feed mill was acquired on September 2007 at a cost of P5,000,000.00.

Batangas Best Feeds acquired its registration as a Cooperative on January 2008

with an authorized capital share of P28, 040,000.00

Increase on the members feed requirement gave way for the acquisition of a new
delivery truck on February 2008. Minor improvements were also made on the feed mill’s
office building and employee’s canteen.

BATANGAS BESTFEEDS COOPERATIVE first general assembly was held on

March 2008 with the following as elected Board of Directors:

With all these achievements, there is no doubt BBFC has crossed the right path to
success and it does not end here…Significant projects are lined up for the members’
benefits, which will eventually make BBFC a more progressive and accomplished
cooperative. With great courage and conviction and with the unified actions of the
cooperative and its members, surely, BBFC will make it on top.