PRIMO SERVICE PROVIDER

5th Floor RM Bldg. East Tapinac

Magsaysay Drive Olongapo City

BASIC ASSUMPTION IN FINANCIAL STATEMENT

I. LABOR COST AND COMPENSATION
SCHEDULE 1. Proposed manpower compliment and compensation package
Daily Monthly No. of Annual
No. POSITION Rate Salary Employees Salary
1. Manager 800 20,800 1 249,600
2 Admin Officer 600 15,600 1 187.200
3 Finance Officer 600 15,600 1 187,200
4 Mechanical Engineer 600 15,600 1 187,200
5 Chief Mechanic 500 13,000 9 1,248,000
6 Mechanic Helper 400 10,400 9 998,400
7 Maintenance Staff 300 7,800 1 93.600
TOTAL LABOR COST 3,800 98,800 23 3,151,200
Notes to Salary Compensation:
1. The Maintenance Personnel working time is 4 hours a day only
2. The annual salary of Chief Mechanic and Mechanic Helper was based on actual work
rendered computed on a daily basis (see schedule on Direct Labor Cost)

SCHEDULE 2. Employer’s share on employee’s benefits

Monthly Phil Monthly Annual
No POSITION Salary SSS Health HDMF Contribution Contribution
1. Manager 20,800 1,179 572 416 2,167 26,004
2 Admin Officer 15,600 563 429 312 1,304 15,648
3 Finance Officer 15,600 563 429 312 1,304 15,648
4 Mechanical Engineer 15,600 563 429 312 1,304 15,648
5 Chief Mechanic 13,000 472 358 260 x 9 4,070 48,840
6 Mechanic Helper 10,400 382 286 208 x 9 3,245 38,940
7 Maintenance Staff 7,800 91 215 156 462 5,544
TOTAL LABOR COST 98,800 3,813 2,717 5,720 13,856 166,272
Notes to Employee’s Benefits:
1. The current SSS contribution rate is 11% of the monthly Salary Credit not exceeding P16,000 and
this is being shared by the employer (7.37%) and employee (3.63%)
2. HDMF contribution of employer is 2% of monthly salary rate.
3. Employer’s share in PhilHealth contribution based on monthly Salary Credit of employees are the
following:
a. P10,000 and below P137.50
b. P11,250 – P154.50
c. P25,410 – P349.50

SCHEDULE 3. Official Calendared Holidays.

NO DATE HOLIDAY NAME HOLIDAY TYPE

1 1-Jan New Year's Day Regular Holiday
2 16-Feb Chinese New Year Special Non-Working Holiday
3 25-Feb EDSA Anniversary Special Non-Working Holiday
4 29-Mar Maundy Thursday Regular Holiday
5 30-Mar Good Friday Regular Holiday
6 31-Mar Black Saturday Special Non-Working Holiday
7 9-Apr Araw ng Kagitingan Regular Holiday Every
8 1-May Labor Day Regular Holiday employee is
9 12-Jun Independence Day Regular Holiday entitled to at
10 21-Aug Ninoy Aquino Day Special Non-Working Day least 100% of
11 22-Aug Eid al-Adha Regular Holiday his or her basic
12 27-Aug National Heroes Day Regular Holiday wages even if
13 1-Nov All Saint's Day Special Non-Working Day he or she did
14 2-Nov All Souls Day Special Non-Working Day not report for
B15 30-Nov Bonifacio Day Regular Holiday work. But if he
16 8-Dec Immaculate Conception Special Non-Working Day
17 24-Dec Chirstmas Eve Special Non-Working Day
18 25-Dec Christmas Day Regular Holiday
19 30-Dec Rizal Day Regular Holiday
20 31-Dec New Year's Eve Special Non-Working Day
or she will performed the work on that day it will be at least twice (200%) of the basic wage of
the employee.

This provision is applicable to Service Crews who are assumed to work throughout the year with
only one rest day every week.

Service Crews Daily Rate Holiday Pay Workers Holiday Additional Salary
Chief Mechanic 500 1,000 9 20 Days P90,000
Mechanic Helper 400 800 9 20 Days P72,000
TOTAL 900 1,800 18 20 Days P162,000

SCHEDULE 4. 13th Month Pay

It is an additional income based on wage required by Presidential Decree No. 851 requiring all
employers to pay their employees at 13th month pay which is equivalent to 1/12 of the total basic
salary earned by an employee within a calendar year.
Monthly No. of 13th Month
No POSITION Salary Employees Pay
1. Manager 20,800 1 20,800
2 Admin Officer 15,600 1 15,600
3 Finance Officer 15,600 1 15,600
4 Mechanical Engineer 15,600 1 15,600
5 Chief Mechanic 13,000 9 117,000
6 Mechanic Helper 10,400 9 93,600
7 Maintenance Staff 7,800 1 7,800
TOTAL LABOR COST 98,800 23 286,000

SCHEDULE 5. Other Benefits for Employees

a. Service Incentive Leave
The company gives five (5) days leave with pay for every employee who has rendered at
least one (1) year of service. It is commutable to its money equivalent if not used or
exhausted at the end of year.

b. Sick Leave
Sick leave is a paid absence from duty. An employee is entitled to use sick leave for
personal medical needs, family care or adoption-related purposes. This benefit is only
applicable for managerial employees, as per the company’s policy. The Manager must be
regular and shall have three (3) days annual sick leave with pay.

c. Maternity Leave
A covered female employee is entitled to a daily maternity benefit equivalent to 100% of
her present basic salary, allowances and other benefits or the cash equivalent of such
benefits for sixty (60) days or seventy eight (78) days in case of caessarian delivery.

d. Paternity Leave
The company allows every married male employee not to report for work for seven (7)
days but continues to earn the compensation therefore, on the condition that his spouse
has delivered a child or suffered a miscarriage for purposes of enabling him to effectively
lend support to his wife in her period of recovery and/or in the nursing of the newly-born
child.

e. Solo Parent Leave

 Parental leave of seven (7) days for solo parents is granted to any solo parent or
individual who is left alone with the responsibility of parenthood.
 Solo parent employee should have rendered at least one (1) year of service, whether
continuous or broken.
 The employee should notify his or her employer that he or she will avail of the leave
within a reasonable period of time.
 The solo parent employee must present to the employer his or her Solo Parent
Identification Card.
 Not convertible into cash
 f. Cost of Living Allowance (COLA) – A wage increase to help workers keep up with
inflation.

SCHEDULE 6. Amortization of Loan for Capital Investment

Name of Partners Capitalization 1st Year 2nd Year 3rd Year
Castillo, Angelica 150,000 65,000 60,000 55,000
Cardenas, Peter 150,000 65,000 60,000 55,000
Mendez, Hazel 150,000 65,000 60,000 55,000
Palencia, John Leo 150,000 65,000 60,000 55,000
Taclobo, Xyra Shane 150,000 65,000 60,000 55,000
TOTAL CAPITAL 750,000 325,000 300,000 275,000
An interest of 10% per annum shall be charged based on the diminishing balance of the principal during
amortization payable in three (3) years

SCHEDULE 7. Initial

A. FIXED CAPITAL
Office Machineries and Equipment 159,986.00
Miscellaneous 2,837.00
TOTAL 162,823.00

B. PRE-OPERATING EXPENSES
Office Supplies 11,466.25
Maintenance Supplies 3,049.05
Advertising Expense 7,750.00
Uniform Expense 1,200.00
Rent Expense 26,000.00
Transportation Expense 250,000.00
Mechanical Tools Expense 186,947.00
Licenses Permits 11,429.00
Personal Protective Equipment 45,000.00
TOTAL 542,841.03
TOTAL PROJECTED COST 705,664.03

OFFICE SUPPLIES EXPENSE

  QTY UNIT UNIT COST TOTAL
Ball Pen 1 Pack PHP 24.75 PHP 24.75
Scissors 2 pc. PHP 69.75 PHP 139.50
Tape 2 pc. PHP 40.75 PHP 81.50
Staple Wire 1 Box PHP 26.75 PHP 26.75
Paper Clips 1 Box PHP 32.75 PHP 32.75
Push Pins 1 Box PHP 17.75 PHP 17.75
Fastener 1 Box PHP 59.75 PHP 59.75
Alcohol 5 (500) milliliter PHP 38.75 PHP 193.75
Printer Ink 2 pc. PHP 249.00 PHP 498.00
Stamp Pad Ink 1 pc. PHP 109.75 PHP 109.75
Bond Paper 1 Ream PHP 189.75 PHP 189.75
Brown Envelope 1 Pack PHP 29.75 PHP 29.75
6Folder 1 Pack PHP 22.00 PHP 22.00
Record Book 2 pc. PHP 74.75 PHP 149.50
DTR 1 Pack PHP 49.75 PHP 49.75
Invoice Pad 3 Pack PHP 104.75 PHP 314.25
Receipt 3 Set PHP 1,400.00 PHP 4,200.00
Filing Cabinet 1 Unit PHP 3,495.00 PHP 3,495.00
Paper Shelf 1 pc. PHP 69.00 PHP 69.00
 Puncher 1 pc. PHP 84.75 PHP 84.75
8Tape Dispenser 1 pc. PHP 100.00 PHP 100.00
Stapler 2 pc. PHP 100.00 PHP 200.00
Calculator 2 pc. PHP 229.75 PHP 459.50
Bulletin Board 1 pc. PHP 209.75 PHP 209.75
Date Stamp 1 pc. PHP 37.00 PHP 37.00
Customized Stamp 3 pc. PHP 150.00 PHP 450.00
Stamp Pad 1 pc. PHP 162.75 PHP 162.75
TOTAL       PHP 11,466.25

ADVERTISING EXPENSE

  Quantity Cost per Unit Total Cost

Tarpaulin 10 PHP 500.00 PHP 5,000.00
PLDT Internet 1 PHP 2,300.00 PHP 2,300.00
Flyers 50 PHP 5.00 PHP 250.00
Business Card 50 PHP 4.00 PHP 200.00
TOTAL     PHP 7,750.00

MAINTENANCE EXPENSE
  QTY UNIT UNIT COST TOTAL
Tissue 20 Roll PHP 49.75 PHP 995.00
Liquid Soap 2 Gallon PHP 180.00 PHP 360.00
Dish Washing Soap 2 (250) milliliter PHP 60.00 PHP 120.00
Dish Washing Sponge 2 pc. PHP 11.75 PHP 23.50
Detergent Powder 12 (1,000) gram PHP 32.00 PHP 384.00
Air Freshener Spray 1 (300) milliliter PHP 207.00 PHP 207.00
Window Spray 1 (500) milliliter PHP 450.00 PHP 450.00
Trash Bag 12 Pack PHP 30.00 PHP 360.00
Mineral Water 5 (5) gallon PHP 30.00 PHP 150.00
TOTAL PHP 3,049.05

OFFICE MACHINERIES AND EQUIPMENT

  QTY UNIT UNIT COST TOTAL
CCTV 1 Pc. PHP 1,299.00 PHP 1,299.00
Desktop 1 set PHP 30,300.00 PHP 30,300.00
Laptop 1 set PHP 17,600.00 PHP 17,600.00
Printer 1 set PHP 7,950.00 PHP 7,950.00
Time Recorder Clock 1 unit PHP 8,500.00 PHP 8,500.00
Air Conditioner (Window Type) 2 unit PHP 19,700.00 PHP 39,400.00
Generator 1 unit PHP 22,999.00 PHP 22,999.00
Water Dispenser 1 unit PHP 4,495.00 PHP 4,495.00
Divider 1 unit PHP 6,095.00 PHP 6,095.00
Waiting Area Sofa 1 unit PHP 3,800.00 PHP 3,800.00
Office Table 2 unit PHP 3,095.00 PHP 6,190.00
Office Chair 2 unit PHP 5,850.00 PHP 11,700.00
TOTAL       PHP 159,986.00

PERMITS AND LICENSES

Mayor’s Permit/Business Permit PHP 3,733.33
Sanitary Permit PHP 1,866.67
 Barangay Clearance PHP 200.00
Zoning Certification PHP 150.00
Zoning Inspection PHP 150.00
Business Plate Fee PHP 150.00
Business Sticker Fee PHP 100.00
Computerized Collection Fee PHP 10.00
Computerized Processing Fee PHP 50.00
Geographic Info System Fee PHP 100.00
ESMO PHP 300.00
Garbage Fee PHP 50.00
Fire Safety Inspection PHP 731.00
Registration (BIR) PHP 500.00
SEC PHP 3,338.00
TOTAL PHP 11,429.00