FRESLYN DE GUZMAN RICO (FAER CIVIL ENGINEERING SERVICES ) G-1114 St. Joseph Subdivision Palanginan, Iba, Zambales INTERIM FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT As of and for the Month Ended September 01, 2021 SiRio’Certified Public Accountant 30 Accreditation No. 7652, BR Accredhation No, 04-007073-00%-2021 INDEPENDENT AUDITOR’S REPORT FRESLYN DE GUZMAN RICO Doing business under the name of FAER CIVIL ENGINEERING SERVICES TIN: 600-793-039-00000 G-1114 St. Joseph Subdivision Palanginan, tba, Zambales Report on the Audit of the interim Financial Statements Opinion | have audited the financial statements of FAER CIVIL ENGINEERING SERVICES, which comprise the interim statements of financial position as at September 01, 2021, and the interim statements of income (loss), interim statements of cash flows and interim changes in equity/capital for the month then ended, and notes to the interim financial statements, including summary of significant accounting policies. In my opinion, the accompanying interim financial statements present fairly, in all material respects, the interim financial position of the Entity as at September 01, 2021, and its interim statement of loss, its interim cash flows and interim changes in equity/capital for the month then ended September 01, 2021 in accordance with Philippine Financial Reporting Standards for Small Entities (PFRS for SEs). Basis for Opinion ' conducted my audit in accordance with Philippine Standards 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 our report. | am independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the Philippines, the Code of Ethics for Professional Accountants in the Philippines, and | have fulfilled my other ethical responsibilities in accordance with these requirements. | believe that the audit evidence | have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Interim Financial Statements Management is responsible for the preparation and fair presentation of the interim financial statements in accordance with PFRS for SEs, 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 or error. 'n preparing the interim financial statements, management is responsible for assessing the Entity’s 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 Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s interim financial reporting process. Auditor's Responsibilities for the Audit of the Interim Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from ‘material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my 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 a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Sasi’Certified Public Accountant BOA Accreditation NO. 7652, BI Accreditation Ne. O4-007071-001-2021 As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. | also: '* Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for 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 Entity’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 Entity’s ability to continue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as @ going concern. ‘Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. have 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 Revenue Regulations Nos. 15-2010 and 19-2011 My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. ‘The Supplementary Information Required under Revenue Regulations Nos. 15-2010 and 19-2011 on taxes, duties and license fees, and taxable income and deductions 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 respects in relation to the basic financial statements taken as a whole. ANDREIU MARRS. ESMELE CPA Reg. No. 0446676 TIN 277-503-61-000 PTR No 85742§5, sued on January 14, 2021 4 1 PRC BOA Accreditation No. 7652, Issued on March 04, 2021, Valid until June 28, 2028 BIR AN 04-007071-001-2021, lssued on April 0S, 2021 Valid until April 08, 2028 City of Olongapo, Zambales, Philippines September 08, 2021 fakerCertified Public Accountant 204 Accreditation No, 7652, IR Accreditation No. 04-007073-001-2023 SUPPLEMENTAL REPORT OF INDEPENDENT AUDITHOR TO ACCOMPANY FINANCIAL STATEMENTS FOR FILING WITH THE BUREAU OF I FAER CIVIL ENGINEERING SERVICES TIN: 600-793-039-00000 G-1114 St. Joseph Subdivision Palanginan, tba, Zambales TERNAL REVENUE (BIR) | have audited the accompanying interim financial statements of FAER CIVIL ENGINEERING SERVICES as of and for the month ended August 12 2021 to September 01, 2021, on which | have rendered our report, dated September 08, 2022. In compliance with Revenue Regulation V-20, | am stating that | am not related by consanguinity or affinity to the president, manager or any officer of the business, ANDREIU MARK §. ESMELE CPA Reg, No. 0146676 TIN 27-503-681-9)0 PTR No. 8674268, fesued on January 14, 2021 PRC BOA Accreditation No. 7652, Issued on March 04, 2021 Valid until June 18, 2024 BIR AN 04-007071-001-2021, issued on April 05, 2021 Valid until April 05, 2024 City of Olongape, Zambales, Philippines September 08, 2021 weSTATEMENT OF MANAGEMENT'S RESPONSIBILITY FOR INTERIM FINANCIAL STATEMENTS The Management of FAER CIVIL ENGINEERING SERVICES is responsible for the preparation and fair presentation of the interim financial statements for the month ended September 01, 2021 in accordance with the prescribed financial reporting framework indicated therein. This responsibility includes designing and implementing internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatements, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. The individual taxpayer reviews and approves the financial statements. ‘Andreiu Mark Salvador Esmele, an independent auditor, appointed by the taxpayer has examined the financial statement of the business in accordance with Philippine Standard on Auditing, has expressed its opinion on the fairness of presentation upon completion.of such audit. Signed this 7" day of September 2021. ee FRESLYN DE GUZMAN RICO Proprietor / Owner jakoFRESLYN DE GUZMAN RICO Doing business under the trade name FAER CIVIL ENGINEERING SERVICES _ INTERIM STATEMENT OF FINANCIAL POSITION As of September 01, 2021 laounts in Philippine Peso September 01 ores 202 ‘ASSETS CURRENT ASSETS Cash and Cash equivalents 3184 2,173,000 Total Current Assets 2,173,000 NON-CURRENT ASSETS land 78,000 Building 518,560 Accumulated Depreciation - Building (2,053) Office Equipment one 56,000 ‘Accumulated Depreciation - Office Equipment 7°.) (403) Furnitures and Fixtures 35,000 Accumulated Depreciation - Furniture & Fixture (277) Service Vehicle 100,000 ‘Accumulated Depreciation - Service Vehicle 792) Total Non-Current Assets 783,995 TOTALASSETS, 2,956,995 ABILITIES AND EQUITY TOTALUABILITIES 2 CAPITAL Freslyn De Guzman, Capital ‘ 2,960,560 Net income / (Loss}for the year (3,565) Less: Drawings " TOTAL CAPITAL 956,995 TOTALLIABILITIES AND CAPITAL 2,956,995 ‘See Notes to Finoncil Statements {efi FRESLYN DE GUZMAN RICO Proprietor / OwnerFRESLYN DE GUZMAN RICO Doing business under the trade nome FAER CIVIL ENGINEERING SERVICES INTERIM STATEMENT OF INCOME (LOSS) For the Month Ended August 12 to September 01, 2021 {amounts in Philippine eso) September O1 Notes REVENUE COST OF SERVICES GROSS INCOME 7 Depreciation (3,565) ‘TOTAL OPERTING EXPENSES (3,565) NET INCOME (LOSS) (3,565) See Notes to Financial Statements Fifi FRESLYN DE GUZMAN RICO Proprietor / Owner =FRESLYN DE GUZMAN RICO Doing business under the trade name FAER CIVIL ENGINEERING SERVICES INTERIM STATEMENT OF CASHFLOW For the Month Ended August 12 to September 01, 2021 Amounts in Phillppine Peso September 01 ‘Notes 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net income for the year (3,565) Depreciation and Amortization 3,565 Operating profit before working capital changes - (Increase) / decrease in operating assets: - Increase / (decrease) in operating liabilities : Net Cash provided by Operating Activities = CASH FLOWS FROM INVESTING ACTIVITIES uisition of Property and Equipment 5 709, Net Cash provided from investing activities (709,560) CASH FLOWS FROM FINANCING ACTIVITIES ‘Net Cash provided (used) from financing activities : NET INCREASE (DECREASE) IN CASH » (709,560) CASH AT BEGINNING OF PERIOD. 2,882,560 SSD AT BEGINNING OF RERIOD. RSD CASH AT END OF PERIOD. 4 2,173,000 —_—SSS— I 273,000 ‘See Notes to Financial Statements papi FRESLYN DE GUZMAN RICO Proprietor / OwnerFRESLYN DE GUZMAN RICO Doing business under the trade name FAER CIVIL ENGINEERING SERVICES INTERIM STATEMENT OF CHANGES IN EQUITY For the Month Ended August 12 to September 01, 2021 Amountsin Philippine Peso) September 01 Notes 2024 Freslyn De Guzman, Capital Beg. 2,960,560 Net Income / (Loss)for the year (3,565) Less: Drawings : Capital Ending Balance 2,956,995 See Notes to Financia Statements, Ua FRESLYN DE GUZMAN RICO Proprietor / OwnerFAER CIVIL ENGINEERING SERVICES (NOTES TO INTERIM FINANCIAL STATEMENTS) As of September 01, 2021 1, BUSINESS INFORMATION FAER CIVIL ENGINEERING SERVICES is owned and managed by FRESLYN DE GUZMAN RICO. The business is registered with the Bureau of Internal Revenue (BIR) on August 12, 2021, under certificate of registration OCN 018RC20210000000367 with TIN 600-793-039-00000. The official address of the business is G-1114 St. Joseph Subdivision Palanginan, Iba, Zambales. The Entity has no permanent employee; manpower is primarily per project basis and administration works are performed by family members on the basis of change. Approval of Financial Statements The interim financial statements as of and for the month ended September 01, 2021 was approved and authorized for issue by FRESLYN DE GUZMAN RICO (owner) on September 07, 2021. 2, STATEMENT OF COMPLIANCE WITH THE PHILIPPINE FINANCIAL REPORTING STANDARD (PFRS) FOR SMALL AND MEDIUM-SIZED ENTITIES (SMEs) 2.1 Basis of Compliance The financial statements have been prepared in compliance with the Philippine Financial Reporting Standards for Small Entities (PFRS for SEs) issued by the Philippine Financial Standards Council. They are presented in Philippine Peso which is the Company's functional and presentation currency. All amounts are rounded to the nearest peso. 2.2 Going-Concern Management sees no relevant conditions and events that indicate that itis possible that Faer Civil Engineering Services will be unable to meet its obligation as they become due within one year after the date that the financial statements are issued. 2.3 Basis of Measurement The financial statements have been prepared on historical cost basis. » Summary of Significant Accounting Policy 3.1 Cash and Cash Equivalents Cash includes cash on hand and in banks. Cash equivalents are short term, highly liquid investments that are readily convertible to know amounts of cash with original maturities of three months or less and that are subject to an insignificant risk of change in value. 3.2 Property and Equipment Property and equipment are stated at cost less accumulated depreciation and any accumulated impairment loss. The initial cost property and equipment comprises its purchase price and other ypdirectly attributable costs of bringing and asset to its working condition and location for its intended use. Such cost includes the cost of replacing part of such property and equipment when that cost is incurred if the recognition criteria are met. It excludes the cost of day-to-day servicing. Depreciation is computed using the straight-line method, net of any estimated residual value; over the estimated useful lives of the assets as follows: Building 20 years Office Equipment 10 years Furniture and Fixtures 10 years Service Vehicle 10 years If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of an asset, the depreciation on that asset is revised prospectively to reflect the new expectation, ‘An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from DE recognition of the asset (calculated as difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the assets is derecognized. 3.3 Asset Impairment ‘At each reporting date property, plant and equipment, intangible assets are reviewed to determine ‘whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount \s reduced to its estimated recoverable amount (selling price less costs to complete and sell, in the case of inventories), but not in excess of the amount that would have been determined had no impairment loss been immediately in profit or loss. 3.4 Management's Significant Accounting Judgements and Estimate Judgement Management makes judgement in the process of applying the company’s accounting policies. Estimates The key resources of estimation uncertainly at the reporting date that have significant risks causing ‘material adjustment to the carrying amounts of assets within the next reporting period are discussed below: # Impairment of Property, Plant and Equipment The company assesses impairment on its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ‘The factors that the company considers important which could trigger impairment review include significant underperformance relative to the expected historical of projected future operating results and significant changes in the manner of use of the acquired assets or strategy for overall business. The carrying amount of property and equipment as of September 01, 2021 amounted to P783,995. Hifi4. Cash and Cash Equivalent This account at September 01, 2021 consists of the following: ash on hand 123,000.00 Cash in Bank 2,050,000.00 Total Cash and Cash Equivalents 2,173,000.00 Cash in banks earn interest at the respective bank deposit rates. 5. Property and Equipment ‘The details of property, plant and equipment are as follows: ‘August 12, 2021 Additions September 01, 2021 Land 78,000 : 78,000 Building 518,560 : 518,560 Office Equipment 56,000 : 56,000 Furnitures and Fixtures 35,000 : 35,000 Service Vehicle 100,000 : 100,000 Total 787,560 : a 560 Less: Accumulated Depreciation Building . 2,053 Office Equipment - 443 Furnitures and Fixtures - 27 Service Vehicle Hee : 792 Total i : 3,565_ Carrying Value 787,560 783,995 6. Owner's Equity This account at September 01, 2021 consists of: Capital, Beginning : Add: Additional Investments 2,960,560 Net income (3,565) Less: Drawings : Capital, Ending 2,956,995