INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Sky Shopping Plaza Inc.

Report on the Audit of the Financial Statements
Adverse Opinion
We were engaged to audit the financial statements of Sky Shopping Plaza Inc. which
compromise the statements of financial position as of December 31, 2021 and 2020, and the
related statements of income, changes in stockholders’ equity and cash flows for the years then
ended, and notes related to the financial statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion, because of the significance of the matter described in the Basis for Adverse
Opinion section of our report, the accompanying financial statements do not present fairly the
financial position of the Company as at December 31, 2021 and its financial performance and
cash flows for the year then ended in accordance with the Philippine Financial Reporting
Standards.
Basis for Adverse Opinion
On January 15, 2021, the Company issued debentures in the amount of ₱1,000,000 for the
purpose of financing plan expansion. The debenture agreement restricts the payment of future
cash dividends to earnings after December 31, 2020. In our opinion, disclosure of this
information is required by PFRS 9.
We have conducted our audits in accordance with Philippine Standards on Auditing. Those
standards require that we comply with the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free form
material misstatements. We believe that we have fulfilled our ethical responsibilities in
accordance with these requirements and he Code of Ethics. We also believe that audit evidence
we have obtained is sufficient and appropriate to provide a basis for our adverse opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Philippine Financial Reporting Standards, and for such internal
control as management determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Those charged with governance are responsible for overseeing the Sky Shopping Plaza Inc.
financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
Our responsibility is to conduct an audit of the Company’s financial statements in accordance
with the Philippine Standards on Auditing and to issue an auditor’s report. However, because of
the matter described in the Basis for Adverse Opinion section of our report, we were not able to
obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the
financial statements.
We are independent of the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the Philippines, and we have fulfilled our
ethical responsibilities in accordance with these requirements.
Report on Other Legal and Regulatory Requirements
Our audit was conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information for the year ended December 31,
2021 required by the Bureau of Internal Revenue is presented for the purposes of additional
analysis and is not a required part of the basic financial statements prepared in accordance with
PFRS. Such supplementary information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, is fairly stated in all material
aspects in relation to the basic financial statements taken as a whole.

Joody S. Catacutan, CPA

The Angel Law Firm
Pampanga, Philippines
January 31, 2022