Board of Directors

Grace Corporation
12 Ninoy, Avenue, Paranaque City Philippines

To the Board of Directors

You authorized us to conduct an audit of Grace Corporation's financial statements,
which consist of a statement of financial position as of December 31, 2017, an income
statement, a statement of changes in equity, a cash flow statement, an overview of key
accounting policies, and other explanatory data. With this letter, we are grateful to
explicitly reaffirm our understanding of and acceptance of the audit engagement. In
order for us to provide an opinion on the financial statement, our audit will be performed
out.
Responsibilities
The Philippine Standards on Auditing shall be followed when we conduct our audit.
According to those criteria, we must follow ethical guidelines, plan and carry out the
audit to get a reasonable level of assurance that the financial statements are accurate
and free from material misstatement. Performing procedures chosen based on the
auditor's judgment, including the evaluation of the risk of a major misstatement of the
financial statement, whether due to fraud or error, is part of an audit. Aside from
assessing the overall presentation of the financial statement, an audit also entails
assessing the validity of the accounting policies followed and the reasonableness of
management's accounting estimates.

We consider internal control relevant to the entity's preparation of financial statements in

order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the entity's internal control's effectiveness. We
will, however, notify you in writing of any significant deficiencies in internal control
related to the audit of the financial statements that we discovered during the audit.

Regardless of whether the audit is correctly planned and carried out in accordance with
PSA's, there is a foreseeable danger that some significant misstatements may not be
recognized due to the inherent constraints of an audit and their internal control.
We consider internal control relevant to the entity's preparation of financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the entity's internal control's effectiveness. We
will, however, notify you in writing of whatever significant internal control deficiencies
related to the audit of the financial statements that we encountered during the audit.

The Management Responsibilities

Our audit will be performed on the assumption that management and those implicated
in governance recognize and comprehend their responsibilities.

 In charge of preparing and accurately presenting financial statements in

accordance with Philippine Financial Reporting Standards.
 For certain internal control as management deems necessary to allow the
preparation of financial statements free of material misstatement, whether due to
fraud or error, and
 to provide;
1. Access to all source of illumination, including records, documents, and other
items, that is necessary for the creation of the financial statements.
2.Extra information that we could ask you for to complete the audit, including
3.Unrestricted access to business professionals who we believe to be necessary
to contact in order to compile audit evidence.

As part of our audit process, we will actively sought written confirmation from
management and, where appropriate, those charged with governance pertaining
representations made to us in connection with the audit.

We foresee full cooperation from your staff during our audit.

Fees

Our fees, which are determined by the amount of time necessary by the people
assigned to the engagement, will be billed as work is completed and will be 80,000 plus
out-of-pocket costs. Depending on the level of responsibility, experience, and ability
needed, individual hourly rates change.
Unless it is cancelled, modified, or suspended, this letter will be in force for all
subsequent periods.

To ensure that your knowledge of the arrangement for our audit of the financial
statement is appropriate, kindly acknowledge and return the copy of this letter that is
attached.

Yours Truly, Acknowledge on behalf of Grace Corporation by

X X

Roces Adriano, CPA

Roces Adriano Sales, CPA’s