STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR ANNUAL INCOME TAX RETURN

The Management of CLMB FOOD CORPORATION is responsible for all information and representations contained
in the Annual Income Tax Return for the year ended December 31, 2022. Management is likewise responsible for all
information and representations contained in the financial statements accompanying the Annual Income Tax Return
covering the same reporting period. Furthermore, the Management is responsible for all information and representations
contained in all the other tax returns filed for the reporting period, including, but not limited, to the value added tax
withholding tax returns, documentary stamp tax returns, and any and all other tax returns.

In this regard, the Management affirms that the attached audited financial statements for the year ended December 31,
2022 and the accompanying Annual Income Tax Return are in accordance with the books and records. of CLMB FOOD
CORPORATION complete and correct in all material respects. Management likewise affirms that:

a. The Annual Income Tax Return has been prepared in accordance with the provisions of the National
Internal Revenue Code, as amended, and pertinent tax regulations and other issuances of the
Department of Finance and the Bureau of Internal Revenue;
b. Any disparity of figures in the submitted reports arising from the preparation of financial statements
pursuant to financial accounting standards and the preparation of the income tax return pursuant to tax
accounting rules has been reported as reconciling items and maintained in the company's books and
records in accordance with the requirements of Revenue Regulations No. 8-2007 and other relevant
issuances;
c. That CLMB FOOD CORPORATION has filed all applicable tax returns, reports and statements
required to be filed under Philippine tax laws for the reporting period, and all taxes and other
impositions shown thereon to be due and payable have been paid for the reporting period, except
those contested in good faith

CARLO LORENZO M. BALTONADO

Chairman of the Board

CARLO LORENZO M. BALTONADO

President

VIOLETA M. BALTONADO
Treasurer
CLMB FOOD CORPORATION
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2021
Amounts in Philippine Peso

1. GENERAL INFORMATION
CLMB FOOD CORPORATION, a corporation duly organized under Philippine law and registered with the
Securities and Exchange Commission on June 2, 2021 with Registration No. 2021060015540-01. The company
is registered with the Bureau of
Internal Revenue on June 2, 2021 with Tax Identification Number 779-265-537-000.

The primary purpose for which corporation was established is to operate and maintain restaurants, coffee
shops, and refreshment parlors; to serve, arrange and cater foods, drinks, refreshment, and other foods or
commodities; to offer such service to the public; and to do and perform such other acts and things necessary or
incidental to the accomplishments of the foregoing corporate business and objects insofar as may be allowed by
the applicable laws and rules and regulations.

The company is registered and domiciled in the Philippines. The registered office and principal place of
business of the corporation is located at 184 London St., Doña Feliza Mejia, Ormoc City.

CLMB Food Corporation is a non-public accountable entity and its stocks are not traded in the stock exchange.

All shares of the company are common shares and there is one (1) shareholder owning more than One Hundred
(100) shares.

The company adopts a calendar year of reporting ending December 31. The financial statements as of
December 31, 2021 have been approved and authorized for issue by the board of directors on April 15, 2023.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set below. These
policies have been constantly applied to all the years presented unless otherwise stated.

2.1 Basis of Preparation

The Financial Statements of the company starting as at and for the year ended December 31, 2021 have
been prepared in accordance with the Philippine Financial Reporting Standards for Small Entities (PFRS
for SE's) as approved by the Financial Reporting Standards Council, Board of Accountancy, and Securities
and Exchange Commission.
 The financial statements have been prepared using the on a historical cost basis, except for investment
property that has been measured at fair value.

The company adopts the Framework on the effective date January 1, 2019, as mandated by the existing
rules and regulations. The opening statements of the current reporting period were restated to conform to
the standards of the new reporting framework. An explanation of the changes due to remeasurements
brought by the transitioning to the new reporting framework is presented in the Notes to the Financial
Statements.

2.2 Functional and Presentation Currency

Items included in the financial statements of the company are measured using the currency of the primary
economic environment in which the entity operates (the "functional currency"). The financial statements
are presented in Philippine Peso (PHP), which is the Company's functional and presentation currency.

2.3 Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. A financial instrument is recognized when the entity becomes a
party to its contractual provisions. The company classifies its financial instruments as (a) basic financial
instruments; and (b) complex financial instruments.

The company's basic financial instruments consist of cash and cash equivalents, trade and other
receivables, borrowings, trade and other payables. The company does not have complex financial
instruments.
2.4 Basic financial instruments

Initial Measurement
On initial recognition, a debt financial instrument is measured at transaction price (including transaction
costs), unless the arrangement is in effect a financing transaction. In this case, it is measured at present
value of the future payment discounted using a market rate of interest for a similar debt instrument.

Subsequent Measurement
The company's debt financial instruments are subsequently measured at amortized cost using the effective
interest method.

Impairment of Financial Instruments Measured at Amortized Cost

At each reporting date, the Group assesses whether there is objective evidence of impairment on any
financial assets that are measured at amortized cost. Where there is any objective evidence of impairment,
an impairment loss is recognized immediately in profit or loss. The impairment loss is the difference
 between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's
original effective interest rate.

Derecognition of Financial Assets

An entity only derecognizes a financial asset when the contractual rights to the cash flows from the assets
have expired or are settled, or the entity has transferred to another party substantially all the risks and
rewards of ownership relating to the financial asset.

Derecognition of Financial Liabilities

Financial liabilities are derecognized only when these are extinguished that is, when the obligation is
discharged, cancelled or has expired.

2.5 Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits and other short-term highly liquid
investments with original maturities of three months or less.

2.6 Trade Receivables

Trade receivables are recognized initially at the transaction price. They are subsequently measured at
amortized cost using the effective interest method. A provision for impairment of trade receivables is
established when there is objective evidence that the company will not be able to collect all amounts due
according to the original terms of the receivables.

2.7 Inventories
Inventories are stated at the lower of cost or market value (L.e., the probable selling price to willing buyers
as at the reporting date). Cost is determined using the first-in, first-out (FIFO) method.

2.8 Other Current Assets

Other current assets include prepayments such as prepaid taxes, input taxes, and other expenses incurred
which will benefit future periods. These are initially valued at transaction cost and subsequently measured
at cost less impairment, if any.

2.9 Property, Plant and Equipment

Property, plant and equipment are stated using the cost model which is at historical cost less accumulated
depreciation and any accumulated impairment losses.
 Land is not depreciated. Depreciation on other classes of property, plant and equipment is charged so as to
allocate cost of assets less their residual values over their estimated useful lives, using the straight- line
method. The estimated useful lives of the company's depreciable assets are as follows:

BUILDINGS 25 years
KITCHEN EQUIPMENTS 10 years
KITCHENWARES AND CUTLERIES 10 Years
TRANSPORTATION EQUIPMENTS 10 years
FURNITURE AND FIXTURES 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively
if appropriate, if there is an indication of a significant change since the last reporting date.

2.10Investment Property
Investment property is initially recognized at cost. Subsequently, investment property is carried at fair
value with changes in fair value recognized in profit or loss.

2.11Intangible Assets
Intangible assets are carried at cost less accumulated amortization and any impairment losses.
Amortization is calculated using the straight-line method over the estimated useful life of ten years for
trademarks and three to five years for computer software.

2.12Impairment of Assets Other Than Inventories

Assets such as property, plant and equipment, investment property, Intangible assets and investment in an
associate are assessed at each reporting date to determine whether there is any indication that the assets are
impaired. When an impairment indicator is identified, the carrying value of the asset is tested for
impairment.

An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and
value in use. If the recoverable amount cannot be estimated for an individual asset, the company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. A cash- generating unit is
the smallest identifiable group of assets that generates cash inflows that are independent of the cash flows
from other assets within the company.

If an impairment indicator no longer exists or the recoverable amount has increased subsequently, the
Group will determine the amount of impairment loss that can be reversed to the extent that the reversal
 should not result in a carrying amount of the asset that is higher had no impairment loss was recognized in
the prior years.

2.13Trade and Other Payables

Trade and other payables are recognized initially at the transaction price and subsequently measured at
amortized cost using the effective interest method.

Trade and other payables are liabilities to pay for goods or services that have been received or supplied
and have been invoiced or formally agreed with the supplier.

Accrued Expenses represents expenses incurred for the period, but not yet paid as at the reporting date.

Payables are derecognized from the statement of financial position only when the obligations are
extinguished either through discharge, cancellation or expiration.
Other payables include payables to affiliates, professional fees, accrued expenses, and other statutory
obligations to the government.

2.14Provisions
Provisions are recognized when: the company has an obligation as a result of a past event; it is probable
that a transfer of economic benefits will be required to settle the obligation; and the amount can be reliably
estimated. Provisions are not recognized for future operating losses.

When the effect of time value is material, provisions are measured at the present value of the amount
expected to be required to settle the obligation using a pre-tax rate(s) that reflect(s) current market
assessments of the time value of money and the risks specific to the obligation. Changes in the provisions
due to passage of time are recognized in profit or loss.

2.15Retirement Benefits
The company is yet to establish and a formal retirement plan for its employees. Thus, the company's
retirement benefit obligation is measured using the accrual approach based on the minimum retirement
benefits required under Republic Act (RA) No. 7641, otherwise known as The Philippine Retirement Pay
Law. Accrual approach is applied by calculating the expected liability as at reporting date using the current
salary of the entitled employees and the employees' years of service, without consideration of future
changes in salary rates and service periods.

2.16Equity
(a) Share Capital and additional paid-in capital
Share Capital is measured at par value for all shares issued. Any amount received by the Company in
excess of par value of its share is credited to additional paid-in capital. Incremental costs directly
 attributable to the issuance of new shares are shown in equity as a deduction from proceeds, net of
tax.

(b) Retained earnings

Retained earnings consist of accumulated profits less any amount distributed to the shareholders.

(c) Cash dividend distribution

Cash dividends to shareholders are recognized as a liability and deducted from equity when approved
by the Company's Board of Directors.

2.17Revenue Recognition
Revenue is measured as the fair value of the consideration received or receivable, excluding discounts,
returns and value-added tax.
The company recognizes revenue to the extent that it is probable that future economic benefits will flow to
the entity and that the amount of revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognized:

Sale of Goods
Sales of goods are recognized as revenue when the company has delivered the products to the customer
and there is no unfulfilled obligation that could affect the customer's acceptance of the products.

Rendering of Services
Service income is recognized upon rendering of professional service to the customer.

Interest Income
Interest income is recognized using the effective interest method. Interest income is included in 'other
income' account in the statement of income.

Rental Income
Rental receipts from investment property that is leased to a third party is recognized as income in the profit
or loss in the period in which they are earned. Rental income is included in 'other income account in the
consolidated statement of income.

2.18Income Tax Expense

The company uses the taxes payable method to account for income taxes. Under this method, the company
recognizes income tax expense and liability based on the taxable income for the year using tax rates that
have been enacted or substantively enacted at the reporting date.
 2.19Leases
The company leases certain items of property, plant and equipment. Payments made under leases (net of
any incentives received from the lessor) are charged to profit or loss when incurred.

2.20Events After the Reporting Date

Post year-end events that provide additional information about the company's position at the reporting date
(adjusting events) are reflected in the financial statements. Post year-end events that are not adjusting
events are disclosed in the notes to the financial statements when material.

3. CASH AND CASH EQUIVALENTS

Includes cash on hand and cash in bank unrestricted as to use.

Cash and Cash Equivalents 2022

Petty Cash Fund -

4. Cash on Hand - SHAREHOLDERS'

EQUITY
All shares are Cash in Bank 2,475,435.00 common shares as of
December 31, 2021, the corporation has
TOTAL 2,475,435.00
two (2) shareholders, one (1) of
which is owning more than 100 shares.

SHAREHOLDER'S EQUITY
   
COMMON SHARES Par Amount
Authorized Share Capital, June 20, 2018  
5. GENERAL AND
100,000 shs, par value P100.00 10,000,000.00
ADMINISTRATIVE
EXPENSES Authorized Share Capital 10,000,000.00
100,000 shs, par value P100.00   Administrative
Expenses are     recognized in the
statements of   2022 income upon incurring
the expenses. Subscribed Share Capital  
Year 2018 25,000 shs, par value P100 2,500,000.00
Subscriptions
GENERALReceivable
AND ADMINISTRATIVE EXPENSES -
      2021
Common Shares Issued and Outstanding 2,500,000.00
Taxes and Licenses 3,095.00

TOTAL 3,095.00
6. SUPPLEMENTAL INFORMATION REQUIRED UNDER RR 15-2010
The Bureau of Internal Revenue (BIR) issued on November 25, 2010 Revenue Regulations (RR) 15-2010
amending certain provisions of Revenue Regulations No. 21-002, as amended, implementing Section 6(H) of
the tax code of 1997, authorizing the Commissioner of Internal Revenue to prescribe additional procedural and/
or documentary requirements in connection with the preparation and submission of financial statements
accompanying income tax returns. Under the said RR companies are required to provide in addition to the
disclosures mandated under PFRS, and such other standards and or conventions as may be adopted in the notes
to the financial statements, information on taxes, duties and licenses fees paid or accrued during the taxable
year.

i) OUTPUT VALUE-ADDED TAX

Output VAT declared and the revenues upon which the same is based as at December 31, 2022
consist of:

OUTPUT VALUE-ADDED TAX Gross Amount of Reserves Output VAT

Subject to 12% VAT - -

Sale of Goods - -

Sale to Government - -

Sale to Services - -

Zero-Rated Sales - -

Exempt Sales - -

Total - -

ii) INPUT VALUE-ADDED TAX

Movements for input VAT for the year ended December 31, 2022 follow:

INPUT VALUE-ADDED TAX

Beginning Balance
 -

Add: Curent year's domestic payments for: -

Goods for reseal/manufacture or further processing -

Goods other than for resale/manufacture -

Capital Goods subject to amortization -

Capital Goods not subject to amortization -

Services lodged under cost of goods sold -

Services lodged under other accounts -

Deduct: Claims for Tax credit/refund -

Total Input VAT -

5% Final Withholding VAT against sale to government  

TOTAL INPUT VAT -

iii) ALL OTHER LOCAL AND NATIONAL TAXES

All other local and national taxes accrued and paid for the year ended December 31, 2022 consist of:

ALL OTHER LOCAL AND NATIONAL TAXES

   
Local Taxes  

Municipal/Mayor's Permits 2,565.00

Real Property Taxes -
National Taxes  
iv) The company did
Annual Registration Fee 500.00
not have any
Documentary Stamp Tax 30.00 transactions
involving
Other Fees and Licenses (SEC Registration Fees) -
import and
Total 3,095.00 customs
duties for the
year ended December 31, 2022.
v) The company did not have any transactions subject to excise taxes for the year ended December 31,
2022.
vi) There are no deficiency tax assessments paid for during the year ended December 31, 2022.
vii) The company has no tax cases under preliminary investigation and/ or prosecutions in courts or
bodies outside of the BIR.
viii) The company has no transaction resulting to any monetary obligations pertaining to withholding taxes
for compensation, expanded, and final taxes for the period ending December 31, 2022.

7. INCOME TAX COMPUTATION

The corporation is incorporated in June of 2018. The MCIT is not yet applicable until the start of the 4th year
following the year of commencement of operations.

INCOME TAX COMPUTATION

       
      2022
Net Income Before Income Tax     (3,095.00)
Total Taxable Income     (3,095.00)
8. NET Regular Tax Rate     -
Normal Income Tax     -
       
Gross Income     -
MCIT Rate     0.00%
Minimum Corporate Income Tax      
       
Income Tax Expense-Current Period     -
Less: Previous Quarter Payments     -
Less: Creditable Withholding Taxes     -
Less: Previous Year's MCIT Paid     -
Less: Previous Year's Overpayment     -
Income Tax Payable (Excess)     -
OPERATING LOSS CARRY-OVER
As of December 31, 2022, the company has Net Operating Loss Carry-over (NOLCO) which can be claimed as
additional allowable deduction from taxable income for the next three years (2020 and 2021 NOLCO is
allowed to be carried in the next 5 years as provided by the Bayanihan Act) since the incurrence of the
operating loss. Details of NOLCO are presented below: