Img 20200707 0003 PDF
Img 20200707 0003 PDF
Financial Statements
And
. .,li i
As of December 31
2018
Nofes 2019 (As restated)
ASSETS
CURRENT ASSETS
Cash and other cash items 2,3,4 P 5,',190,452 P 57,403,948
Loan and other receivables 2,3, 5 4,299,046 2,954,638
Other current assets 2, 6 37,383,847 5,685,370
Total Current Assets 46,862,346 66,043,955
NONGURRENT ASSETS
lnvestment properties - net 2,3,7 339,336,064 195,015,770
Property and equipment - net 2,3, I 4,776,297
Other noncurrent asset 2,9 5,701,180 5,752,181
Total Noncurrent Assets 349,813,541 200,767,951
CURRENT LIABILITIES
Current liabilities 2,10 P 8,906,790 F 14,911,297
Loans payable - current portion 2, 11 33,974,597 19,201,119
Income tax payable 2, 16
Total Current Liabilities 42,881,396 34,112,406
NONCURRENT LIABILITIES
Loans payable - net of current portion 2, 11 48,009,247 34,713,805
Retirement benefit obligation 2,3,18 3,039,226 573,975
Other liabilities 2, 12 2,995,671 1,172,955
Total Noncurrent Liabilities 54,044,'.143 36,460,735
.;'
EQUITY
Capitalstock 2, 13 301,238,003 '195,000,500
Retirement plan actuarial loss - net 2, 18 (2,996,905) (549,068)
Retained earnings 2,21 1,509,160 1,797,333
Total Equity 299,750,359 196,238,765
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CARD MRI PROPERTY MANAGEMENT, INC.
CARD MRI H lnc.
STATEMENT OF CHANGES IN
(With Comparative Figures for December 31, 201g)
Retirement
Capital Stock Retained plan actuarial
1 loss - net Total
Balance at 1,2019, as restated ? 195,000,500 P
lssuance of stocks
1,797,333 P ? 196,239,764
1 05,000,000 105,000,000
Stock dividends 1,237,503 (1,237,503)
Tota! income for the
Balance at December 31 9 P 301 1 160 r P 299,750,3
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:uN 1 0 2020
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GARD MRI PROPERTY MANAGEMENT, INC.
(Formerly: CARD lvlRl Property Holdings, lnc.)
NOTES TO FINANCIAL STATEMENTS
As ofand Forthe Year Ended December 31, 2019
(With Comparative Figures for December 31, 20'18)
1. Corporate Information
CARD MRI Property Management, lnc. (formerly: CARD MRI Property Holdings, lnc.) (the Company)
was incorporated and duly registered with the Securities and Exchange Commission (SEC) on
November 10, 2016. The Company's primary purposes are to deal and engage in land or real estate
business in all its branches and ramifications, to hold, develop, manage, administer, sell, convey,
encumber, purchase, acquire. rent or othenruise deal in and dispose of, for itself or for others, for profit
and advantage, including hotels, inns or resorts, all adjuncts and accessories thereto, housing projects,
commercial and industrial, urban or other kinds of real property, improved or unimproved, with or to
such persons and entities and under such conditions as may be permitted by law and any and all other
businesses as may be necessary and desirable in connection therewith.
The Company is a member of Center for Agriculture and Rural Development (CARD) - Mutually
Reinforcing lnstitutions (MRl ).
The Company's principal office is located in 20 M. L. Quezon Street, City Subdivision, San Pablo City,
Laguna.
2. Basis of Preparati on, Statement of Compliance, Significant Accounting Policies, and Changes in
Accounting Policies
The significant accounting policies that have been used in the preparation of these financial statements
are summarized below. These policies have been consistently applied to all the years presented, unless
otherwise stated.
The financial statements of the Company have been prepared on a historical cost basis. The financial
statements are presented in Philippine peso, which is the Company's functional and presentation
currency. All amounts are rounded to the nearest peso unless otherwise stated.
The financial statements of the Company have been prepared in compliance with Philippine Financial
Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs). The Company qualifies as
a sME under the criteria set by the Securities and Exchange commission (sEC).
The Company's total assets as of December 31, 2019 exceeded the threshold provided by SEC for the
PFRS for SMEs framework and will be reporting its financiat statements in compliance with full pFRS
framework starting January'1, 2020.
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Page 2 of 21
After initial measurement, receivables are subsequently measured at amortized cost using the
effective interest method, less allowance for credit losses. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees that are an integral part of the
effective interest rate.
After initial measurement, these financial liabilities are subsequently measured at cost less any
allowance for impairment losses.
Where the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, and has neither transferred nor retained substantially all the risks
and rewards of the asset nor transferred control over the asset, the asset is recognized to the extent
of the Company's continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of original carrying amount of the
asset and the maximum amount of consideration that the Company could be required to pay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or
has expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts, is recognized in the statement of
comprehensive income.
The initial cost of investment properties consists of its purchase price, including non-refundable
taxes and any directly attributable costs of bringing the asset to its working condition and location
for its intended use. Expenditures incurred after items of lnvestment properties have been put into
operation, such as repairs and maintenance are normally charged against operations in the period
in which the costs are incurred, ln situations where it can be clearly demonstrated that the
expenditures have resulted in an increase in the future economic benefits expected to be obtained
from the use of an item investment properties beyond its originally assessed standard of
performance, the expenditures are capitalized as an additional cost of lnvestment properties.
Page 4 ot 21
Depreciation is computed using the straight-line method over the estimated useful lives (EUL)
of the
respective assets. Leasehold improvements are amortized over lease term and
the shorter of the
terms of the covering leases and EUL of the improvements.
The depreciation method and the EULs are reviewed periodically to ensure that the period and the
method of depreciation are consistent with the expected paftern of economic benefits from items
of
lnvestment properties.
Fully depreciated assets are retained in the accounts until they are no longer in use
and no further
depreciation is credited against profit or loss.
The carrying values of the lnvestment properties are reviewed for impairment
when events or
changes in circumstances indicate the carrying value may not be recoverable.
lf any such indication
exists and where the carrying values exceed the estimated recoverable amount,
an impairment loss
is recognized under 'Provision for credit and impairment losses' in the statement
of comprehensive
income.
The initial cost of property and equipment comprises its purchase price and any
directly attributable
costs of bringing the asset to its working condition and location for its intended ,.L.
E*p"n.""
incurred after the property and equipment have been put into operation,
such as repairs and
maintenance and overhaul costs, are normally charged to operations in the period
when the costs
are incurred. ln situation where it can be cleady demonstrated that the expenditures
have resulted
in an increase in the future economic benefits expected to be obtained from
the use of an item of
property and equipment beyond its originally assessed standard
of performance, the expenditures
are capitalized as an additional cost of property and equipment.
The useful life and depreciation method are reviewed periodically to ensure
that the period and
method of depreciation are consistent with the expected pattern of economic
benefits from items of
property and equipment.
When assets are sold and retired, their cost and accumulated depreciation
are derecognized from
the accounts, and any gain or loss resulting from their disposal is c'harged
or credited to 6perations.
Any costs of acquiring Company's own shares, if any, are shown as a deduction from equity
attributable to the Company's equity holders until the shares are cancelled or reissued. When such
shares are subsequently sold or reissued, any consideration received, net of directly attributable
incremental transaction costs and the related income tax effects, is included in equity to
the Company's equity holders. "ttribrt"ble
ii. Rentalincome
Receipts from rental of Investment properties are recognized as Rental income.
2.4.9 Leases
The determination of whether an arrangement is (or contains) a lease is based on the
substance of
the arrangement at the inception of the lease, and requires an assessment of whether
the fulfillment
of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset. A reassessment is made after inception of the lease
only if one of
the following applies:
Where a reassessment is made, lease accounting shall commence or cease from the date when
the change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) above, and
at the date of renewal or extension period for scenario (b). The Company offers operaiing lease with
long term period and provide escalation clauses in terms of rental income.
2.4.10lncome Taxes
i. Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets
are
recognized for all deductible temporary differences, carry fonruard benefit of unused tax
credits from
excess of minimum corporate income tax (MCIT) over the regular corporate income tax and
unused
net operating loss carryover (NoLCo), to the extent that it is probable that taxable income
will be
available against which the deductible temporary differences and carry fonryard benefits
of MCIT
and NOLCO could be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected
to apply to the
period when the asset is realized or the liability is settled, based on tax rates
and tax laws that have
been enacted or substantively enacted at the reporting date.
Contingent liabilities are not recognized in the financial statements but are disclosed in
the notes to
financial statements unless the possibility of an outflow of resources embodlng
economic benefits
is remote. Contingent assets are not recognized'in the financial statements but are
disclosed in the
notes to financial statements when the inflow of economic benefits is probable.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.
Service costs which include current service costs, past service costs and gains or losses on non-
routine settlements are recognized as expenses in the statement of comprehensive income. Past
service costs are recognized when plan amendment or curtailment occurs. These amounts are
calculated periodically by independent qualified actuaries.
Net interest on the net defined benefit liability or asset is the change during the period in the net
defined benefit liability or asset that arises from the passage of time which is determined by
applying the discount rate based on government bonds to the net defined benefit liability or asset.
Net interest on the net defined benefit liability or asset is recognized as expense or income in the
statement of comprehensive income.
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in
the effect of the asset ceiling (excluding net interest on defined benefit liability) are recognized
immediately in the statement of financial position with a corresponding debit or credit to 'Retirement
plan actuarial gain (loss) - net ' under the statement of comprehensive income in this period in
which they arise.
Plan assets are assets that are held by a long-term employee benefit fund. Plan assets are not
available to the creditors of the Company, nor can they be paid directly to the Company. Fair value
of plan assets is based on market price information. When no market price is available, the fair
value of plan assets is estimated by discounting expected future cash flows using a discount rate
that reflects both the risk associated with the plan assets and the maturity or expected disposat date
of those assets (or, if they have no maturity, the expected period until the settlement of the related
obligations). lf the fair value of the plan assets is higher than the present value of the defined benefit
obligation, the measurement of the resulting defined benefit asset is limited to the present value of
economic benefits available in the form of refunds from the plan or reductions in future contributions
to the plan.
The key management personnel of the Company and post-emptoyment benefit plans for the benefit
of Company's employees are also considered to be related parties.
The preparation of financial statements in accordance with PFRS for SMEs requires management to
make estimates and assumptions that affect the reported amounts of income, expenses, assets and
Iiabilities, and disclosure of contingent assets and liabilities. Future events may occur which will cause
the assumptions used in arriving at the estimates to change. The effect of any changes in estimates will
be recorded in the financial statements when reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and other
factors, including expectationof future events that are beyond to be reasonable under the
circumstances.
Judoments
Principal versus agent
An entity is acting as principal if individually or in combination of the scenarios below:
a) the entity has the primary responsibility for providing the goods or services to the customer or for
fulfilling the order;
b) the entity has inventory risk before or after the customer order, during shipping or on return;
c) the entity has latitude in establishing prices, either direcfly or indirecfly;
d) the entity the customer's credit risk on the receivable due from the customer.
ln an agency relationship, the gross inflows of economic benefits often include the amounts collected on
behalf of the principal and the amounts which do not result in increase in equity for the entity. The
amounts collected on behalf of the principal are not revenue; instead revenue is the amount of
commission. The Company recognized income from their service operations as commission income
(Note 14).
As of December 31, 2019 and 2018, the Company cannot reasonably estimate available future taxable
income for which the available deferred tax asset can be recovered, and therefore, the Company did
not set up deferred tax asset.
ln determining the appropriate discount rate, management considers the market yields on philippine
government bonds with terms consistent with the expected employee benefit payout
at reporting date,
with extrapolated maturities corresponding to the expected duration of the defined benefit obligation.
Future salary increases are based on expected future inflation rates for the speciflc country.
The
mortality rate is based on publicly available mortality tables for the specific country and
is modified
accordingly with estimates of mortality improvements. The present value of the retirement
liability and
fair value of plan assets are disclosed in Note ,lg.
2019 2018
Cash in banks P 5,190,452 F 57,393,949
Cash on hand and other cash items 10,000 '10,000
P 5,f 90,452 P 57,403,949
Cash in banks represents deposit with a local bank and commercial bank which earns an annual
interest rate of 1.5% in 2019 and 2018.
Other cash items consist of petty cash fund and cheques received and was not deposited
in bank as of
reporting date.
lnterest income earned by the company rro, casrltli bank amounted to ?176,123 and F312,75g,
respectively.
2019 2018
Loan receivable P 2,530,000 P 2,530,000
Accounts receivable 1,009,094 1,900
Accrued rent receivable
738
P 4,298,046 2, 954,638
Page 10 of 21
Loan receivable pertains to receivables from Unihealth that earns 6.00% interest yearly. lnterest
income
eamed related to the loan amounted to F138,283 and P138,283 in 201g and 2Olg, iespectively
(Note
14).
Accounts receivable pertains to receivable from clients. Accrued rent receivable pertains to
receivable
from lessees.
2019 2018
Miscellaneous asset P 31,409,940 F 5,017,560
lnput VAT 3,232,539 568,412
Supplies on hand 2,164,490 12,400
Prepaid taxes
576,989 86,998
p 37,383.847 F
Miscellaneous assets pertains to initial and advance payments for the properties
not yet fully acquired
by the Company at the end of reporting period.
2019
Details of lnvestment Properties at December 31, 201g follow:
Accumulated depreciation
Beginning balance 2,726,519 539,761 3,265,279
Additions 4,71 ,752 15,312
2 9,454,344
Net book value P P 776 ?
Page 11 of 21
2018
Details of lnvestment Properties at December 31, 2018 follow:
Land Construction in
Land Buildinq lmprovement Progress Total
Cost
balance P 96,886,453 F '18,25'1,964 F 1,172,929 F 2,419,643 F 1't8,730,989
Beginning
Additions 28,716,980 26,148,146 - 24,684,935 79,550,060
Transfers - 11,272,930 - (11,272,930) -
Accumulated depreciation
Beginning balance 403,501 147,785 551,286
Additions 2 7 976 71
balance 2, 8
Net book F 1 P1 770
Total rental income received from lnvestment properties amounted to F15,359,742 and F5,890,304 in
2019 and 20'18, respectively.
2019
Details of Property and Equipment are as follows:
2019 2018
Cost
Beginning balance P F
Additions 6,134,190
Endinq balance 6, 1 34.190
Accumulated depreciation
Beginning balance
Additions 1 357 893
Endi balance 1 357 893
book value P 4,776,297 P
ln 2019, the property and equipment account consists of furniture and fixtures purchased by the
Company.
This account consists of deferred input VAT subject to amortization that amounted to P5,701,180 and
?5,752,181as of December 31, 2019 and 2018, respectively.
Page 12 ol 21
1 0. Current Liabilities
2019 2018
Accounts payable P 6,113,479 P 13,381,502
Accrued other expenses 1,336,862 731,780
Unearned rental income 828,793 583,760
Withholding tax payable 605,808 209,676
Employee contributions payable 21,847 4,569
P 8.906,790 P 14,911,287
Accounts payable represents amount payable to land owners, contractors, and suppliers in 2019 and
2018.
2019 2018
Face value
Balance at beginning of year P 54,241,938 F 13,258,400
Availment 46,500,000 50,000,000
Principal payments (18,240,2171 (9,016,462)
Balance at end of year 82,501,721 54,241,938
These are loans payable to Land Bank of the Philippines, CARD MBA, CARD MRI Multi-Employer
Retirement Plan (MERP), and CARD, lnc. with annual interest rate of 5o/o.ln 2019 and 2018, interest
paid on loans payable amounted to P4,565,534 and ?2,714,829, respectively. No debt covenant is
being implemented in relation to the loans availed.
This account consists of security deposits from lessees that amounted to F2,995,671 and ?1,172,955
as of December 31, 2019 and 2018, respectively.
Page 13 of21
13. Equity
CaoitalStock
As of December 31, 2019, the Company's capital stock consists of:
2019 2018
Shares Amount Shares Amount
Common stock - P100 par value
5,000,000 authorized shares
Balance at the beginning of the year 1,950,005 P 195,000,500 1,250,005 P'125,000,500
lssuance of shares of stocks
from settlement of subscription
receivable 1,050,000 105,000,000 700,000 70,000,000
1 1
On June 14, 2019, the Board of Directors approved the stock dividend declaration that amounted to
"'t,237,503.
Caoital Manaqement
The Company's objectives when managing capital are: (a)'to safeguard the Company's ability to
continue as a going concern; (b) to support the Company's stability and growth by maintaining strong
credit ratings and healthy capital ratios; and (c) to provide capital for the purpose of strengthening the
Company's risk management capability to support and sustain its business growth towards maximizing
the shareholder's value.
14. Revenues
2019 2018
Rentalincome (Note 7) P 15,359,742 P 5,890,304
Commission income
Accommodation 9,740,442
Construction and renovation facilitation 5,197,343 3,349,855
Property maintenance 576,127 668,861
Asset and property management 75,614 71,320
Other income:
lnterest income from cash in banks "...,**,! 176,123 312,758
lnterest income from loans 138,283 138,283
Miscellaneous income 27 725 18,857
P 31,281,400 P 10,450,238
Page 14 of 21
15. Expenses
a. Cost of services
Cost of services consist of:
2019 2018
Depreciation expense (Notes 7 and 8) P 6,546,959 F
Rent expense 3,629,95't
Compensation and fringe benefits 2,638,994
Service costs 2,432,026 347,000
Supplies expense 1,013,327
Retirement net of contributions 1 4
P1 347,000
b. Operatinq expenses
Operating expenses consist of:
2019 2018
lnterest expense (Note 11) P 4,565,534 F 2,714,929
Janitorial and messengerial 2,159,031 196,378
Management and professional fees 1,779,557 289,391
Taxes and licenses 1,196,393 129,604
Transportation and travel 1,014,922 396,535
lnsurance expense 438,024 136,420
Depreciation expense (Notes 7 and 8)
2,713,993
Compensation and fringe benefits
742,854
Supplies expense
159,'179
Miscellaneous:
Power, light and water 761,434 38,502
Fines and penalties 266,475
Miscellaneous expense 266,159 15,619
Surveying cost 245,374 85,887
Training and development 191,793 83,918
Communication and postage 161,330 19,801
lnventory write-down 104,725
Repair and maintenance 103,471 71,934
Operating lease 32,100 21,104
lT expenses {5,600 3,065
Periodicals 5,921 1,370
P1 P 7,920,392
:'
", ".Il'tr
a. Applioable Rate
The Company is subject to Regular Corporate lncome Tax (RCIT) rate of 30%.
The Company is not yet
subject to minimum corporate income tax (MCIT), which is compuied at2o/o of gross
income.
c. Reconciliation
Reconciliation between accounting income and taxable income is presented below:
2019 2018
Provision for finaltax F 35,225 F 62,552
Provision for current tax 712,333 585,912
Total P 747,558 F 648,464
Related party relationships exist when one party has the ability to control, direcfly or indirecfly through
one or more intermediaries, the other party or exercise significant influence over the other party in
making financial and operating decisions. This includes: ('1) individual owning, direcfly or indirecly
through one or more intermediaries, control, or are controlled by, or under common control with, the
Company; (2) associates; and (3) individuals owning, directly or indirectly, an interest in the voting
power of the Company that gives them significant influence over the Company and close members of
the family of any such individual.
The Company has several business relationships with related parties. Transactions with such parties
are made in the ordinary course of business and on substantially same terms, including rental,
maintenance and facilitation services, as those prevailing at the time for comparable transactions with
other parties. These transactions also did not involve more than the normal risk of collectability present
or other unfavorable conditions.
b. Rental income. maintenance and facilitation income. accounts receivable. and accounts oavable
The table below shows rental income, maintenance and facilitation income, accounts receivable and
accounts payable held by the Company for other related parties.
31,2019
Outstanding
AmounU Volume Balance Nature, Terms and Conditions
Accounts Receivable P 364,485 These are the facilitation for the construction of
Charges ? 16,239,888 building, building maintenance, aircon cleaning and
Collections 15,875,403 maintenance, asset and property management
Accounts Payable 4,854,006 These pertain to the balance for the purchase of
Charges 11,459,965 property in Gensan and Barleta
Payments 6,605,959
Commission lncome 14,999,945 This pertains to income from overseeing the
construction of buildings, building maintenance, aircon
cleaning and maintenance, asset and property
management
Rental lncome 15,359,742 These are the rental fee for the building
Rental Expense 32,100 This pertains to rental of computer desktop
31 2018
Accounts Receivable 1,900 These are the facilitation for the construction of
Charges 4,888,787 building, building maintenance, aircon cleaning and
Collections 4,900,591 maintenance, asset and property management
Loans Payable 53,914,924 This pertains to loans availed from CARD MERP with
Availment 62,883,400 an interest rate of 5% based on the outstanding
Settlement 8,969,476 balance payable quarterly and loan availed from CARD
lnterest Expense/Payable 2,714,829 lnc. with an interest rate of 5o/o based on the
outstanding loan balance payable monthly
Commission lncome 4,090,036 This pertains to income from overseeing the
construction of buildings, building maintenance, aircon
cleaning and maintenance, asset and property
management
Rental Income 5,890,304 These are the rental fee for the bullding
Rental Expense 21,104 These pertains to rental of computer desktop
The compensation of key management personnel includes all form of consideration paid, payable, or
provided bythe Company. This amounted to?562,492 and F0 (nil)in 2019 and 2018, respectively.
Page 17 ol 21
The Company, CARD, lnc., CARD Bank, Inc., CARD SME Bank, lnc., CARD MRI Rizal Bank, Inc.,
CARD MRI Development Institute, lnc., CARD Mutual Benefit Association, lnc., CARD MRI lnsurance
Agency, CARD MRI lnformation Technology, lnc., CARD Employees Multi-Purpose Cooperative,
Responsible lnvestments for Solidarity and Empowerment Financing Co., BotiCARD, lnc., CARD
Leasing and Finance Corporation, CARD-Business Development Service Foundation, lnc., Mga Likha
ni lnay, lnc., CARD MRI Hijos Tours, lnc., and CARD MRI Publishing House, lnc. maintain a funded and
formal noncontributory defined benefit retirement plan - the MERP - covering all of their regular
employees and CARD Group Employees' Retirement Plan (Hybrid Plan) applicable to employees hired
on orafterJuly 1,2017. MERP is valued using the projected unitcost method and isfinanced solelyby
the Group and its related parties.
MERP comply with the requirements of Republic Act No. 7641 (Retirement Law). MERP provides lump
sum benefits equivalent to up to 120% of final salary for every year o'f credited service, a fraction of at
least six (6) months being considered as one whole year, upon retirement, death, total and permanent
disability, or voluntary separation after completion of at least one year of service with the participating
companies.
Hybrid Plan provides a retirement benefit equal to 100.00% of the member's employer accumulated
value (the Bank's contributions of 8.0% plan salary to Fund A ptus credited earnings) and 100.0% of the
Member's Employee accumulated value (member's own contributions up to 10.0% of plan salary to
Fund B plus credited earnings), if any. Provided that in no case shall 100.0% of the Employee
Accumulated Value in Fund A be less than 100.0% of plan salary for every year of credited service.
The latest actuarial valuation report covers reporting period as of December 31 , 2}'lg and 2018.
2019 2018
Balance at the beginning of the year P (578,896) P
Current service cost (44,459) (29,799)
lnterest expense (32,664)
Transfer to the Plan (764,466)
Actuarialloss 71
Balance at vear F (3,837.634) P (57 8,896
2019 2018
Balance at the beginning of the year P 4,921 P
lnterest income ' ".lrt
30,939
Transfer to the Plan 764,466
Contributions 28,771 4,892
Return on assets 29
Balance at the of the year P 798,408 F 4,921
2019 2018
lnterest income P 30,838 P
Remeasurement gain (loss) (30,588) 29
Actual return P 250 F 29
Page 18 of21
2019 2018
Fair value of plan assets F 798,408 P 4,921
Present value of defined benefit obligation (3,837,634) (578,896)
Effect of asset ceil
P F
2019 2018
Current service cost P 32,664 P 29,799
Net interest 13,621
P 46,285 F 29,799
2019 2018
Cumulative loss in OCl, beginning P 549,069 P
Actuarialloss 2,417,149 549,097
Remeasurement (gain) loss - plan assets 30,588 (2e)
F 2,996,805 P 549,068
2019 2018
Balance at the beginning of the year P 573,975 P
Retirement expense recognized in P&L 46,285 29,799
Retirement expense recognized in OCI 2,47,737 549,068
Contributions (28,7711 (4,892)
Balance at the end of the year P 3,039,226 P 573,975
Cash and cash equivalents are deposited in reputable financial institutions and related parties and are
deemed to be standard grade. The overall investment policy and strategy of the Company's defined
benefit plans is guided by the objective of achieving an investment return which, together with
contributions, ensures that there will be sufficient assets to pay pension benefits as they fall due while
also mitigating the various risk of the plans.
Page 19 of 21
2019 2018
Discount rate
5.38% 7.68%
Salary increase rate
5.00% 5.00%
19. Leases
2019 2018
Within one year ?' 2,263,597 P
Within the second year but less than 3 years
2,579,203
More than 3 years but less than 5 years
P1 P
20 . Financial Instruments
2019 2018
Carrying Fair Carrying Value
Financial assets: Fair Value
Cash on hand and in banks P 5,190,452 P 5,190,452 F 57,403,948 F 57,40s,948
Loan other
638 41 781 8
Financial liabilities:
Current liabilities F 6,942,272 ? 6,942,272 P 14,381,995 F 14,381,995
Loans payable 81,993,943 81,993,943 53,914,924 53,914,924
Other
1 955
Page 20 of 21
since December 31,2019, the spread of coVlD-19 has severely impacted many local economies
around the globe' ln many countries' businesses are being
forced t,o cease or limit operations for long
or indefinite periods of time. Measures taken to contain the
spread of the virus, including travel bans,
quarantines' social distancing, and closures of non-essential services have triggered significant
disruptions to businesses worldwide, resulting in an economic
slowdown. Global stock markets have
also experienced great volatility and a significant weakening,
Governments and central banks have
responded with monetary and fiscal interventions to stabilize
economic conditions.
Following is the required information under RR 15-2010 for the year ended December 31 , 201 g:
a. Value-added tax
The Company has VATable sales for the year ended December 31 , 2019 that amounted to
?3A,866,514.
The work fonrrard analysis of the Company's lnput VAT for its VATable purchases is as follows:
c, Withholdinq Taxes
The amount of withholding taxes paid/accrued for the year ended December 31, 2o1g:
Paid Payable
Tax on compensation and benefits P 77,019 P 4'1,590
with tax 1 186,340 1
F ,263,358 F 176,4s0