CAPITAL CONTRIBU

MABUHAY COATINGS LTD.

STOCKHOLDER TIN
Pete Eleazar 481-240-058-000
Cindy Eleazar 022-513-477-000
Red Cordero 173-180-296-000
Jay Melchor 362-436-140-000
Mike Belen 097-052-450-000
Kathleen Dy 276-816-381-000
Geli Eleazar 009-325-749-000
Jaden Eleazar 105-660-387-000
NTRIBUTION
OATINGS LTD.

CAPITAL CONTRIBUTION % OF OWNERSHIP

36,180,694.00 36%
17,085,328.00 17%
5,025,096.00 5%
2,010,039.00 2%
4,020,077.00 4%
3,015,058.00 3%
13,065,251.00 13%
20,100,386.00 20%
100,501,929.00
 BALANCE SHEET
MABUHAY COATINGS LTD.
12/31/2018

Current Assets PHP 291,066,505.00

Long- Term Investment 680,000.00
Property, Plant and Equipment 2,598,482,218.00
Long- Term Receivables 140,210,190.00
Intangible Assets 6,943,023.00
Other Assets 134,215,506.00
Total Assets 3,171,597,442.00

Current Liabilities 594,887,343.00

Long- Term Liabilities 700,755,368.00
Deferred Credits 865,809,725.00
Other Liabilities 908,835,394.00
Total Liabilities 3,070,287,830.00

Capital stock 92,128,700.00

Additional Paid-In Capital 8,373,229.00
Retained Earnings 807,683.00
Total Equity 101,309,612.00

Total Liabilities and Equity PHP ₱ 3,171,597,442.00

Pretax Accounting Income: 71,016,063.00
Add/Deduct: Permanent Differences
Add: Non Deductible Expenses

Janitorial Services 6,434,799.00

Advertising 6,143,440.00
Repairs and Maintenance Labor 1,223,456.00
Repairs andMaintenance - Materials 5,600,270.00
Fuel and Oil 5,220,990.00
Security Services 10,132,357.00
Representation and Entertainment 1,510,732.00
Taxes and Licenses 20,417,500.00
Total Non Deductible Expenses 56,683,544.00

Less: Non Taxable Income

Interest Income Subject to Final Tax 8,500,000.00

Royalties subjected to final tax 5,661,784.00
Gain on Sale Subject to CGT 1,250,000.00
Reversal of Bad debts not claimed as deduction 250,000.00
Dividend received from PLDT 17,213,965.00
Total Non Taxable Income (32,875,749.00)
Corporate Tax Rate
Accounting Income Subject to Tax 94,823,858.00 30%

Add/Deduct: Temporary Differences

Future Deductible Differences

Rent Payable 192,300.00
Accrual contribution to retirement Fund 3,500,000.00
Provision for Doubtful Acounts 5,286,799.00
Provision for Inventory Losses 1,600,261.00
Unrealized Foreign Exchange Losses 2,162,961.00
Total Future Deductible Difference 12,742,321.00 30%

Current Taxable Income 107,566,179.00

Adjusting Entries

Current Tax Expense

DTL
Income Tax Payable
 28,447,157.40 Total Income Tax Expense

3,822,696.30 Deffered Tax Liability

32,269,853.70 Current Tax Expense

DR CR
32,269,853.70
3,822,696.30
Income Tax Payable 28,447,157.40
Computation of Taxable Income Computation of OSD

Sales 1,421,093,918.00
Less: Cost of Services (742,015,461.00) Less

Gross Income 679,078,457.00

Less: Deductions: (614,618,847.00) Add:

Net Income 64,459,610.00

Add: Other Income Subject to Income Tax 43,106,569.00 Less:

Taxable Income 107,566,179.00

Corporate Tax Rate 30%

Tax Due 32,269,854

Computation of OSD

Sales 1,421,093,918
Cost of Services (742,015,461)

Gross Income 679,078,457

Other Income Subject to Tax 43,106,569

Total Gross Income 722,185,026

Deductions (40% of Total Gross Income) - 288,874,010

Taxable Income 433,311,016

Corporate Tax Rate 30%

Tax Due 129,993,305

 Total Allowable Itemized Deductions
MABUHAY COATINGS LTD.
12/31/2018

EXPENSES PAYEE REFERERENCE (OR NO.) AMOUNT Limit Non-Deductible Deductible Remarks
Salaries and Allowances 102,042,177.00 102,042,177.00
Rent Expense Amor Leasing Co. 00765 1,692,300.00 192,300.00 1,500,000.00 Deffered tax Liability
Professional fees Wescare Professional Services 00123 9,103,819.00
Chichi, Gigi & Co. 001456 13,655,730.00 27,311,459.00
JP Law Firm 00011 4,551,910.00
Management & Consultancy Fee ECG Consultancy 020765 28,279,982.00
70,699,954.00
RSA Management Consultancy, Inc. 021144 42,419,972.00
Janitorial & Messengerial Services Lolaby Becks Janitorial Services 000290 6,434,799.00 6,434,799.00 Name was M LTD instead of Mabuhay Coatings LTD. TIN was correct.
Msg R'Us Corporation 009991 4,713,552.00 14,140,656.00
Sweep away Janitorial Services 000765 9,427,104.00
Other Outside Services ARF General Services 03789 4,802,781.00
RX All you Need Inc. 47435 3,201,854.00 8,004,635.00
Advertising Kristani Advertising Inc. 0056EDK 6,143,440.00 6,143,440.00 Name was Coating LTD. Tin was Correct
MBKK Broadsheet Corporation 000333 1,433,123.00
LKG Advertising 004444 5,732,490.00
Summermedia Corporation 00409 2,866,245.00 10,031,858.00
Repairs and Maintenance - Labor Lalala repairs and Maintenance 00919 14,123,367.00
Kukas Unlimited Repairs 00676 1,223,456.00 1,223,456.00 14,123,367.00 Name was MC Corp. Tin was Correct
Repairs and Maintenance - Materials/Supplies Lalala repairs and Maintenance 00919 28,460,027.00
Kukas Unlimited Repairs 00676 5,600,270.00 5,600,270.00 28,460,027.00 Name was MC Corp. Tin was Correct
Office Supplies Jamich Bookstore 03309 14,550,010.00
Coco Supplies and Paraphernalia 03319 7,275,005.00 21,825,015.00
Insurance Lifesaver Inc 10767 8,606,983.00
Lifesaver Inc 10801 8,606,982.00 17,213,965.00
Transportaion and Travel Broom Broom Car Services 484388 277,393.00
Holmes Lodging, Inc 73821 462,322.00
SVPAM Tours 008826 184,928.00 924,643.00
Fuel and Oil Mumbai Fuels and Oil Inc 007899 5,220,900.00 5,220,990.00 Name was Mabuhay Corp and TIN was not the same
Villarias Fuel Station 009843 2,120,914.00
Sea Shell Corporation 00898 1,413,943.00 3,534,767.00
Communication, Light and Water Bigay Liwanag 04343 13,253,036.00
Namasa Waters 000137 11,044,197.00
KKK Telecoms 000143 8,835,357.00 33,132,590.00
Miscellaneous Expenses Bank Charges 3,258,760.00
Postage and Stamps 175,650.00
Courier Services At your Service Inc 0329 921,960.00
Send and Receive Corporation 2327 1,843,920.00 9,358,837.00
Outside Printing Services Telias Printers & Scanners 2390 1,365,244.00
Outsource Trainings Training Solutions 02238 1,075,982.00
Just What you need Corporation 05547 717,321.00
Operating Expenses 65,328,986.00 65,328,986.00
Security Services KKB Security Services Inc 06545 5,000,000.00
KKB Security Services Inc 06789 3,632,357.00 3,632,357.00 No proof of witholding taxes, No withholding, no deduction
SIA Security Services Inc. 06545 6,500,000.00 6,500,000.00 5,000,000.00 Name was Mabuhay Security group and Tin was different.
Representation and Entertainment SSS Country Club 64332 300,000.00 300,000.00 Name under employee
Fun World Manila 747092 9,133,003.00 14,210,939.18 1,010,731.82 Limit was 1% of net sales
14,210,939.18
BBM Sports and Country Club 8732 6,088,668.00
Cherrymike Lover's Resto 200,000.00 200,000.00 Not supported by OR
Interest on Bank Loans 52,500,000.00 52,500,000.00
Taxes and Licenses Payment of Deficiency Income Tax 15,000,000.00 15,000,000.00 Not Claimable as deduction
Capital Gains Tax on Sale of Properties 180,000.00 180,000.00 Not Claimable as deduction
CGT on Sale of Shares of Stocks 37,500.00 37,500.00 Not Claimable as deduction
Other Percentage Tax on Sale of Stocks 3,000.00
Payment of Surcharges 3,750,000.00 3,750,000.00 Not Claimable as deduction
Payment of Interest on deficiency 1,250,000.00 1,250,000.00 Not Claimable as deduction
Payment of Compromise Penalties 200,000.00 200,000.00 Not Claimable as deduction
Business Taxes and Licenses 17,800,000.00 17,803,000.00
Losses Casualty Loss 5,387,822.00 2,358,226.00 Insurance proceeds on casualty losses should be netted against loss
Provision for Inventory Losses 1,600,261.00 1,600,261.00 3,029,596.00 DTL/ Provision only
Provision for Doubtful Accounts 5,661,784.00 5,286,799.00 374,985.00 DTL/Actual Writeoff
Charitable Donations Department of Science and Technology 02075 25,500.00
Philippine Sports Commission 00043 48,750.00
200,500.00
National Council for Culture and Arts 00065 75,750.00
Bantay Kalikasan 50,500.00
Pension Trust 300,900.00 300,900.00
Accrual Contribution To retirement Fund 1,000,000.00 1,000,000.00 - DTL
Amortization of Goodwill 16,278,328.00 16,278,328.00
Depreciation of appraisal increase - Fixed Asset 300,000.00 300,000.00
Loss on Write off of Obsolete Inventories 8,001,407.00 8,001,407.00
Accounts Receivable Write off -
Depreciation 68,986,256.00 68,986,256.00
Total 681,739,977.00 67,121,129.82 614,618,847.18
681,739,977.00
-
 INCOME STATEMENT
MABUHAY COATINGS LTD.
12/31/2018

Sales
Sales Discount
Net Sales

Purchase of raw materials and supplies

Factory rental
Direct Charges- Salaries, Wages and Benefits
Direct Charges- Depreciation
Direct Charges- Outside Services
Direct Charges- Others
Total Cost of Sales

Gross Income

Deductions
Salaries and Allowances
Rent
Professional Fees
Management and Consultancy Fee
Janitorial and Messengerial Services
Other Outside Services
advertising
Repairs and Maintenance- Labor
Repairs and Maintenance- Materials/ Supplies
Office Supplies
Insurance
Transportation and Travel
Fuel and Oil
Communication, Light and Water
Miscellaneous
Other Operating Expenses
Security Services
Representation and Entertainment
Interest Expense on bank loans
Taxes and Licenses
Losses
 Provision for Doubtful Accounts
Depreciation
Charitable Contribuions
Pension Trusts
Accrual of contributions to retirement fund
Amortization of goodwill
Depreciation of appraisal increase- fixed assets
Loss on write- off of obselete inventories
Total Operating Expenses

Other Income/(Expense)
Realized foreign exchange gain
Dividends from PLDT
Foreign Exchange Gain resulting from offsetting of accounts
Gain on sale of real properties subjected to capital gains tax (CGT)
Gain on sale of shares of stock subjected to CGT
Gain on sale of shares of stock subjected to other percentage tax (OPT)
Reversal of prior year provision for bad debts due to over recording in prior year
(not claimed as deduction in previous year)
Interest Income
Share in equity earnings of Mabuhay Services, Inc
Royalties already subjected to 20% FWT
Insurance proceeds on casualty losses
Unrealized foreign exchange loss
Total Other Income/(Expense)

Net income before income tax

Less: Provision for Income Tax Expense

Net Income After Tax

1,551,477,359.00
130,383,441.00
1,421,093,918.00

498,592,779.00
856,500.00
105,456,564.00
68,229,582.00
51,026,868.00
20,353,168.00
744,515,461.00

676,578,457.00

102,042,177.00
1,692,300.00
27,311,459.00
70,699,954.00
20,575,455.00
8,004,635.00
16,175,298.00
15,346,823.00
34,060,297.00
21,825,015.00
17,213,965.00
924,643.00
8,755,757.00
33,132,590.00
9,358,837.00
65,328,986.00
15,132,357.00
15,721,671.00
52,500,000.00
38,220,500.00
6,988,083.00
 5,661,784.00
68,986,256.00
200,500.00
300,900.00
1,000,000.00
16,278,328.00
300,000.00
8,001,407.00
681,739,977.00

26,337,740.00
17,213,965.00
8,445,934.00
1,000,000.00
250,000.00
100,000.00
ding in prior year
250,000.00
10,534,116.00
6,188,779.00
5,661,784.00
2,358,226.00
(2,162,961.00)
76,177,583.00

PHP 71,016,063.00

32,269,853.70

PHP 38,746,209.30
Date O.R # Customer Particular

2/3/2019 001 ACME INC Galvanizing Services

5/30/2019 002 Sample Company Thermal Breaking Services
7/25/2019 003 Extensive Enterprise Metal Powder Coating
8/1/2019 004 STO Plain Holdings Metal Galvanizing
11/27/2019 005 Steels Inc. Shot Blasting Services

Other Income

Realized foreign exchange gain

Dividend From PLDT
Foreign exchange gain in resulting from ofsetting of accounts
Gain on Sale oof real properties subjected to CGT
Gain on Sale of shares of stock subjected to CGT
Gain on Sale of shares of stock subjected to OPT
Reversal of prior year provision for bad debts due to over recording in prior year
Interest Income
Interest Income Peso Deposit - net of 20% Final Tax
Interest Income Foreign curency Deposit - net of 15% Final Tax
Interest Income from deposits abroad
Interest income from affiliates
Share in equity earnings of Mabuhay Services, Inc., a local subsidiary
Royalties already subjected to 20% final tax
Insurance Proceeds on Casualty losses
Unrealized foreign exchange loss
Amount Received Excluded as Gross Income Included as Gross Income

294,780,725.00 - 294,780,725.00
202,105,701.00 - 202,105,701.00
516,813,025.00 - 516,813,025.00
271,596,312.00 - 271,596,312.00
135,798,155.00 - 135,798,155.00
1,421,093,918.00 1,421,093,918.00

26,337,740.00 26,337,740.00
17,213,965.00 17,213,965.00 -
8,445,934.00 8,445,934.00
1,000,000.00 1,000,000.00 -
250,000.00 250,000.00 -
100,000.00 100,000.00
250,000.00 250,000.00 -
-
5,000,000.00 5,000,000.00 -
3,500,000.00 3,500,000.00 -
1,450,000.00 1,450,000.00
584,116.00 584,116.00
6,188,779.00 6,188,779.00
5,661,784.00 5,661,784.00 -
2,358,226.00 2,358,226.00 -
(2,162,961.00) (2,162,961.00) -
43,106,569.00
Cost of services
Amount Excluded Amount Included Total
Purchase of raw materials and supplies 498,592,779.00 498,592,779.00
Factory rental 856,500.00 856,500.00
Direct Charges- Salaries, Wages and Benefits 2,500,000.00 102,956,564.00 105,456,564.00
Direct Charges- Depreciation 68,229,582.00 68,229,582.00
Direct Charges- Outside Services 51,026,868.00 51,026,868.00
Direct Charges- Others 20,353,168.00 20,353,168.00
Total Cost of Sales 742,015,461.00 744,515,461.00

Accrual Basis. Deferred

tax Liability
Remarks
 Payments CWT's Disallowed CWTs CWT'
Q1 2,750,000.00 1,239,773.00 112,500.00 1,127,273.00
Q2 1,988,263.00 2,101,000.00 1,477,727.00 623,273.00
Q3 2,250,000.00 900,000.00 346,000.00 554,000.00
Q4 - 727,533.00 563,773.00 163,760.00
Total 6,988,263.00 4,968,306.00 2,500,000.00 2,468,306.00