Carmona Business Club, Inc.

Financial Statements December 31, 2010 and Independent Auditors Report

Godofredo T. Diaz Jr., CPA

(PRC/BOA No. 3987 CPA No. 56854 TIN 127-919-229)

INDEPENDENT AUDITORS REPORT

CARMONA BUSINESS CLUB, INC.

PTC Compound, Carmona, Cavite

Report on the Financial Statements I have audited the accompanying financial statements of CARMONA BUSINESS CLUB, INC. which comprise the financial positions as of December 31, 2010 and 2009, statements of income, and statements of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Managements Responsibility for the Financial Statements: Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. These financial statements are the responsibility of the entitys management. Auditors Responsibility: My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Philippine Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements.

Scope An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of CARMONA BUSINESS CLUB, INC. as of December 31, 2010 and 2009, and of its financial performance for the period then ended in accordance with Philippine Reporting Standards.

GODOFREDO T. DIAZ JR. BIR Accreditation No. 07-002703-1-2009 PTR No. 4422546 January 06, 2011 Quezon City 10 April 2011

INDEPENDENT AUDITORS REPORT

The Owner ADVANZ TOOL AND DIE SUPPLIES No. 2098 M. Reyes St., Pio del Pilar, Makita City, Metro Manila We have audited the financial statements of Advanz Tool and Die Supplies as of December 31, 2010 and 2009, on which we have rendered the attached report dated 10 April, 2011. In compliance with Securities Regulation Code Rule 68, we are stating that the above Company has seven (7) stockholders owning one hundred (100) or more shares each.

GODOFREDO T. DIAZ JR. BIR Accreditation No. 07-002703-1-2009 PTR No. 3272443 January 15, 2010 Quezon City 15 February 2010

AMIABLE CONSTRUCTORS, INC.

Lot 33 Blk 20 Mt. Carmel St., Cresta Verde Exec. Subd., Novaliches, Quezon City

BALANCE SHEET
AS OF DECEMBER 31, 2009 AND DECEMBER 31, 2008

ASSETS Current Assets Cash Inventories - at cost Accounts and other receivables (Note 3) Prepayments and other current assets (Note 4) Total Current Assets Noncurrent Assets Property and equipment - net (Note 5) TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts and other payables (Note 6) Income Tax Payable Current portion of obligation under finance lease (Note 11) Total Current Liabilities Stockholders Equity Capital stock - 100 par value Authorized - 40,000 shares, Issued -10,000 shares Retained earnings Total Stockholders Equity TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
See accompanying Notes to Financial Statements.

2009

2008

1,231,977 75,000 709,519 168,701 2,185,197 476,944 2,662,141

707,630 20,040 615,638 15,258 1,358,566 149,444 1,508,010

50,500 300,000 0 350,500

70,500 49,389 0 119,889

1,000,000 1,311,641 2,311,641 2,662,141

1,000,000 388,121 1,388,121 1,508,010

AMIABLE CONSTRUCTORS, INC.

Lot 33 Blk 20 Mt. Carmel St., Cresta Verde Exec. Subd., Novaliches, Quezon City

STATEMENT OF INCOME
FOR THE PERIOD ENDING DECEMBER 31, 2009 & DECEMBER 31, 2008

INCOME Income Foreign exchange gain net Interest income COST AND EXPENSES Cost of services (Note 8) General and administrative (Note 9) Interest expense INCOME BEFORE INCOME TAX PROVISION FOR INCOME TAX (Note 12) Current Deferred NET INCOME

3,300,500 0

1,105,000 0 1,020 835 3,301,520 1,105,835 1,707,068 275,138 0 1,982,206 1,319,314 749,700 215,025 0 964,725 141,110

95,794 300,000 0 395,794 42,333. 923,520 98,777

42,333

* The Company was registered with the Philippine Securities and Exchange Commission on December 19, 1995 and started commercial operations shortly thereafter. See accompanying Notes to Financial Statements.

AMIABLE CONSTRUCTORS, INC.

Lot 33 Blk 20 Mt. Carmel St., Cresta Verde Exec. Subd., Novaliches, Quezon City

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDING DECEMBER 31, 2009

Capital Stock Issuance of capital stock Net income for the period Balances at December 31, 2009 1,000,000 1,000,000

Retained earnings 388,121 923,520 1,311,641

Total 1,388,121 923,520 2,311,641

* The Company was registered with the Philippine Securities and Exchange Commission on December 19, 1995 and started commercial operations shortly thereafter. See accompanying Notes to Financial Statements.

AMIABLE CONSTRUCTORS, INC.

Lot 33 Blk 20 Mt. Carmel St., Cresta Verde Exec. Subd., Novaliches, Quezon City

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDING DECEMBER 31, 2009 & DECEMBER 31, 2008 CASH FLOWS FROM OPERATING ACTIVITIES Income After income tax Operating income before working capital changes Increase in: Accounts and other receivables Inventories Prepayments and other current assets Accounts and other payables Net cash flows from operations Interest received Income tax paid Interest paid Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property and equipment (Note 5) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of capital stock Increase in: Amounts owed to related parties Obligation under finance lease Cash flows from financing activities NET INCREASE IN CASH CASH, BEGINNING BALANCE CASH AT END OF PERIOD

923,520 923,520 (93,881) (54,960) (153,443) 230,611 851,847 0 0 0 851,847 (327,500) 0 0 0 0 524,347 707,630 1,160,827

* The Company was registered with the Philippine Securities and Exchange Commission on December 19, 1995 and started commercial operations shortly thereafter. See accompanying Notes to Financial Statements.

AMIABLE CONSTRUCTORS, INC. NOTES TO FINANCIAL STATEMENTS

1. Corporate Information AMIABLE CONSTRUCTORS, INC., was incorporated and domiciled in the Philippines. The company was registered with the Philippine Securities and Exchange Commission on December 19, 1995 with SEC No. ASO95012627 and started commercial operation on shortly thereafter. The Companys registered office and principal place of business is located at Lot 33 Blk 20 Mt. Carmel St., Cresta Verde Exec. Subd., Novaliches, Quezon City. The Company is primarily engaged in the business of general construction and other allied businesses including the constructing, enlarging, repairing, removing, developing or otherwise engaging in any work upon buildings, roads, highways, manufacturing plants, bridges, airfields, piers, docs, mines, shafts, waterworks, railroads, railway structures, all iron steel, wood, masonry and earth construction. The financial statements of the Company as of December 31, 2009 and for the period Ending December 31, 2009 were authorized for issue by the Board of Directors (BOD) on February 28, 2010. 2. Summary of Significant Accounting Policies Basis of Preparation The accompanying financial statements have been prepared under the historical cost basis and are presented in Philippine peso, which is the Companys functional and presentation currency. Statement of Compliance The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the Philippines applicable to non-publicly accountable entities (NPAE). The Company qualifies as a NPAE under Philippine Accounting Standard (PAS) 101, Financial Reporting Standards for Non-publicly Accountable Entities and, as permitted under that standard, prepared its financial statements on the basis of Statements of Financial Accounting Standards and Statements of Financial Accounting Standards/International Accounting Standards effective as of December 31, 2004. Accounts and Other Receivables Accounts and other receivables are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Property and Equipment Property and equipment is stated at cost, excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the cost of replacing part of such property and equipment when that cost is incurred, if the recognition criteria are met.

-2Depreciation is computed using the straight-line method over the estimated useful lives of the property and equipment as follows: Office Equipment Transportation Vehicle Tools Years 3 3 3

The residual values, useful lives and depreciation method are reviewed periodically to ensure that the values, periods and method of depreciation are consistent with the expected pattern of economic benefits from items of property and equipment. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the property and equipment (calculated as the difference between the net disposal proceeds and the carrying amount of the property and equipment) is included in the statement of income and expenses in the year the property and equipment is derecognized. Impairment of Assets The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their estimated recoverable amount. The estimated recoverable amount of the assets is the greater of net selling price and value in use. The net selling price is the amount obtainable from the sale of an asset in an arms-length transaction less the cost of disposal, while value in use is the present value of estimated future net cash inflows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as interest expense.

-3Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Service fees Service fees are recognized when the related services have been rendered. Interest income Interest income is recognized as the interest accrues taking into account the effective yield on the asset. Leases Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum leased payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalized leased assets, ownership of which will be transferred to the lessee at the end of the lease term with reasonable certainty, are depreciated over the estimated useful lives consistent with that for other depreciable assets which are owned. Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognized as an expense in the consolidated statement of income on a straight-line basis over the lease term. Pension Costs Pension costs are actuarially determined using the projected unit credit method. This method reflects services rendered and to be rendered by the employees at the date of actuarial valuation and incorporates assumptions concerning employees projected salaries. Pension costs include current service cost plus amortization of past service cost, experience adjustments and changes in actuarial assumptions over the expected average remaining working lives of the covered employees. Income Tax Current income tax. Current income tax liabilities for the current and prior periods are measured at the amount expected to be paid to the taxation authority. The income tax rates and income tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Deferred income tax. Deferred income tax is provided using the balance sheet liability method on temporary differences at the balance sheet date between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable income will be available against which the deductible temporary differences can be utilized.

-4The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable income will allow the deferred income tax asset to be recovered. Deferred income tax assets and liabilities are measured at the income tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on income tax rates and income tax laws that have been enacted or substantively enacted at the balance sheet date. Income tax relating to items recognized directly in equity is recognized in the statement of changes in equity and not in the statement of income. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right to set off current income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet. Provisions Provisions are recognized only when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as interest expense. Contingencies Contingent liabilities are not recognized in the financial statements. These are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but are disclosed when an inflow of economic benefits is probable. Events After the Balance Sheet Date Post year-end events that provide additional information about the Companys position at balance sheet date (adjusting event) are reflected in the financial statements. Post year-end events that are not adjusting events are disclosed, in the notes to financial statements, when material.

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3. Accounts and Other Receivables

Accounts receivable Others 709,519 0 709,519

4. Prepayments and Other Current Assets

Input value added tax(VAT) Creditable withholding taxes Prepaid expenses 0 153,443 15,258 168,701

5. Property and Equipment

Office Equipment Costs Accumulated Depreciation Net book values 65,000 32,500 32,500 Transportation Vechicles 400,000 55,556 344,444 Tools 300,000 200,000 100,000 Total 765,000 288,056 476,944

6. Accounts and Other Payables

Accounts payable Accrued expenses Income Tax Payable 50,500 0 300,000 350,500

7. Related Party Transactions Parties are considered to be related if one party has the ability to control, directly or indirectly, the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The Company has no interest bearing advances from other company and no related party transaction.

-68. Cost of Services Construction Supplies and Materials Direct Labor 1,194,948 512,120 1,707,068

9. General and Administrative Expenses

Transportation and travel Professional fees Supplies Communication Taxes & Licenses Utilities Depreciation (see Note 5) Repairs and maintenance Representation & Entertainment 5,368 5,400 4,514 9,588 10,500 50,886 177,223 5,182 6,477 275,138

10. Income Taxes

The provision for current income tax in 2009 represents regular corporate income tax Tax at statutory income tax rate of 30% Additions to (reductions in) income tax resulting from: Nondeductible interest expense Interest income subjected to final tax 395,794 0 0 395,794

Republic Act (R.A.) No. 9337 was enacted into law amending various provisions in the existing 1997 National Internal Revenue Code. Among the reforms introduced by the said R.A. effective November 1, 2005 are as follows: Increased corporate income tax rate from 32% to 35% with a reduction thereof to 30% beginning January 1, 2009; Increased nondeductible interest expense rate from 38% to 42% with a reduction thereof to 33% beginning January 1, 2009; Granted authority to the Philippine President to increase the 10% VAT rate to 12%, effective February 1, 2006, subject to compliance with certain economic conditions. On January 31, 2006, the Bureau of Internal Revenue issued Revenue Memorandum Circular No. 7-2006 increasing the VAT rate from 10% to 12% effective February 1, 2006; Revised invoicing and reporting requirements for VAT; Expanded scope of transaction subject to VAT; and

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Provided thresholds and limitation on the amounts of VAT credits that can be claimed. On November 21, 2006, R.A. No. 9361 was issued repealing the threshold on the amount of VAT credits that can be claimed.