Client: Grace Company Prepared by: KS Date: 10/18/23 Ref: C6.

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Year end: 31 December 2022

Preliminary analytical review

Statement of Financial Position

2018 DIFFERENCE 2017 DIFFERENCE 2016

note PHP Amount % PHP Amount % PHP

Non- Current assets

62, 180,000
- 0%
PPE (1) 79,340,000 17,160,000 28% 62,180,000

Current Assets

Trade and other receivables (2) 12,829,677 -920,323 -7% 13,750,000 4,300,000 46% 9,450,000

Cash and Cash Equivalents (3) 14,210,930 11,960,930 532% 2,250,000 1,080,000 92% 1,170,000

Merchandise Inventory 4,402,787 3,502,787 389% 900,000 200,000 29% 700,000

Prepaid Expenses (4) 100,000 -100,000 -50% 200,000 90,000 82% 110,000

Other Current Assets (5) 1,856,422 956,422 106% 900,000___ 250,000 38% 650,000__
33,399,816 15,399,816 86% 18,000,000 5,920,000 49% 12,080,000

Current Liabilities

Trade and other payables (6) 5,528,175 4,477,675 426% 1,050,500 36,500 4% 1,014,000

Current Tax Liability 2,470,332 1,470,332 147% 1,000,000 400,000 67% 600,00__
7,998,507 5,948,007 290% 2,050,500 436,500 27% 1,614,000

Net current
assets/(liabilities) 25,401,309 9,451,809 59% 15,949,500 5,483,500 52% 10,466,000

Total assets Less current

liabilities 104,741,309 26,611,809 34% 78,129,500 5,483,500 8% 72,646,000

Net Assets 99,534,809 42,405,309 74% 57,129,500 -1,516,500 -3% 58,646.000

Equity
Share Capital and Reserves (7) 77,625,000 29,125,000 60% 48,500,000 - 0% 48,500,000

Accumulated Income
(8) 21,909,809 13,280,309 150% 8,629,500 -1,516,500 -15% 10,146,000
99,534,809 42,405,309 74% 57,129,500 -1,516,500 -3% 58,646,000
 Income Statement

Note 2018 DIFFERENCE 2017 DIFFERENCE 2016

PHP Amount % PHP Amount % PHP
Net Sales (9) 110,244,403 56,805,403 106% 53,439,000 5,523,000 12% 47,916,000
Cost of Sales (10) 56,642,367 21,856,867 63% 34,785,500 4,700,500 16% 30,085,000
Gross Profit 53,602,036 34,948,536 187% 18,653,500 822,500 5% 17,831,000
Interest Income 248,853 138,853 126% 110,000 30,000 38% 80,000
General and (11) 36,413,536 26,279,536 259% 10,134,000 1,369,000 16% 8,765,000
Administrative Expenses
Profit before Taxation 17,437,353 8,807,853 102% 8,629,500 -516,500 -6% 9,146,000
Income Tax Expense - - -
Profit for the Year 17,437,353 8,807,853 102% 8,629,500 -516,500 -6% 9,146,000

Note 1: Property, plant and equipments pertains to furniture and equipment, ofice equipment and leasehold
improvements. As there is no acquisitions and disposals during the year, we

Note 2: Trade and Other recievables includes Accounts Receivable, Credit card account, Wing
Hang-#794, Deposit, prepayments and Vendor-advance payments.
We will arrange audit confirmation on accounts receivable to confirm the balance as at 31 December
2022.

Note 3: Pertains to current account with Mr. Lai. We will perform substantive test on the movement for the
current year.
We will arrange confirmation of the balance and terms as at 31 December 2022. We will also check
movement and reclassification of due to and from directors.

Note 4: Pertains to the current account with Easywin Limited and Easy Champ Limited. We will perform
substantive test on the movement for the current year.
We will arrange confirmation of the balance and terms as at 31 December 2022.
Note 5: We expect that movement are due to daily operations. We will arrange bank confirmation to confirm
the balance as at 31 December 2022.
Note 6: Trade and other payables includes Accounts payable, Accrued Expense and Client-Deposit in
advance.
We will arrange audit confirmation on accounts payables to confirm the balance as at 31 December
2022.
Note 7: Pertains to the current account with Super Beauty Limited and Think Land Limited. We will perform
substantive test on the movement for the current year.
We will arrange confirmation of the balance and terms as at 31 December 2022.
Note 8: Pertains to current account with Mr. Lai. We will perform substantive test on the movement for the
Note 9: current year.
We will arrange confirmation of the balance and terms as at 31 December 2022. We will also check
movement and reclassification of due to and from directors.
Note 10: The Company is engaged in general trading of furnitures. Compared with last year, the operating
income is increased by 120%. We will perform sales transaction test by samplying check to invoices
and cut off test to ensure that revenue amount is appropriate.
Note 11: Pertains to Cost of sales of furnitures and kitchen Cabinet, Transporation cost, Installation
& Repair Cost, Purchase Discount and Other Purchase Expenses.
We will perform transaction test by samplying check to invoices

Subtantive test will be performed to understand the nature of expenses. We will also check
breakdown in prior year and perform analysis with the current year balances. We will further check
invoices and agreements, if there's any.