SYCIP GORRES VELAYO & CO.
For the attention of Mr. Ramon D. Dizon Registered Auditor Davao City
March 29, 2011 Dear Sirs,
This representation letter is provided in connection with your audit of the financial statements of our our comp company any for for the the year ende ended d on 31 Decem Decembe berr 2010 2010 main mainly ly for for the the purp purpose ose of expressing an opinion as to whether the financial statements give a true and fair view of the company’s net assets value, its financial position and the results of its operations for the year then ended, and this in accordance with the laws and regulations applicable in the Philippines. The objective of the present letter is to confirm you our understanding of a comprehensive set of elements relevant to these financial statements and to the functioning of our company. The present document is confidential and forms part of your your working papers. These representatio representations ns do in no way imply a discharge discharge of your your responsibility responsibility to express an opin opinio ion n on the the fina financ ncia iall state stateme ment ntss base based d on your audit audit that that is deem deemed ed to have have been been conducted in accordance with the legal provisions and auditing standards applicable in the Philippines, as issued by the Association Auditing and Assurance Standards Council (AASC). Those standards require that you plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material miss tatements.
1.
By virtue of the law, we are responsible for the preparation and fair presentation of the financ financial ial stateme statements nts in accord accordanc ancee with with the financ financial ial report reporting ing framew framework ork appl applica icabl blee in the the Phil Philip ippi pine nes. s. With Withou outt preju prejudi dice ce to form formal al aspe aspect ctss of mino minor r import importanc ance, e, the accoun accountin ting g record recordss were were kept kept in accord accordanc ancee with the laws laws and regulations applicable in the Philippines and the financial statements have been duly drawn up by the board of directors.
2.
We acknowledge our responsibility for the design, the implementation and the maintenance maintenance of internal internal control control in order to prepare prepare reliable reliable financial financial statements, including the fact that this internal control aims at preventing and detecting fraud and error.
3.
To the best best of our knowledg knowledge, e, the financia financiall statem statements ents are free of materi material al misst misstat atem emen ents ts in the the sense sense that that the the effe effect ct of unco uncorr rrec ected ted misst misstat atem emen ents ts (as (as summarized in the accompanying list) are immaterial, both individually and in the aggregate, to the financial statements;
4.
We confirm that we have disclosed to you the results of our assessment of the risk that that the financia financiall statem statements ents may be materia materially lly misstat misstated ed as a result result of fraud. fraud. Following our analysis we have identified no specific risk for our company, resulting from its organisation, its activity or any other factor;
5.
We confirm that we have no knowledge knowledge of any facts regarding fraud or suspected fraud that could affect the company’s financial statements;
6.
We confirm that we have not been notified by whatever person of any allegation of fraud that could affect the financial statements of the entity;
7.
We confirm that we have no knowledge knowledge of any situation – proved or suspected – of noncompliance with the laws and regulations applicable to the company, company, the effect of which which should should have have been been taken taken into into consid considera eration tion when prepa preparing ring the financ financial ial statements;
8.
We consider that all significant assumptions regarding fair value measurements, including including amortization amortization,, depreciatio depreciation n and impairment impairmentss and that the disclosures disclosures provided in that respect are reasonable. These assumptions reflect correctly the perspectives of the company and its ability to carry out its specific activities successfully;
9.
We consider that the valuation methods and rules, including, where applicable, the assump assumption tionss used used for determ determinin ining g fair fair value value within within the contex contextt of the financ financial ial reporting framework applicable to the company, as well as the consistent application of these methods and rules, are appropriate.
We confirm to the best of our knowledge and belief that:
10. All events subsequent subsequent to balance balance sheet date that, in accordance accordance with the financial financial report reporting ing framew framework ork,, would would requir requiree adjustm adjustment ent to the financ financial ial statem statement entss or disclosure in the notes thereto, have been identified and recorded;
11. We have made available to you all accounting records and supporting documentation and and all all minu minutes tes of meeti meeting ngss of share shareho hold lder ers, s, of the the boar board d of dire direct ctor ors, s, of the the management committee and of those charged with governance, held during the period from from the the begi beginn nnin ing g of the year year being being audi audited ted until until now now and, and, in gene genera ral, l, all all information relevant to your audit;
12. We have disclosed to you all our plans or intentions that may materially alter the book value or classification of assets and liabilities. Where applicable, we have disclosed in the notes to the financial statements the information relevant thereto, in accordance with the financial financial reporting framework. framework. We have recorded recorded and, where applicable, applicable, disclosed all liabilities, even contingent ones, in the notes to the financial statements, in acco accord rdan ance ce with with the the fina financ ncia iall repo report rtin ing g fram framew ewor ork k (lit (litig igati ation ons, s, mate materia riall
commit commitmen ments ts linked linked for instanc instancee to the use of financ financial ial instru instrume ments, nts, guaran guarantees tees received and provided, etc.);
13. All transactions have been properly recorded and, where applicable, disclosed in the notes to the financial statements;
14. The company has a satisfactory satisfactory title to all assets included in the financial financial statements and and appr approp opri riat atee disc disclo losu sure re note notess have have been been prov provid ided ed rega regard rdin ing g encumbrances, in accordance with the financial reporting framework.
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15. Our company has complied with all contractual obligations [or recommended by the regula regulator tory y author authoritie ities] s] that that could could have have a mater material ial effe effect ct on on the financ financial ial statements in the event of noncompliance;
16. We have not identified any events and matters that would require, in accordance with the financial reporting reporting framework framework,, a restatement restatement of the corresponding corresponding figures of the previous year;
17. We have have exhaus exhaustiv tively ely and approp appropria riately tely disclosed disclosed in the notes notes to the financ financial ial statements all information regarding related parties (directors, etc.) as defined in the fina financ ncia iall repo report rtin ing g fram framew ewor ork. k. We have have comm commun unic icate ated d to you you all all rele releva vant nt information and documentation on this subject. information with regard regard to conflicts conflicts of interest interest as defined defined in the Company Code 18. All information has been communicated to you.
