(Unqualified opinion)

INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

In our opinion, the financial statements present fairly, in all material respects (or give a
true and fair view of) the financial position of End Club Inc. as at December 31, 2018,
and (of) its financial performance and its cash flows for the year then ended in
accordance with Philippine Financial Reporting Standards(PFRSs) .

Basis for Opinion

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the

Financial Statements

The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Cooperative’s
internal control.
 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
 Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Cooperative’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Cooperative to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves true
and fair view.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.

Corine Angela L. Amor, CPA

SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28,2019
(Unqualified opinion with Emphasis of a Matter paragraph)

INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

In our opinion, the financial statements present fairly, in all material respects (or give a
true and fair view of) the financial position of End Club Inc. as at December 31, 2018,
and (of) its financial performance and its cash flows for the year then ended in
accordance with Philippine Financial Reporting Standards(PFRSs) .

Basis for Opinion

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw your attention to the disclosure in note 18 of the financial statements, which
outline that legal proceedings have been brought against the Company by XZY Limited.
Our opinion is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements

The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Cooperative’s
internal control.
 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
 Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Cooperative’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Cooperative to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves true
and fair view.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.
Corine Angela L. Amor, CPA
SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28, 2019

(Unqualified opinion with Other Matter paragraph)

INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

In our opinion, the financial statements present fairly, in all material respects (or give a
true and fair view of) the financial position of End Club Inc. as at December 31, 2018,
and (of) its financial performance and its cash flows for the year then ended in
accordance with Philippine Financial Reporting Standards(PFRSs) .

Basis for Opinion

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

This report is intended solely for the members of the Company and Government
Regulatory Authorities and should not be distributed to or used by other parties.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements

The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Cooperative’s
internal control.
 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
 Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Cooperative’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Cooperative to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves true
and fair view.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.
Corine Angela L. Amor, CPA
SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28,2019
(Qualified Opinion due to Material Misstatements)

INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Qualified Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

In our opinion, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph section, the financial statements present fairly, in all material
respects (or give a true and fair view of) the financial position of End Club Inc. as at
December 31, 2018, and (of) its financial performance and its cash flows for the year
then ended in accordance with Philippine Financial Reporting Standards(PFRSs) .

Basis for Qualified Opinion

As discussed in Note 5 to the financial statements, no depreciation has been provided

in the financial statements, a practice which in our opinion is not in accordance with the
requirements of Philippines Accounting Standard 16 “Property, plant and equipment”.
The charge for depreciation for the year ended 31 December 2018 should be P15,000
based on the straight line method of depreciation using annual rates of 5% for the
building and 20% for the equipment. Accordingly, the property, plant and equipment
should be reduced by accumulated depreciation of P30,000 and the loss for the year
and accumulated deficit should be increased by P5,000 and P13,000 respectively.

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Responsibilities of Management and Those Charged with Governance for the

Financial Statements

The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Cooperative’s
internal control.
 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
 Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Cooperative’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Cooperative to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves true
and fair view.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.
Corine Angela L. Amor, CPA
SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28,2019
(Qualified Opinion due to Scope Limitations)

INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Qualified Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

In our opinion, except for the possible effects of the matter described in the Basis for
Qualified Opinion paragraph section, the financial statements present fairly, in all
material respects (or give a true and fair view of) the financial position of End Club Inc.
as at December 31, 2018, and (of) its financial performance and its cash flows for the
year then ended in accordance with Philippine Financial Reporting Standards(PFRSs) .

Basis for Qualified Opinion

Company's recorded turnover comprises cash sales, over which there was no system of
internal control on which we could rely for the purpose of our audit. There were no other
satisfactory audit procedures that we could adopt to satisfy ourselves that the recorded
turnover was free from material misstatements.

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Responsibilities of Management and Those Charged with Governance for the

Financial Statements
The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Cooperative’s
internal control.
 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
 Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Cooperative’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Cooperative to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves true
and fair view.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.
Corine Angela L. Amor, CPA
SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28,2019
INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Adverse Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

In our opinion, because of the significance of the matter described in the Basis for
Adverse Opinion section of our report, the financial statements do not present fairly, in
all material respects (or give a true and fair view of) the financial position of End Club
Inc. as at December 31, 2018, and (of) its financial performance and its cash flows for
the year then ended in accordance with Philippine Financial Reporting
Standards(PFRSs) .

Basis for Adverse Opinion

The Company’s financing arrangements expired and the amount outstanding was
payable on 31 December 2018. The Company has been unable to conclude re-
negotiations or obtain replacement financing and is considering filing for bankruptcy.
This situation indicates that a material uncertainty exists that may cast significant doubt
on the Company’s ability to continue as a going concern. The financial statements do
not adequately disclose this matter.

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our adverse opinion.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements

The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Cooperative’s
internal control.
 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
 Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Cooperative’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Cooperative to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves true
and fair view.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.
Corine Angela L. Amor, CPA
SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28,2019
INDEPENDENT AUDTOR’S REPORT

To the members of End Club Inc.

Report on the Audit of Financial Statement

Disclaimer of Opinion

We have audited financial statements of End Club Inc. (the Company), which comprises
of the balance sheet as at 31 December 2018, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory
information, and the committee’s report.

We do not express an opinion on the accompanying financial statements of the

Company. Because of the significance of the matters described in the Basis for
Disclaimer of Opinion section of our report, we have not been able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion on these financial
statements.

Basis for Disclaimer of Opinion

The introduction of a new computerized accounts receivable system in September 2018

resulted in numerous errors in accounts receivable. As of the date of our report, the
Board of Directors was still in the process of rectifying the system deficiencies and
correcting the errors. We were unable to confirm or verify by alternative audit
procedures the accounts receivable included in the statement of financial position at a
total amount of P350,450 as at 31 December 2018. As a result of these matters, we
were unable to determine whether any adjustments might have been determined to be
necessary in respect of recorded or unrecorded inventories and accounts receivable,
and the related elements included in the statement of comprehensive income,
statement of changes in equity and statement of cash flows.

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs)

and we are independent of the Company in accordance with the Code of Ethics for
Professional Accountants in the Philippines, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements

The management is responsible for the preparation and fair presentation of financial in
accordance with PFRSs and for such internal control necessary to enable the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, the management is
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance is responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our responsibility is to conduct an audit of the Company’s financial statements in

accordance with International Standards on Auditing and to issue an auditor’s report.
However, because of the matters described in the Basis for Disclaimer of Opinion
section of our report, we were not able to obtain sufficient appropriate audit evidence to
provide a basis for an audit opinion on these consolidated financial statements. We are
independent of the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in Cyprus, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.

Report on the Audit of Financial Statements

Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on taxes, duties and
license fees in Note 17 to the financial statements is presented for purposes of filing
with the Bureau of Internal Revenue and is not a required part of the basic financial
statements. Such information is the responsibility of management. The information has
been subjected to the auditing procedures applied in our audit of the basic financial
statements. In our opinion, the information is fairly stated in all material respects in
relation to the basic financial statements taken as whole.
Corine Angela L. Amor, CPA
SGV & Co.

Topaz Tower, J.P. Laurel Ave, Agdao,

Davao City, 8000 Davao del Sur

February 28,2019