Friday, April 23, 2010
Thomson Jimenez Associates
5th Floor, Dale Building
Dela Rosa Cor. Salcedo Streets
Legaspi Village , Makati City
This representation is provided in connection with your audit of the financial statements of Sparrows Training Center for the year ended December 31, 2009, for the purpose of expressing an opinion as to whether the financial statements present fairly in all material respects the financial position of the Company and of the results of its operations and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards. We appreciate that all the information you require in order to form an opinion on the financial statements may not be available from an examination of the accounting records and other documents, and that you have obtained representations from the local management. The management acknowledges full responsibility for the fair preparation of the financial statements in accordance with Philippine Financial Reporting Standards (PFRS). We further acknowledge our responsibility for the design and implementation of internal control to prevent and detect fraud. We confirm, to the best of our knowledge and belief the following representations:
LIABILITIES, PROVISIONS AND COMMITMENTS
1. We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent.
2. Full provision has been made in the financial statements for all material losses expected to arise from legal action, third party claims and off-balance sheet contracts. No other claims in connection with litigation have been or are expected to be received.
3. Except as indicated in the financial statements, none of the liabilities, including those secured by reservation of title, were at the balance sheet dates, secured on any assets of the Company.
4. All commitments to buy or sell securities or businesses, bonus or profit sharing arrangements, losses arising from sale and purchase commitments and arrangements and options to buy back assets previously sold have been properly recorded and where appropriate, adequately disclosed in the financial statements.
5. The Company has satisfactory title to all the assets, and all assets disposed of or belonging to third parties have been correctly reflected in the financial statements. Where applicable, assets have been written down to provide for any impairment.
6. Unless where specifically disclosed in the financial statements, the assets were owned by the Company free of any charge, encumbrance or lien.
7. All income which arose to the date of the balance sheet has been brought into the financial statements in accordance with the company’s accounting policies. In particular, all transactions have been reflected in the financial statements and the balance sheet includes all bank accounts and other money market deposits which belong to the company.
8. There are no formal or informal compensating balance arrangements with any of our cash and investment accounts. We have no other lines of credit arrangements.
9. Deferred expenditure and prepayments included in the balance sheet are deferred to be matched against income which can with reasonable certainty be expected to accrue after the balance sheet date.
10. We have made available to you all books of accounts and supporting documentation and all minutes of directors and shareholders meetings namely those held from beginning of year under audit up to the date of issuance of your audit report.
11. We confirm the completeness of the information provided in regards to the identification of, and balances and transactions with, related parties. Amounts charged /credited to the related parties accounts are confirmed. All transactions with related parties including remuneration and arrangements, transactions or agreements to provide credit facilities to the directors and officers of the Company have been fully disclosed in the financial statements.
12. There were no significant irregularities involving management or employees who have a significant role in internal control or that could have a material effect on the financial statements. Nor have there been any allegations of fraud or suspected fraud, affecting the company’s financial statements communicated by employees, former employees, analysts, regulators or others. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
13. The financial statements are free of material misstatements, including omissions.
14. The Company has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance. We confirm that the company has fully complied with all the statutory and legal requirements that could have a material effect on the financial statements in the event of non-compliance including payment of all applicable taxes, duties and other statutory obligations.
15. There have been no subsequent events since the balance sheet date which necessitate revision of the amounts included in the financial statements or inclusion of additional disclosure. Should any material events occur, which may necessitate the revision of the amounts or inclusion of further disclosure, we shall advise you accordingly.
16. There are no plans or intentions that may materially alter the carrying value or the classification of assets and liabilities reflected in the financial statements.
17. We have reviewed the effect of the attached summary of unadjusted errors aggregated during the audit and believe that these are immaterial, both individually and in aggregate, to the financial statements taken as a whole.
18. We have reviewed all the adjustments and journal entries proposed arising out of the audit and confirm our acceptance thereof.
19. We are aware that the company is incurring losses and has a deficit as of December 31, 2009. We, however, believe that the going concern basis is appropriate in preparing the financial statements for at least 12 months from the date the above financial statements are approved by the board for issue.
Ashley Amanda S. Tisdale
BPI FAMILY SAVINGS BANK
BPI Family Savings Bank Center
Paseo de Roxas cor Dela Rosa Street
Subject : Motor Car Insurance
Per our telephone conversation this morning, I am formally notifying you about the insurance renewal of all our company vehicles covered by the following account numbers, which we are handling through our own insurance broker:
2007 Ford Everest - 12345678910
2008 Volvo XC90 D5 - 12345678911
2008 Toyota Avanza - 12345678912
2009 Ford Explorer - 12345678913
2008 Audi A6 3.2 FSI - 12345678914
2007 Volvo S60 T5 - 12345678915
As you assured me in our telephone conversation, you will be making a direct request for a special accommodation from BPI/MS Insurance Corporation not to automatically renew insurance for these vehicles since we are already in the process of renewing it with our own insurer.
Thank you for your kind assistance on this matter and we hope that BPI/MS will favorably consider our predicament.
Very truly yours,
Wednesday, April 21, 2010
Department of Finance
To whom it may concern:
This is to authorize Harry Freight Forwarders International to process the release of one (1) unit Personnel Basket Transfer , Billy Pugh X-907 in behalf of the company in pursuant to the exemption of duties and taxes required for our import shipment.
Any assistance extended to them will be highly appreciated. Thank you.
Very truly yours,
Tuesday, April 20, 2010
BPI Family Savings Bank
BPI Family Savings Bank Center
Paseo de Roxas corner Dela Rosa Street
Loan Account No. : 1912345Gentlemen:
Make Model : 2008 Volvo XC90 D5
Policy Period : May 30, 2009 to May 30, 2010
Please be informed that we are in the process of renewing our motor fleet insurance for the policy period 2010-2011, of which the above-captioned vehicle is included. Please do not procure insurance policy on our behalf because we make sure that our motor fleet insurance is automatically renewed annually. There are delays in the documentation since this matter is handled first by our authorized insurance broker. We shall provide you with the proper endorsement schedule and certification for said vehicle as soon as available.
Very truly yours,
Sunday, April 18, 2010
Smart Communications Inc,
6799 Ayala Avenue
This is to request for the increase of credit limit of the following account:
From credit limit of PhP 1,300.00 to PhP 2,000.00
Account No: 013851123456
Cellphone No: 0918 936 12345
Corporate Account: Sparrows Training
Please get in touch with the undersigned at 400-61234 or 0917 846 12345 for the required documentation. Attached is a copy of my company ID for reference.
Very truly yours,
This is to authorize the Board of Investments to verify from our agent bank the authenticity of the bank certifications/notifications on the inward remittance of export proceeds issued by the said bank and to validate the amounts stated therein.
Issued this 18th day of April, 2010 in connection with our application for Income Tax Holiday incentive for 2009 filed with the BOI.
SPARROWS TRAINING CENTER
Republic of the Philippines) S.S.
SUBSCRIBED and sworn to before me this 18th day of April, 2010 in Manila, affiant having exhibited to me his Passport No: SS 1234462123 issued on June 9, 2006 in Manila.
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Series of 2010