Verdeganicum Incorporated

LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITE
COLLEGE OF BUSINESS ADMINISTRATION

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CHAPTER 1
LEGAL AND TAXATION ASPECT
Legal Aspect discusses the required legal arrangement of the business, the
settlement finality that refers to the legal protection of settlement activity against
potential adverse effect, and the legal assessment of the company.
1.1 Legal Requirements
Doing business in the Philippines requires registration and coordination with
government agencies which are mandated to implement commercial laws enacted by the
legislative bodies.

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The following are the government agencies that a start-up business needs to
register with.
1.1.1 Securities and Exchange Commission (SEC) Registration
Basic Requirements:
1. Cover Sheet
2. Reservation Payment Confirmation
3. Articles of Incorporation
4. By-Laws
5. Treasurer’s Affidavit (for stock corporations)
6. Additional requirements:
7. Endorsement/Clearance from other government agencies, if applicable.
To avail of the service, the following procedures are observed:
1. Verify and reserve the proposed Corporation name.
2. Present the Articles of Incorporation and By-Laws.
3. File the complete documents with the SEC, upon payment of the requisite filing
fees.
4. Claim the certification from the releasing unit upon the presentation of official
receipt issued for payment of filing fee.

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Online Registration through the SEC Company Registration System
Company Registration System (CRS) is the full automation and online pre-
processing of corporations and partnerships, licensing of foreign corporations,
amendments of the articles of incorporation and other corporate applications requiring
SEC approval. The online reservation of your corporate or partnership name can be done
through the following simple steps:
1. Visit SEC website.
2. Create an account at SEC-CRS.
3. Choose the Company Type and Company Classification.
4. Choose the Major Industry Classification and its Subclass, if there are any.
5. Verify proposed company name.
6. Select SEC Office where the application will be processed.
7. Add the company’s Economic Zone and Principal Office Address.
8. Add the additional company details required.
Registration with Municipality Where the Business is Located
There are two (2) business permits that must be secured from the municipality
where the business is located:
 Business Permit
 Sanitary permit

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1.1.2 Business Permit
Application for Trece Martires’ Business Permit:
 Before applying for a Business Permit, the following must be complied first:
1. Building/Construction Permits
2. DENR Environmental Clearance or Certificate of Non-coverage (If Applicable)
3. Sanitary Permit (If Applicable)
4. Fire Safety Inspection Certificate
5. Other applicable requirements of National and Local Government Agencies
After compliance with the previous requirements, the applicant may now proceed
to Step 1, file application for new business permit with complete requirements at the
BPLO.
 STEP 1
1. Present proof of business registration, incorporation, or legal personality. (i.e.
DTI/SEC/Cooperative Development Authority (CDA) registration);
2. Present basis for computing taxes, fees, and charges (e.g. business
capitalization)
3. Provide Occupancy Permit, if required by national laws. (e.g. Building Code)
and local laws;
4. Provide Contract of Lease (if Lessee); and
5. Barangay Business Clearance

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After providing complete requirements needed in Step 1, the applicant may now
proceed to Step 2, Assessment of Taxes, Fees, and Charges.
 STEP 2
1. Proceed to City Treasurer’s Office for assessment of required taxes, fees, and
charges.
After assessment of charges in City Treasurer’s Office, the applicant may now
proceed to the final step.
 STEP 3
1. Proceed to the City Treasurer’s Office payment section for payment of taxes,
fees and charges.
2. Claim the Business Permit at the Business Permit and Licensing Office.
1.1.3 Sanitary Permit
The following are steps in securing a sanitary permit:
1. Have a discussion with the Sanitation inspector.
2. Proceed to city health officer.
Bring the application form for business permit, Laboratory and X-ray result and
the medical certificate.
1.1.4 BIR Registration
Registering business with the Bureau of internal Revenue (BIR) is one of the
things that a business owner needs to do to make a business legal and to avoid the risk of
tax evasion.

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The following documents are required when registering the business at the Bureau
of Internal Revenue:
1. BIR Form No. 1903
2. Photocopy of SEC Certificate of Incorporation
3. Articles of Incorporation
4. Photocopy of Mayor’s business permit; or Duly received application for Mayor’s
business permit, if the former is still in process with the LGU
5. New sets of permanently bound books of accounts
6. Proof of payment of Annual Registration Fee (ARF) (not applicable to those
exempts from the imposition of ARF
7. BIR Form No. 1906
8. Final and clear sample of principal receipts/invoices
Steps in BIR registration:
1. Prepare requirements provided in the Checklist of Documentary Requirements
(CDR) before going to the RDO having jurisdiction over the place of business or
residence of the taxpayer.
2. Secure a queuing number for the New Business Registrants Counter (NBRC).
3. Submit duplicate copies of the following, together with the complete documentary
requirements per CDR:

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 Filled out Application for Registration (BIR Form No. 1901/1903, whichever is
applicable), and;
 Accomplished BIR Form 0605 for payment of registration fee.
4. Once called for payment, pay the registration fee and/or other tax liabilities or
penalties on registration to the NBRC or New Business Registrant Officer.
5. Claim the Certificate of Registration (COR), auto-approved Authority to Print
(ATP), and “Ask for Receipt” Notice from the NBRC upon approval together
with the eReceipt as proof of payment of the Registration Fee and/or other tax
liabilities or penalties.
6. After securing these documents, new business registrants may proceed with the
registration of books of account within 30 calendar days from date of registration.
7. Sign the log sheet provided to confirm receipt of the COR and ATP.
8. Accomplish the Standard Taxpayer Feedback System and drop at the designated
drop box.
9. Attend the scheduled taxpayer’s initial briefing to be conducted by the concerned
RDO for new business registrants in order to know their rights,
duties/responsibilities, and tax compliance.

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1.1.5 Others
1.1.5.1 Social Security System (SSS) registration
A corporation must accomplish SSS forms R-1 (Employer SSS Registration) and
R-1A (Employment Report) signed by its president or any of the corporate officers and
submit these forms together with a photocopy of the Articles of Incorporation. The
original copy of the Articles of Incorporation must be presented to the SSS for
authentication purposes.
How to register for an SSS Online Employer Account:
1. Accomplish the online employer registration form
Go to the SSS Online Employer User ID Registration Page. It is best to use
Internet Explorer (IE) 11 when accessing the SSS Website.
Fill out properly all the required fields on this online form. To avoid issues and
delays in your SSS online employer registration, double check the details you've provided
and make sure they match your SSS records. If your registration information submission
is successful, you will then receive a message that an account activation email has been
delivered to your company email address. However, if you can't send your SSS
registration info and you get an error message, which may mean you already have a
pending registration for SSS validation or you have a previously approved registration. In
this case, you can call the SSS hotline (920-6446 to 55) for assistance.

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2. Verify your SSS online employer account
Check your inbox for an email from My.SSS account. Click on that link to access
another online form where you'll provide your data as an employer or your authorized
signatory:
a. Personal SSS Number
b. Full name
c. Email address
When you've completed this step, you'll get a message that your registration has
been submitted to SSS for verification. You'll know the results via email.
3. Wait for a confirmation email from SSS
After submitting your online employer registration information, your SSS serving
branch will check if your signatory appears on your company's Specimen Signature Card
(SS Form L-501). Once the SSS branch approves or confirms your employer authorized
signatory, SSS will send a message with your company user ID and password to your
company email address. As soon as you receive the user id and password, you can
already use them to access your My.SSS account. Make sure to login to the Employer
Login section, which is separate from Member Login.
1.1.5.2 PHILHEALTH Registration
1. The Company must register through the Philippine Business Registry (PBR).
Once registered in this system, they will no longer be required to submit documents.
However, if the employer fails to register through the PBR, the corporation shall
submit additional requirement which is SEC registration form.

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2. For government and private sectors, Company X must submit Employer Data
Record (ER1) Form (in duplicate). Phil Health Membership Registration Form (PMRF)
for each employee (in duplicate).
3. After processing, the employer will be issued PhilHealth Employer Number
(PEN) and the Certificate of Registration PhilHealth and Identification Number (PIN)
and Member Data Record (MDR) of registered employees
4. Employers (except for household employers) are required to display the
Certificate of Registration in conspicuous area of their offices.
1.1.5.3 PAG-IBIG (Home Development Mutual Fund) Registration
Below are the procedures and requirements on how to register your business as an
employer with the Pag-IBIG fund in the Philippines.
List of Requirements for Business (employer) registration with the Pag- IBIG:
1. Employer’s data form (EDF [HQP PFF 002])
2. Specimen signature form (SSF [HQP PFRI 003])
3. Valid ID
4. SSS Certification (if already registered with SSS)
5. Certified true copy of proof of business existence.
 SEC
 Certificate of corporation
 Approved articles of incorporation
 Business permit/ mayor’s permit

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NOTE: For employer with Authorized representative, a valid ID of authorized
representative and a letter of authority should also be presented upon registration.
1. The original copy of the documents shall be presented for authentication.
2. Upon submission of complete documents, the Marketing and Enforcement
Division shall issue the Payment Order Form (POF).
3. Proceed to the Cash and Administrative Services Division and pay the 1st
monthly membership contributions (MC).
4. Upon payment, present the PAG-IBIG Fund Receipt (PFR) to the Marketing
and Enforcement Division.
1.1.5.4 Department of Labor and Employment (DOLE) Registration
The Philippines Department of Labor and Employment is the executive
department of the Philippines Government mandated to formulate policies, implement
programs and services, and serve as the policy-coordinating arm of the Executive Branch
in the field of labor and employment. It is tasked with the enforcement of the provisions
of the Labor Code.
1.1.5.5 Food and Drug Administration (FDA) Certification
The Food and Drug Administration of the Philippines (formerly called the Bureau
of Food and Drugs) was created under the Department of Health to license, monitor, and
regulate the flow of food, drugs, cosmetics, medical devices, and household hazardous
waste in the Philippines.
The FDA's main goal is to ensure the health and safety of food and drugs made
available to the public

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1.2 Taxation Aspect
1.2.1 Corporate Tax
Corporations are subject to normal income tax. Normal income tax are the income
tax rates prescribed under section 27 of the National Internal Revenue Code of 1997, at
30% effective January 1, 2009. However, under the Tax Code, corporate taxpayers can
avail themselves of the Optional Standard Deduction (OSD). Under the OSD, the
allowable deduction of the taxpayer is simply presumed as a percentage not exceeding
forty percent (40%) of gross income for corporations.
1.2.2 Minimum Corporate Income Tax
Under the Republic Act No. 8424, also known as the Tax reform Act of 1997, a
minimum corporate income tax (MCIT) of two percent (2%) of the gross income is
imposed to every corporation taxable to the thirty percent regular corporate income tax
including non-profit, exempt, and special corporation with respect to their taxable income
subject to regular corporate income tax, but not to their income subject to special tax
rates.
The timing of imposition shall begin on the fourth taxable year immediately
following the taxable year in which such corporation commenced its operation.
1.2.3 Documentary Stamp tax
Documentary stamp tax is a tax on documents, instruments, loan agreements and
paper evidencing the acceptance, assignment, sale or transfer of an obligation, right or
property incident thereto. The amount of tax is either fixed or based on the par or face
value of the document or instrument.

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1.2.4 Withholding Tax
Tax withheld of all employees is based on BIR Withholding Tax Table of January
1, 2018. Under the revised withholding tax table issued by the bureau, employees who
are earning P685 per day or P20,833 per month will be exempted from withholding tax
income starting this 2018. The payroll period of employees is semi-monthly.
1.2.5 Community tax Certificate
Judicial persons are liable to community tax. Every corporation no matter how
created or organized, whether domestic or residents foreign, engaged in or doing business
in the Philippines shall pay an annual community tax.
1.2.6 Value Added Tax
It is a tax on consumption levied on the sale, barter, exchange or lease of goods or
properties and services in the Philippines and on importation of goods into the
Philippines.
Any person or entity who, during his trade or business, sells, barters, exchanges,
leases goods or properties and renders services subject to VAT. Tax rate (0% to 12%) is
added up to the selling price of a goods or services sold.
1.2.7 Real Property Tax
Real Property Tax is the tax on real property imposed by the Local Government
Unit (LGU). The legal basis is Title II of the Local Government Code (LGC), Republic
Act (R.A.) no. 7160. The owner or administrator of the property is the one responsible to
pay the real property tax at the City or Municipal Treasurer’s Office.

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If you choose to pay for one whole year, the payment is due on or before January
31. If the basic RPT and the additional tax accruing to the Special Education Fund (SEF)
are paid in advance, the sanggunian concerned may grant a discount not exceeding
twenty percent (20%) of the annual tax due.
Options to pay the RPT in full or in installment, which is quarterly, can be
preferred. Taxpayers can opt to pay for one whole year, if so, the payment is due on or
before the thirty-first (31st) of January each year. However, if they decide to pay in
instalment, they have to religiously remember these dates:
1st quarter: On or before March 31
2nd quarter: On or before June 30
3rd quarter: On or before September 30
4th quarter: On or before December 31
In case of failure to pay the basic RPT and other taxes when due, the interest at
the rate of two percent (2%) per month shall be imposed on the unpaid amount, until fully
paid. The maximum number of months is thirty-six (36) months, so effectively; the
maximum interest rate is seventy-two percent (72%).
1.2.8 Fringe Benefit Tax
Fringe benefit is a special form of benefits you provide your employees on in
addition to their salaries and wages. You base the 32% FBT on the grossed-up-monetary
value of fringe benefit in accordance with the valuation guidelines provided by the
Bureau of Internal Revenue (BIR) in Revenue Regulations No. 3-98.

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a. The grossed-up monetary value
The grossed-up monetary value of the fringe benefit shall be determined by
dividing the monetary value of the fringe benefit as provided for in Revenue Regulations
No 3-98 (as amended by RR 5-2011) by the percentage divisor in accordance with the
following schedule:
In general, for citizen, resident alien, and non-resident alien engaged in trade or
business in the Philippines – 68%
For non-resident alien not engaged in trade or business in the Philippines – 75%
For alien or Filipino individuals employed by Foreign Petroleum Service
Contractors/ Subcontractors, Offshore Banking Units and Regional or Area Headquarters
and Regional Operating Headquarters of Multinational Companies occupying
executive/managerial and technical positions – 85%
Note: Employees in special economic zones, including Clark Special Economic
Zone and Subic Economic and Free Trade Zone, subject to the applicable divisor as
herein provided.
b. Applicable tax rates
The fringe benefit tax shall be imposed at the following rates:
In general – 32%
For non-resident alien individual who is not engaged in trade or business in the
Philippines – 25%
For alien or Filipino individuals employed by Foreign Petroleum Service
Contractors/Subcontractors, Offshore Banking Units and Regional or Area Headquarters

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and Regional Operating Headquarters of Multinational Companies occupying
executive/managerial and technical positions – 15% Note: Employees in special
economic zones, including Clark Special Economic Zone and Subic Special Economic
and Free Trade Zone, subject to the normal rate of fringe benefit tax or the special rates
of 25% or 15% as herein provided.

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Articles of Incorporation
Of
Verdeganicum Incorporated
KNOW ALL MEN BY THESE PRESENTS:
The undersigned incorporators, all of legal age and are residents of the
Philippines, have this day voluntarily agreed to form a stock corporation under the laws
of the Republic of the Philippines;
AND WE HEREBY CERTIFY:
FIRST: That the name of said corporation shall be Verdeganicum Incorporated.
SECOND: That the purposes for which such corporation is incorporated:
PRIMARY PURPOSE
To engage into manufacturing, distributing goods, and merchandising of organic
lotion throughout the country.
SECONDARY PURPOSE
a) To purchase, acquire, own, lease, sell and convey real properties such as lands,
buildings, factories and warehouses and machineries, equipment and other personal
properties as may be necessary or incidental to the conduct of the corporate business, and
to pay in cash, shares of its capital stock, debentures and other evidence of indebtedness
or other securities, as may be deemed expedient for any business or property acquired by
the corporation.

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b) To borrow or raise money necessary to meet the financial requirements of its
business.
c) To have a plantation of selected trees, where its leaves serve as our raw material, to
suffice the need of production and lessen the risk of loss from the suppliers.
d) To hire labor and choosing the right suppliers of raw materials to manufacture,
prepare, store, pack, buy, sell, import, deal in, and deliver organic lotion within the
Philippine Archipelago.
e) To promote the business through advertisements, may it be on ad spaces and on social
media platforms.
f) To acquire by purchase, lease or otherwise, lands and interest in lands, and to own,
hold, improve, develop, manage and subdivide any real estate owned and controlled by
the Corporation to engage in the financing, underwriting, promoting, managing and
administrating of any operation or business consisting of real property or any interest
therein, or any other transactions involving real estate or any interest therein.
g) To do all or any of the above things as principals, agents, contractors, trustees or
otherwise, and by or though trustees, agents or otherwise and either alone or in
conjunction with others.
THIRD: That the principal office of the corporation is located along Conchu Road, Brgy.
Conchu, Trece Martires City, Cavite.
FOURTH: That the term for which said corporation is to exist is 50 years from and after
the date of issuance of the certificate of incorporation;

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FIFTH: That the names, nationalities and residences of the incorporators are as follows:
NAME NATIONALITY RESIDENCE
Brgy. Lantic, Carmona

Danielle Marie S. Fullido Filipino Estates, Carmona, Cavite
Brgy. Anabu II, Imus,
Paulyne Mae C. Orcasitas Filipino
Cavite
Brgy. Tanzang Luma IV,
John Albert Q. Paus Filipino Imus, Cavite
Brgy. Bucandala I, Imus,
Maria Ivyann F. Pura Filipino
Cavite
Brgy.Manggahan, General
Jayromeloid A. Solis Filipino Trias, Cavite
SIXTH: That the number of directors of the corporation shall be five (5); and the names,
nationalities and residences of the first directors of the corporation are as follows:
NAME NATIONALITY RESIDENCE

Danielle Marie S. Fullido Filipino Estates, Carmona, Cavite
Paulyne Mae C. Orcasitas Filipino Brgy. Anabu II, Imus, Cavite

John Albert Q. Paus Filipino Imus, Cavite
Cavite
Brgy. Manggahan, General
Jayromeloid A. Solis Filipino Trias, Cavite

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SEVENTH: That the authorized capital stock of the corporation is One Hundred Million
pesos (Php 200,000,000) in lawful money of the Philippines, divided into One Million
(2,000,000) shares with the par value of One Hundred Pesos (Php 100) pesos per share;
EIGHT: That at least twenty-five (25%) percent of the authorized capital stock above
has been subscribed as follows:
NO. OF
NAME OF AMOUNT
NATIONALITY SHARES
SUBSCRIBERS SUBSCRIBED
SUBSCRIBED
Danielle Marie Fullido Filipino 120,000 12,000,000
Paulyne Mae C. Orcasitas Filipino 120,000 12,000,000
John Albert Q. Paus Filipino 120,000 12,000,000
Maria Ivyann F. Pura Filipino 120,000 12,000,000
Jayromeloid A. Solis Filipino 120,000 12,000,000

600,000 60,000,000
NINTH: That the above-named subscribers have paid at least twenty-five (25%) percent
of the total subscription as follows:
NAME OF AMOUNT
TOTAL PAID-UP
SUBSCRIBERS SUBSCRIBED
Danielle Marie Fullido 12,000,000 3,000,000
Paulyne Mae C. Orcasitas 12,000,000 3,000,000
John Albert Q. Paus 12,000,000 3,000,000
Maria Ivyann F. Pura 12,000,000 3,000,000
Jayromeloid A. Solis 12,000,000 3,000,000
60,000,000 15,000,000

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TENTH: That JAYROMELOID A. SOLIS has been elected by the subscribers as
Treasurer of the Corporation to act as such until his successor is duly elected and
qualified in accordance with the by-laws, and that as such Treasurer, he has been
authorized to receive for and in the name and for the benefit of the corporation, all
subscriptions or donations paid or given by the subscribers.
ELEVENTH: That no transfer of stock or interest which will reduce the ownership of
Filipino Citizens to less than the required percentage of the capital stock as provided by
existing laws shall be allowed or permitted to be recorded in the proper books of the
corporation and this restriction shall be indicated in all the stock certificates issued by the
corporation.
IN WITNESS WHEREOF, we have hereunto signed these Articles of Incorporation, this
25th day of August 2018, in the City/Municipality of Trece Martires, Province of Cavite,
Republic of the Philippines.
SGD SGD SGD

Danielle Marie Fullido Paulyne Mae C. Orcasitas John Albert Q. Paus
SGD SGD
Maria Ivyann F. Pura Jayromeloid A. Solis

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ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )

CITY/MUNCIPALITY OF ) S.S
PROVINCE OF )
BEFORE ME, a Notary Public, for and in _____________________,
Philippines, this 25th day of August 2018, personally appeared the following persons:
Name TIN/ID/Passport No. Date &

Place Issued
Sept. 14, 2018 –

Danielle Marie Fullido Carmona, Cavite
Jun. 7, 2018 – Imus,
Paulyne Mae C. Orcasitas Cavite
Dec. 3, 2018 – Imus,
John Albert Q. Paus Cavite
Mar. 9, 2018 – Imus
Maria Ivyann F. Pura Cavite
Feb. 10, 2018 – Gen.
Jayromeloid A. Solis Trias, Cavite
known to me and to me known to be the same persons who executed the foregoing
Articles of Incorporation constituting of six (6) pages, including this page where the
acknowledgement is written, and they acknowledged to me that the same is their free act
and voluntary deed.
WITNESS MY HAND AND SEAL on the day first above-written.
NOTARY PUBLIC
My commission expires on
_______________________,
19___________
Doc. No. ________

Page No. ________
Book No. ________
Series of _________

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By - Laws
Of
Verdeganicum Incorporated
ARTICLE 1 THE TIME, PLACE AND MANNER OF CALLING AND
CONDUCTING REGULAR OR SPECIAL MEETINGS OF THE DIRECTORS.
SECTION 1.1 Regular meetings of the board of directors of the corporation shall be held
monthly, unless the by-laws provide otherwise.
SECTION 1.2 Special meetings of the board of directors may be held at any time upon
the call of the president or as provided in the by-laws
SECTION 1.3 Meetings of directors may be held anywhere in or outside of the
Philippines, unless the by-laws provide otherwise. Notice of regular or special meetings
stating the date, time and place of the meeting must be sent to every director or trustee at
least one (1) day prior to the scheduled meeting, unless otherwise provided by the by-
laws. A director may waive this requirement, either expressly or impliedly.
ARTICLE 2 THE TIME AND MANNER OF CALLING AND CONDUCTING
REGULAR OR SPECIAL MEETINGS OF THE STOCKHOLDERS.
SECTION 2.1 Regular or annual meetings of stockholders shall be held annually on June
15 of each year.
SECTION 2.2 Written notice of regular meetings shall be sent to all stockholders of
record at least two (2) weeks prior to the meeting, unless a different period is required by
the by-laws.

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SECTION 2.3 Special meetings of stockholders shall be held at any time deemed
necessary or as provided in the by-laws:
SECTION 2.4 Written notice of special meetings shall be sent to all stockholders at least
one week prior to the meeting, unless a different period is required by the by-laws.
SECTION 2.5 Stockholders’ meetings, whether regular or special, shall be held in the
city or municipality where the principal office of the corporation is located, and if
practicable in the principal office of the corporation. Metro Manila shall, for the purpose
of this provision, be considered city or municipality.
ARTICLE 3 THE REQUIRED QUORUM IN MEETINGS OF STOCKHOLDERS
SECTION 3.1 The required quorum in meetings of stockholders shall consist of the
stockholder/s representing a majority of the outstanding capital stock.
ARTICLE 4 THE FORM FOR PROXIES OF STOCKHOLDERS AND THE
MANNER OF VOTING THEM
SECTION 4.1 Stockholders may vote in person or by proxy in all meetings of
stockholders. Proxies shall be in writing, signed by the stockholder and filed before the
scheduled meeting with the corporate secretary. Unless otherwise provided in the proxy,
it shall be valid only for the meeting for which it is intended. No proxy shall be valid and
effective for a period longer than five (5) years at any one time.
ARTICLE 5 THE QUALIFICATIONS, DUTIES, TERM AND COMPENSATION OF
DIRECTORS
SECTION 5.1 No person convicted by final judgment of an offense punishable by
imprisonment for a period exceeding six (6) years, or a violation of this Code, committed

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within five (5) years prior to the date of his election shall qualify as a director. Every
director must own at least one (1) share of the capital stock of the corporation, which
share shall stand in his name on the books of the corporation. Any director who ceases to
be the owner of at least one (1) share of the capital stock of the corporation shall thereby
cease to be a director. Majority of the directors must be residents of the Philippines.
The corporate powers of the corporation shall be exercised, all business conducted, and
all property of the corporation be controlled and held by the board of directors to be
elected from among the holders of stocks, who shall hold office for one (1) year and until
their successors are elected and qualified.
SECTION 5.2 The directors shall not receive any compensation, as such directors,
except for reasonable per diems. Any compensation may be granted to directors by the
vote of the stockholders representing at least a majority of the outstanding capital stock at
a regular or special stockholders’ meeting, in no case shall the total yearly compensation
of directors, as such directors, exceed ten (10%) percent of the net income before income
tax of the corporation during the preceding year.
ARTICLE 6 THE MANNER OF ELECTION OR APPOINTMENT, QUALIFICATION
AND THE TERM OF OFFICE OF ALL OFFICERS OTHER THAN DIRECTORS
SECTION 6.1 Immediately after their election, the directors of a corporation must
formally organize by the election of a PRESIDENT, who shall be a director, a
TREASURER who may or may not be a director, a SECRETARY who shall be a
resident and citizen of the Philippines, and such other officers as may be provided in the
by-laws. Two (2) or more positions may be held concurrently by the same officer,

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however no one shall act as PRESIDENT and SECRETARY or as PRESIDENT and
TREASURER at the same time. The officers of the corporation shall hold office for one
(1) year and until the successors are elected and qualified. The officers of the corporation
shall perform functions as required by existing laws, rules and regulations.
ARTICLE 7 CALENDAR YEAR
SECTION 7.1 The calendar year of the corporation shall begin on the first day of
January and end on the last day of December of each year.
ARTICLE 8 SEAL
SECTION 8.1 The corporate seal shall be determined by the Board of Directors.
ARTICLE 9. MISCELLANEOUS PROVISIONS:
SECTION 9.1 Matters not covered by the provisions of these by-laws shall be governed
by the provisions of the Corporation Code of the Philippines.
IN WITNESS WHEREOF, we, the undersigned incorporators and/or stockholders
present at said meeting and voting thereat in favor of the adoption of said by-laws, have
hereunto subscribed our names this 25th day of August at General trias, Cavite.
SGD SGD
Danielle Marie Fullido Paulyne Mae C Orcasitas
SGD SGD
John Albert Q. Paus Maria Iyann F. Pura
SGD
Jayromeloid A. Solis

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TREASURER’S AFFIDAVIT

PROVINCE OF )
I, JAYROMELOID A. SOLIS, being duly sworn, depose and say:
That I have been elected as Treasurer by the stockholders of Verdeganicum
Incorporated, to act as such until my successor has been duly elected and qualified in
accordance with the by-laws of the corporation, and that as such Treasurer, I have been
authorized to receive for the corporation all subscriptions paid in by the subscribers for
the capital;
That out of the total capital stock, shares worth SIXTY MILLION PESOS (Php
60,000,000) has been actually subscribed and that of said subscription, FIFTEEN
MILLION PESOS (Php 15,000,000) in cash / real property / machineries and
equipment /stock dividend / via conversion of liabilities into equity, has been actually
paid to me for the benefit and to the credit of the corporation; and that at least twenty-five
per centum (25%) of the total authorized capital stock has been subscribed and that at
least twenty-five per centum (25%) of such subscription has been actually paid to me for
the benefit and to the credit of the corporation and that said payment represents fresh and
additional paid in capital of the corporation.

27
JAYROMELOID A. SOLIS
Treasurer
SUBSCRIBED AND SWORN to before me, a Notary Public, this 25TH day of August
2018, affiant exhibiting to me his Community Tax Certificate No.15879742 issued on
January 11, 2018 at Trece Martires, Cavite.
NOTARY PUBLIC
_______________________,
19___________
Doc. No._______
Page No._______
Book No._______
Series of ________

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CHAPTER 2
MANAGEMENT ASPECT
The objective of the management aspect of a feasibility study is to determine the
option effectiveness of the organizational setup and the qualifications of the individuals
who will make up the organization.
2.1 Business Profile
2.1.1 Business Name
Verdeganicum Incorporated is the name of our business. Verdeganicum is a
hybrid term for Verde and Organicum. Verde represents the color green which means
freshness and Environment or Nature. Organicum is a Latin word which means Organic.
The company prefers to use Latin terminologies because Latin Countries are one of the
largest distributors of cosmetic products, like lotions, in the world. Our company name
symbolizes that our products will bring freshness and skin benefits because the more
natural or eco-based products you introduce into your beauty regimen the more beneficial
it is for you skin.
2.1.2 Business Logo

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2.1.3 Type of Business Organization
Verdeganicum Incorporated is a corporation. According to the Corporation Code
of the Philippines, Section 2, corporation is defined as an artificial being created by
operation of law, having the right of succession and the powers, attributes and properties
expressly authorized by law or incident to its existence.
According to Section 11 of the Corporation Code of the Philippines, A
corporation shall exist for a period not exceeding fifty (50) years from the date of
incorporation unless sooner dissolved or unless said period is extended. A private
corporation may extend or shorten its term as stated in the articles of incorporation when
approved by a majority vote of the board of directors or trustees and ratified at a meeting
by the stockholders representing at least two-thirds (2/3) of the outstanding capital stock
or by at least two-thirds (2/3) of the members in case of non-stock corporations. This is
supported by Section 37 of the Corporation Code of the Philippines, the Power to extend
or shorten corporate term.
A corporation is created when it is incorporated by a group of shareholders who
have ownership of the corporation, represented by their holding of common stock, to
pursue a common goal. A corporation's goals can be for profit or not, as with charities.
However, the vast majority of corporations aim to provide a return for its shareholders.
Shareholders, as owners of a percentage of the corporation, are only responsible for the
payment of their shares to the company's treasury upon issuance.
Unlike a partnership, shareholders in a corporation have limited liability for
corporation’s obligations. Limited liability allows the shareholders to raise large amounts

30
of investments for the company by combining their own corporation a continuous
existence. This is supported by Section 37 of the Corporation Code of the Philippines
which gives the corporation the power to extend or shorten its corporate term.
2.1.4 Incorporators
An incorporator is a person who creates the corporate existence by signing and
filing the Articles of Incorporation. He/she may be one of the shareholders, directors,
officers of the corporation, or any other person.
Name Nationality Address

Danielle Marie S. Fullido Filipino
Estates, Carmona, Cavite
Brgy. Anabu II, Imus,
Paulyne Mae C. Orcasitas Filipino
Cavit
John Albert Q. Paus Filipino
Imus, Cavite

Cavite
Brgy.Manggahan,
Jayromeloid A. Solis Filipino
General Trias, Cavite
2.1.5 Management Style
The company is going to initiate a democratic form of management wherein
managers and employees take part in the decision making in the workplace. The
democratic management style involves managers reaching decisions with the input of the
employees but being responsible for making the final decision. There are many variations

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of this style of management including consultative, participative, and collaborative styles.
Employee ideas and contributions are encouraged, but not necessary. Communication is
both top-down and bottom-up and makes for a cohesive team.
This type of style is versatile with the advantages being more diverse perspectives
involved in decision making. As employees are being taken into account before the
manager makes decisions, the employees feel valued which increases motivation and
productivity.
2.1.6 Mission Statement
We aim to provide consumers, an effective organic cosmetic product that has no
harmful chemical content. We are dedicated to the following:
 To satisfy the demand of organic products in the market.
 To offer low-price but high-quality organic lotions.
 To produce products without any harmful chemicals
2.1.7 Vision Statement
Verdeganicum Incorporated, envisions itself to be a company that aims to provide
its consumers the best organic cosmetic products available in the market.
2.1.8 Corporate Values
INTEGRITY - The Company want to have employees that are honest while
having strong moral principles or moral uprightness. For it is integrity that enhances all
the other values.

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INNOVATION - This is to make innovative changes and product related
advancements that will satisfy the market's demand.
ETHICS - To make our employees act accordingly when solving business related
ethical dilemmas.
PROFESSIONALISM - This is to ensure that our employee interactions and
relationships with customers will meet the company goals and objectives.
2.2 Organizational Chart
President
/CEO
Executive
Secretary

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2.3 Job Description and Qualification
President/Chief Executive Officer
Job Description
 Serves as the overall leader and main decision maker of the corporation
 Creates, communicates and implements the organization’s vision, mission,
objectives and overall direction together with other of the top executives
 Plans, implements and integrates the strategic course of the company to attain
desired objectives
 Leads, guides, directs and evaluates the performance of the company’s top leaders
 Reviews activity reports and financial statements to determine progress and status
of the company in relation to the set objectives
 Initiates change in the company’s strategies and objectives to cope up with new
factors
 Controls and coordinates the operational, financial, marketing and sales programs
of the business through executive officers and managers
 Reports to the Board of Directors about the company’s status periodically
Job Qualifications:
 Must be a member of the Board of Directors
 Must have at least 5 years of experience in managing a business
 Must have a master’s degree in Business Administration, or in any related field
 Must have wide knowledge of leadership and good governance

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 Must have a high level of human and interpersonal skills to guide, influence,
motivate and evaluate the company’s personnel, especially the top management
 Must have excellent oral and written communications skills
 Must have the qualities of a good leader such as professional integrity and
adaptability
Executive Secretary
Job Description:
 Provides administrative and clerical support to departments or individuals,
especially to the President
 Schedules meetings and arranges conference rooms
 Handles information requests
 Arranges for outgoing mail and packages to be picked up
 Prepares confidential and sensitive documents
 Coordinates office management activities
 Takes and transcribes dictation
Job Qualification:
 Must be 25-35 years old
 Must at least have a bachelor’s degree in Office Administration or Office
Management or other related degree
 Must have at least 2 years secretarial experience
 Must have good interpersonal and communication skills

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 Must be knowledgeable in computer office software
General Manager
Job Description:
 Oversees daily operations of the business unit or organization
 Ensures the creation and implementation of a strategy designed to grow the
business
 Coordinates the development of key performance goals for functions and direct
reports
 Provides direct management of key functional managers and executives in the
business unit
 Ensures the development of tactical programs to pursue targeted goals and
objectives
 Ensures overall delivery and quality of the unit's offerings to customers
 Engages in key or targeted customer activities
 Oversees key hiring and talent development programs
 Evaluates and decides upon key investments in equipment, infrastructure and
talent
 Communicate strategy and results to the unit's employees
 Reports key results to corporate officers
 Engages with corporate officers in broader organizational strategic planning

36
Job Qualifications:
 Must have a bachelor’s degree in Business Administration
 Preferably with a master’s degree in Business Administration
 Must have a strong sense of leadership
 Must know how to use Microsoft Applications
 Has the ability to coach, train and motivate employees
 Has the ability to effectively communicate and work efficiently with other
employees
PRODUCTION DEPARTMENT
Production Manager
Job Description:
 Oversees the production process, reducing costs whenever possible and making
sure products are produced on time and are of good quality
 Monitors product standards and implement quality control programs
 Works closely with other managers of the company to ensure proper
implementation of the company’s policies and goals
 Assures the safety of the personnel and implements and maintains the safety
program
 Responsible for the quality and productivity of production personnel
 Maintains well-trained and motivated staff
 Conducts periodic personnel evaluation in the Production Department

37
 Responsible for staff scheduling to include work assignments/rotations, employee
training, employee vacations, employee breaks, overtime assignments, back up
for absent employee and shift rotations
Job Qualifications:
 Must have at least 5 years of experience in operating a business
 Must have a bachelor’s degree in Operations Management or Business
Administration related disciplines
 Must have a master’s degree in Business Administration or another related field
 Must have an extensive knowledge of the industry, preferably an expert on
cosmetic products
 Must be able to coordinate the operations and production of a business well
 Must have a good track record in the management of business operations and
quality assurance
 Must be knowledgeable in using computer office software
 Must have an excellent oral and written communications
Production Workers
Job Description:
 Skilled in the constructing of cosmetic product
 Responsible for the making of cosmetic products
 Responsible for farm maintenance

38
Job Qualification:
 At least High School graduate
 With wide range of knowledge about cosmetic
 With knowledge of basic hand tools
 Willingness to work overtime when necessary to deliver the project on time
 Knowledge of cosmetic-making techniques
 Ability to estimate time and materials needed for assigned work projects
Machine Mechanic
Job Description:
 Maintains heavy equipment
 Ensures safety of the equipment used
 Locates sources of problems by observing mechanical devices in operations
 Removes defective parts by dismantling devices
 Controls downtime by informing production workers of routine preventive
maintenance techniques
 Maintains equipment parts and supplies inventories
 Provides mechanical maintenance information
 Contributes to team effort by accomplishing related results as needed.
Job Qualification:
 At least a High School Graduate
 At least two (2) years of working experience in the manufacturing industry

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 Good communication skills
 Has knowledge about equipment in a factory
 Has knowledge on basic troubleshooting
Chemist
Job Description:
 Creates and improves processes and products, such as cosmetics.
 Examines those compounds to determine how they interact with other chemicals.
 Improves current scientific developments or to further, enhance or re-evaluate
current scientific theory.
 Utilizes advanced lab equipment and computers to conduct their analyses.
Job Qualification:
 Graduated of Bachelor Science in Chemistry or Bachelor Science in Biochemistry
 Must have license or passed thd chemistry board examination
 Knowledgeable in formulating products
 One year experience in laboratory
 Work experience of being laboratory analyst
MARKETING DEPARTMENT
Marketing Manager
Job Description:
 Establishes marketing goals based on past performance and market forecasts

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 Oversees current offerings and comes up with initiatives for new products or
services
 Researches and analyzes market trends, demographics, pricing schedules,
competitor products, and other relevant information to form marketing strategies
 Works with marketing staff to develop detailed marketing plans for all media
channels and sales teams
 Approves and oversees the creative development of promotional materials,
website content, advertisements, and other marketing-related projects
 Communicates with various media buyers, advertising agencies, printers, and
other services to help marketing projects come to fruition
 Provides in-depth information to interested clients, and acts as a representative for
the marketing department in important buyer meetings
 Works within the department budget to develop cost-effective marketing plans for
each product or service
Job Qualifications:
 Must have a bachelor’s degree in Marketing Management
 Intimate understanding of traditional and emerging marketing channels
 Excellent communication skills
 Ability to think creatively and innovatively
 Budget-management skills and proficiency

41
 Professional judgment and discretion that comes from years of experience in the
field
 Analytical skills to forecast and identify trends and challenges
 Familiarity with the latest trends, technologies and methodologies in graphic
design, web design, production, etc.
Marketing Staff
Job Description:
 Assembles consumer rating reports by compiling, consolidating, formatting, and
summarizing information, graphs, and presentations
 Updates competitor database by inputting data from field sales; compiling,
consolidating, formatting, and summarizing information, graphs, and
presentations; distributing reports
 Publishes pricing schedules by verifying freight rates, charges, and allowances
 Supports sales presentations by assembling quotations, proposals, videos, slide
shows, demonstration and product capability booklets; compiling account and
competitor analyses
Job Qualification:
 Must have a bachelor’s degree in Marketing
 Must have at least 1 year of experience
 Must be a creative thinker
 Must possess excellent communication and interpersonal skills

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 Must possess pleasing personality and excellent negotiation skills
 Must be knowledgeable in various media advertising
HUMAN RESOURCE DEPARTMENT
Human Resource Manager
Job Description:
 Maintains the work structure by updating job requirements and job descriptions
for all positions
 Maintains organization staff by establishing a recruiting, testing, and interviewing
program; counseling managers on candidate selection; conducting and analyzing
exit interviews; recommending changes
 Prepares employees for assignments by establishing and conducting orientation
and training programs
 Recommends, designs and implements programs and activities that will foster
camaraderie and unity within the organization
 Develops and implements a grievance mechanism to address employee issues and
concern
 Prepares the HR annual plan and budget based on guidelines set by management
Job Qualification:
 Must have bachelor’s degree in Business Administration major in Human
Resources Development
 Must have at least one (1) year experience in Human Resource Function

43
 Must possess good communication skills
 Approachable and can excellently deal with different types of people
 Must be able to maintain strict confidentiality
FINANCE DEPARTMENT
Accounting Head
Job Description:
 Oversees day-to-day financial operations
 Reviews and approves disbursements, supplier invoices, contracts, customer
billings and payroll
 Responsible for funds and payroll
 Develops and maintains sound accounting principles, policies and procedures and
internal control measures
 Leads and supervises the monthly and annual closing of books
 Reviews the bookkeeping and recording of transactions, maintenance and review
of general ledger
 Ensures correctness, confidentiality and integrity of all financial data
 Develops and supports budget and forecasting activity
 Liaise with tax authorities and other government offices for all statutory and
compliance requirements
 Leads the preparation of monthly, quarterly and annual financial reports

44
Job Qualifications:
 Must have a bachelor’s degree in Accountancy
 Must be a Certified Public Accountant
 Must have at least three (3) year experience in the same role from a Financial or
Banking Industry
 Good understanding of business and financial issues
 Strong ability to multi-task and to work on tight deadlines
 Trustworthy and practices confidentiality
Accounting Staff
Job Description:
 Prepares general ledger entries by maintaining records and files; reconciling
accounts
 Prepares payments by accruing expenses; assigning account numbers; requesting
disbursements; reconciling accounts
 Develops and implements accounting procedures by analyzing current
procedures; recommending changes
 Protects organization's value by keeping information confidential
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations

45
 Accomplishes accounting and organization mission by completing related results
as needed
Job Qualifications:
 Must have a bachelor’s degree in Accountancy
 Must have at least one (1) year experience in the same role from a Financial or
Banking Industry
 Good understanding of business and financial issues
 Possess technical skills
 Strong ability to multi-task and to work on tight deadlines.
 Trustworthy and practices confidentiality
LOGISTICS DEPARTMENT
Logistics Manager
Job Description:
 Creates policies and procedures for logistic activities
 Must understand customer needs and be able to apply the knowledge in improving
warehouse operation
 Ensures cost efficiency to the overall cost of the operation
 Must plan, implement and control the efficient flow/delivery of goods in order to
meet customer’s demand
 Constantly be thinking of processes to accelerate logistics and enhance
efficiencies

46
 Develops and initiates monthly reports having required project timelines,
corporate metrics and productivity measurements
 Ensures carrier compliance with company policies or procedures for transit and
delivery of materials
 Responsible for contacting suppliers
Job Qualification:
 Graduate of any business-related, computer or engineering course
 At least two (2) years of experience in managing a warehouse and logistics
operations
 Must be able to motivate a workforce and encourage strong teamwork
 With good interpersonal skills
 Can work under pressure
 Can work for extended hours
 Has good communication skills
Company Driver
Job Description:
 Determines appropriate routes and maintains schedule
 Keeps the vehicle in good condition
 Assists in loading and unloading of delivery packages
 Reports all accidents and incidents involving drivers or company equipment

47
Job Qualifications:
 Must have a Professional Driver’s License
 With at least five (5) years driving experience.
 Familiar with places around Cavite
 With good working attitude, flexible and self-motivated
 Willing to work on extended hours
 Highly attentive to given instructions
 Has good communication skills
Company Helper
Job Description:
 Assists driver with unloading goods during delivery
 Takes care of the goods to be delivered
 Attentive to given instructions
Job Qualification:
 Open for high school graduate
 Has experience of at least one (1) year
 Must have a Professional Driver’s License
 With good interpersonal and communication skills
 Has experience in warehouse and delivery
 Physically Fit

48
Warehouse Manager
Job Description:
 Assists in your creating a job application that will attract job candidates who are
qualified for the job
 Provides materials, equipment, and supplies by directing receiving, warehousing,
and distribution services; supervising staff
 Maintains receiving, warehousing, and distribution operations by initiating,
coordinating, and enforcing program, operational, and personnel policies and
procedures
 Controls inventory levels by conducting physical counts; reconciling with data
storage system
 Maintains warehouse staff by recruiting, selecting, orienting, and training
employees
Job Qualification:
 Graduate of bachelor’s degree in Operation Management, Business
Administration, Business Management, and Logistics.
 Proven work experience as a warehouse manager
 Expertise in warehouse management procedures and best practices
 Proven ability to implement process improvement initiatives
 Hands on experience with warehouse management software and databases

49
MAINTENANCE DEPARTMENT
Utilities
Job Description:
 Must always maintain a clean work area
 Handle cleaning fluids and other hazardous chemicals
 Repair or replace broken equipment
 Must locate the parts and tools needed to complete the task successfully
Job Qualification:
 At least elementary graduate
 Strong ability to follow oral and written instructions properly
 Ability to read meters, pipeline drawings, blueprints and maps
 Knowledge of precautions necessary for ensuring a safe work environment for
self and co-workers
 Ability to develop and maintain effective working relationships with technical
teams
2.4 Business Policy and Regulation
Business policies are the guidelines developed by an organization to govern its
actions. They define the limits within which decisions must be made. Business policy
also deals with acquisition of resources with which organizational goals can be achieved.
2.4.1 Hiring Policy
The hiring process is the process of reviewing applications, selecting the right
candidates to interview, testing candidates, choosing between candidates to make the

50
hiring decision and performing various pre-employment tests and checks. The hiring
process is conducted by the Human Resource (HR) Department.
2.4.1.1 Recruitment Process
Job vacancies will be posted in our website and other job-related websites. Also,
vacancies can also be found in newspapers.
2.4.1.2 Selection Process
The procedures for hiring an employee are as follows:
1. Recruitment - Beyond passive recruitment via job posts, the hiring staff should seek
out qualified candidates via social media, and industry events. This will ensure that
some applications from potential candidates who are not actively searching for new
jobs but who may be perfect for the role are received.
2. Applicant screening - As job applications arrive by email, the hiring staff reviews
résumés/CVs and cover letters based on the criteria established in the planning step.
Unqualified candidates’ applications are withdrawn from the applicant pool.
Qualified candidates are informed of next steps beginning with a screening
interview.
3. Screening interview - Initial interviews with applicants are personal talk with HR
representatives. These interviews determine if applicants have the qualifications
needed to do the job and serve to further narrow the pool of candidates. HR may
also explain the interviewing process during this step.
4. Interviews - Depending on the size of the selection committee, several interviews
are scheduled for each candidate. Interviews are typically in-person, one-on-one

51
interviews with applicants and the hiring manager and focus on applicants’
experience, skills, work history, and availability.
5. Applicant talent assessment - Before, during, or after interviews, hiring staff often
assign applicants one or more standardized tests to assess personality type, talent
(also called pre-employment tests), physical suitability for the job, cognition
(reasoning, memory, perceptual speed and accuracy, math, and reading
comprehension), and/or emotional intelligence. Some organizations also require
applicants to take tests or complete assignments to demonstrate professional skills
applicable to the open position.
6. Background check - One of the final steps prior to making a job offer is conducting
background checks to review candidates’ criminal record, to verify employment
history and eligibility, and to run credit checks. Some organizations also check
social media accounts (Facebook, Twitter, etc.) to make sure potential employees
are likely to represent the company in a professional manner. Drug testing may also
be warranted.
7. Decision - The hiring staff confers and evaluates applicants based on the interviews,
job experience, skills and talent assessments, and all other relevant information
(recommendations, e.g.). A top choice should be identified and agreed on. A backup
candidate selection should be made, as well. If no candidates meet the hiring
criteria, the hiring process should start over.
8. Reference checks - Once a candidate has been selected for the position, his or her
professional references should be contacted. Reference checks can verify

52
candidates’ employment details including job performance, strengths, and
weaknesses. A typical question to ask references is “Would you rehire this person?”
9. Job offer - Offering the job includes providing an offer letter stating the position’s
salary, start date, and other terms and conditions of employment that are based on
the agreement between the company and the candidate. It should be clear that the
candidate understands the terms of the offer. The candidate may agree and sign,
initiate negotiations (typically focusing on salary), or turn down the offer.
10. Hiring - Once the candidate accepts the job offer, he or she is hired. This kicks off a
phase of filling out and filing paperwork related to employment including eligibility
to work forms, tax withholding forms, and company specific forms.
11. Onboarding - A comprehensive onboarding process is a crucial step in the hiring
process. This should involve making the new employee feel welcome even before
he or she officially joins the organization. Preparing his or her workspace,
providing necessary access credentials for work applications and networks, and
outlining an orientation and training schedule can significantly speed up the new.
2.4.2 Training Policy
The company believes that training their employees would give them a better
return in the process. It is because it promotes effective and efficient performance of their
jobs. The company should try to find out what outcomes they would want in order for
them to come up with a better plan. They need to take in to account the company’s
policy, goals and objectives to avoid conflicts.

53
As the training progresses, they should record it and tally results. They could link
the results to the employee’s behavior and performance and they may assess them well
and give them better feedback on it. All employees that would participate would be
compensated. Both parties are benefited in this as they both would yield a positive result.
2.4.3 Performance and Evaluation Policy
The company will be conducting a monthly evaluation of the performance of its
employees. The evaluation will be sent by the employee’s corresponding superior to the
department head. Then they would send it to the Human Resource Department. The HR
Department would now assess and analyze the evaluation sent to them.
Employees with positive results would be given their corresponding
compensation as a return in their good performance.
This kind of policy encourages employee to raise their efforts in order to yield a
good performance which would then translate to the betterment of the company.
2.4.4 Promotion Policy
Promotion is the advancement of an employee within a company position or job
tasks. A job promotion may be the result of an employee's proactive pursuit of a higher
ranking or as a reward by employers for good performance. Typically, it is also
associated with a higher rate of pay or financial bonus.
The following criteria should be met in order to gain a promotion:
 Overall employee performance
 Efficiency in their performance
 Above target quotas

54
 Workplace attitudes and behavior
 Length of Service
2.4.5 Work Schedule Policy
Regular Working Hours shall be eight (8) hours a day or forty (40) hours a week
from Monday to Friday, for all employees. To add, employees are allowed to have an in-
between break of one (1) hour at 12:00 in the afternoon until 1:00 PM.
2.4.6 Holidays
The company shall observe the following holidays:
New Year’s Day January 1
New Year’s Holiday January 2
Chinese New Year February 16
Maundy Thursday March 29
Good Friday March 30
Black Saturday March 31
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
Eid’l Fitr June 15
Ninoy Aquino Day August 21
National Heroes Day August 31
All Saints’ Day November 1.

55
All Souls’ Day November 2
Bonifacio Day November 30
Christmas Eve December 24
Christmas Day December 25
Rizal Day December 30
New Year’s Eve December 31
2.4.7 Contract and Confidentiality Agreements
The contract shall include:
a. Scope of services
It lists the fullest range of services that may be provided, and then items
are struck through if they are not being provided within the fee it also includes a
list specifically setting out services that will not be provided.
b. Terms of the contract
It is a written agreement which explicitly states a fixed duration that the
contract will be in effect. The signing parties are obligated to adhere to the terms
and conditions within the contract until the expiration, or end date, of the contract.
c. Terms of payment
Conditions of payment agreed between the two parties for goods sold or
services rendered.

56
d. Obligation of each party
Contract obligations are those duties that each party is legally responsible
to perform under a contract agreement. The obligation is either a type of service
one has to perform, a payment that has to be made, or any other promise made to
the other party. If either party fails to perform their contractual obligation
according to the terms of the contract, the other party can bring a claim for breach
of contract. Depending on the results of the risk assessment, various additional
controls should be embedded or referenced within the contract, such as:
 Legal, regulatory and other third part obligations such as data
protection/privacy laws, money laundering etc.
 Information security obligations and controls.
2.4.8 Salaries and Wages
To ensure internal equity, starting salaries are determined based on the applicant’s
prior experience and/or education directly related to the position. In accordance to the
law, the company will pay its employees on the 15th and 30th day of the month. On the
other hand, the salary for the 16th to the 30th or the 31st of the current month will be paid
on the last day of the month. Salaries and wages of employees cover the following:
 The standard day’s work known as regular time is 8 hours a day on weekdays or
40 hours a week.
 Payment of overtime work (at least 25% of the employees’ regular wages)

57
 Under time work on any particular day shall not be offset by overtime work or
any other day.
 Permission given to the employee to go on to leave on some other day of the week
shall not exempt the employer from paying the additional compensation required.
 There will be no production during regular holidays.
 Added payment during rest day or holiday.
2.4.9 Attendance Policy
The company uses biometrics in monitoring the attendance of the employees the
workers will let the machine to scan their fingerprint to record their attendance. Failure to
record shall mean absence.
An employee who is absent from work and does not notify his supervisor for three
consecutive days may be considered to be absent without official leave (AWOL).
Employees who violate company’s attendance policy for three or more times within a 30-
day period may be subject to a Human Resource Manager’s disciplinary probation or
dismissal.
Employees will be given an identification card and must be worn at all times
during office and factory hours.
2.4.10 Tardiness
As stated in chapter 3 of the article 94 of the labor code of the Philippines, an
employee is encouraged to be ready in his workplace ten (10) minutes before his starting
time to prepare for his work. Tardiness recorded exceeding 10 minutes which is

58
unexcused shall be equivalent to an hour deduction from his wage. Three (3) records of
tardiness shall be equivalent to one (1) absence.
2.4.11 Under time or early leave
Under time shall mean leaving from work earlier than his work schedule. Early
leave to be incurred by an employee shall be subject to the approval of his immediate
supervisor. It shall also be deducted from his salary.
2.4.12 Absences
Absences shall mean any failure to report for work for at least one (1) whole
working day for any cause whatsoever. It may be excused or unexcused. However, it
shall be always be avoided to avoid disruption of business operation.
In case of absence without permission because of unexpected, urgent and valid
reason, an employee must inform his immediate supervisor before the start of working
hours and relay reasons for said absent without leave.
An employee who wishes to be absent must submit the official leave from one (1)
day before the intended date of absence in order to get the approval of immediate
supervisor.
An employee shall submit an official leave report to his immediate supervisor on
the first working day after his absence. Failure to submit shall mean absence subject to
disciplinary action. If the report indicates a false reason, he will also be subject to a
disciplinary action.

59
2.4.13 Employee Misconduct
Unauthorized copying, use, selling or importation of products may be subject to
civil and criminal liability. Theft is prohibited. Taking home of office supplies or stealing
any property of the company is forbidden. Lying to clients, co-workers, supervisor is
intolerable. Lying to the public or falsifying reports can even put the organization’s
health and safety at risk. Any form of harassment is strictly prohibited. An orientation
about harassment is implemented by the organization.
2.4.14 Forms of violation
2.4.14.1 Violations regarding attendance
OFFENSE SANCTION
Absence without Official Leave (AWOL) 1st Offense – Written warning

2nd Offense – 3 days suspension without
pay
3rd Offense – Dismissal
Habitual Absence 1st Offense – Written warning

pay
Abandonment of work 1st Offense – Written warning

pay
1st Offense – Written warning

Unexcused tardiness or early leave 2nd Offense – 3 days suspension without
pay

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2.4.14.2 Violations regarding uniform
OFFENSE SANCTION
1st Offense – Oral warning

Improper or non-usage of uniform 2nd Offense – Written warning
3rd Offense – 3 days suspension without
pay

Improper or non-usage of safety gears 2nd Offense – Written warning
pay

Unpinned Identification Card 2nd Offense – Written warning
pay
2.4.14.3 Violations regarding work standards
OFFENSE SANCTION
Unauthorized obtaining or spending of

1st Offense – Dismissal
money from customers
Falsification of official document

1st Offense – Dismissal
Unauthorized use of company telephone 1st Offense – Oral warning

2nd Offense – Written warning
and computer for personal use 3rd Offense – 3 days suspension without
pay
Unauthorized bringing of materials and/or 1st Offense – 5 days suspension without

pay plus payment for stolen
supplies outside company premises materials/supplies

61
1st Offense – 7 days suspension without

Unauthorized use of company vehicle pay

Major or habitual commitment of error
pay plus undergo training

Loitering and littering
pay

Smoking inside the premises
pay
Disrespect to co-employee, management 1st Offense – Oral warning

and customers 3rd Offense – 10 days suspension without
pay
Provoking or participating in any fight

during work hours inside and outside the
pay
2nd Offense - Dismissal
company’s premises
Grave Misconduct 1st Offense – Dismissal
Dishonesty 1st Offense – Dismissal

62
Disclosing or misusing confidential or
classified information officially known to
him by reason of his office and not

1st Offense – Suspension for six (6)
available to the public, to further his
months and one (1) day to one (1) year
2nd Offense – Dismissal
private interests or give undue advantage
to anyone or to prejudice the public
interest
Conduct Prejudicial to the Best Interest of 1st Offense – Suspension for six (6)
months and one (1) day to one (1) year
the Service 2nd Offense – Dismissal
Violation of Reasonable Office Rules and 1st Offense – Reprimand

2nd Offense – Suspension for one (1) to
Regulations thirty (30) days
Criminal offenses like fraud,

1st Offense- Dismissal and the company
embezzlement, tax evasion, money will file a suit
laundering, etc.

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2.4.15 Disciplinary Actions
2.4.15.1 Oral/ Verbal Warning
Verbal warning is a form of warning given orally by the management, when a
person breaches certain norms or policies in the organization. Verbal warning is a
disciplinary action towards employees who have done some wrong work or malpractice.
This is an opportunity where the person concerned is given a chance to rectify his
behavior. Even though the employer is “only” giving a verbal warning, it is still part of a
formal disciplinary process and the principles of natural justice, fair procedures, and
fairness would apply at all times.
2.4.15.2 Written Warning
A written warning is resorted to when a verbal warning has failed to produce the
desired result, therefore necessitating stricter action, or if the offense for which a verbal
warning was issued has been repeated or if there have been repeated offenses of other
misconduct, or if the offense (even a first offense) is considered serious enough to
warrant disciplinary action stricter that a verbal warning.
2.4.15.3 Suspension without pay
Suspension from work, without pay (unpaid suspension), is the temporary
removal of an employee from performing his/her work duties and from receiving pay, as
a disciplinary measure.

64
2.4.15.4 Dismissal
It is an employee’s departure from the job; the termination of the contract of employment
of an employee by his or her employer in a correct, fair, and lawful manner for a reason
which is the fault of the employee.
2.4.16 Procedural Due Process
Procedural due process means the right of employee to be notified of the reason
for his or her dismissal and, in case of just causes, to be provided the opportunity to
defend himself or herself.
The four-step procedure before punishment due to violation of rules and
regulations will be implemented:
a. A report must be submitted to an immediate head by an employee when there is
an irregularity in job performance or violation of rules and regulations
b. The designated head shall conduct further investigation to prove the accuracy
of the said report.
c. Once facts are gathered, the designated head shall submit his/her investigation
to the top management.
d. A due punishment shall enforce once the employees is proven guilty.
2.4.17 Termination or Resignation of Employee
Employees may voluntarily resign or terminate their employment from the
company for any reason. This is done by serving a written notice of intent to resign to an
immediate supervisor at least one month or 30 calendar days in advance for proper
turnover of tasks and duties. Failure to provide appropriate written notice may result in

65
being considered ineligible for the company and may hold the resigning employee liable
for damages. Although, there are instances where an employee will not give notice in
such instances of maltreatment and other analogous causes. All employee separations will
be handled in a professional manner. Every departing employee is encouraged to contract
an immediate response or form from the Human Resource Department to request a
confidential in-person exit interview. The opinions of departing employees are helpful to
the company’s continuous attempt to improve. If an in-person exit interview is not
conducted, the company will send an exit interview survey to departing staff employees
for their voluntarily completion and return. This would be mutually favorable on both
sides.
2.4.18 Recognition Policy
The company encourages the recognition of excellent performance and
achievement through the use of rewards to its employees. Recognition shows how
valuable and how beneficial employees are in attaining company’s mission and goals. An
established standard should be the basis in giving out incentives which is evidenced by a
certificate and cash bonuses. It must be approved by CEO and the value will depend on
the discretion of the immediate head.
2.4.19 Employee Benefits
2.4.19.1 Social Security System (SSS)
The Philippine Social Security System is a state-run, social insurance program in
the Philippines to workers in private, professional, and informal sectors. SSS members
can make 'salary' or 'calamity' loans. Salary loans are calculated based on a member's

66
particular monthly salary credit. Calamity loans are for instances when the government
has declared a state of calamity in the area where an SSS member lives, following
disasters such as flooding and earthquakes. Covered employees are entitled to a package
of benefits under the Social Security and Employee’s Compensation (EC) programs in
the event of death, disability, sickness, maternity and old age. Basically, the SSS provides
for a replacement of income lost on account of the aforementioned. The benefits under
the Social Security System are Sickness, Maternity, Disability, Retirement, Death and
Funeral.
2.4.19.2 Philippine Health Insurance (PhilHealth)
The Philippine Health Insurance Corporation is a tax-exempt, government-owned
and controlled corporation (GOCC) of the Philippines and is attached to the Department
of Health. Its stated goal is to ensure a sustainable national health insurance program for
all. Here are some benefits from PhilHealth: Outpatient Benefits, TSEKAP, Mother and
Child Benefits, Z benefits and MDG Benefits. Most Filipinos are not aware that
PhilHealth benefits extend to outpatient procedures. You can easily curb expensive
healthcare costs and save money by taking advantage of outpatient benefits from your
PhilHealth membership. Here are some five of them: Day Surgeries, Radiotherapy,
Hemodialysis, Outpatient Blood Transfusion, and Primary Care Benefits (PCB1).
2.4.19.3 Pag-IBIG Fund
The Home Development Mutual Fund (abbreviated as HDMF), more popularly
known as the Pag-IBIG Fund, is a Philippine government-owned and controlled
corporation under the Housing and Urban Development Coordinating Council

67
responsible for the administration of the national savings program and affordable shelter
financing for Filipinos employed by local and foreign-based employers as well as
voluntary and self-employed members. It offers its members short-term loans and access
to housing programs. The three basic benefits you can get from being a member of Pag-
IBIG are Housing Loan, Short Term Loan, and Provident Savings.
2.4.19.4 Thirteenth Month Pay
The thirteenth-month pay is equivalent to the monthly basic compensation
received by the administrative employee, computed prorate according to the number of
months within a year that the employee has rendered its service. It should be paid not
later than December 24 of each year.
2.4.19.5 Fringe Benefits
Fringe benefit is a special form of benefits provided for the employees on in
addition to their salaries and wages. It means any good, service, or other benefit furnished
or granted in cash or in kind by an employer- corporate or sole proprietor, to an
individual employee. Hereunder are the sample fringe benefits that may be provided to
the employees: housing, expense account, vehicle of any kind, housing personnel, interest
on loan, membership fees, etc. Fringe benefits provided to managerial supervisory
employees are subject to 32% fringe benefit tax and will with withhold and pay the same
as an employer.
2.4.19.6 Employee Leaves
Every employee is entitled to leave of absence from employment. The Philippine
Labor Code and other special law mandate certain leaves that an employer of a company

68
should extend to an employee. The following leaves mentioned below form part of the
employee’s statutory benefits:
2.4.19.6.1 Vacation Leave
It is a permission given to an employee to take a leave with pay. All regular
employees shall receive five (5) days paid vacation. Unused leave credits are non-
cumulative and shall be forfeited after the end of year.
2.4.19.6.2 Sick Leave
An employee is granted a sick leave to give time to recuperate and function
efficiently when he/she gets back in operation. For them to be eligible, they must have
genuine illness and at least one (1) year of service to be entitled with such. A regular
employee is to receive ten (10) days of sick leave. Unused sick leave credits are not
convertible to monetary value at the end of each year. Application for sick leave shall be
filed upon return to work, can be filed in advance or exceeding five (5) days accompanied
by a medical certificate.
2.4.19.6.3 Maternity Leave
Every employer shall grant to any pregnant woman employee who has rendered
an aggregate service of at least six (6) months for the last twelve (12) months, maternity
leave of at least two (2) weeks prior to the expected date of delivery and another four (4)
weeks after normal delivery with full pay based on her regular or average weekly wages.
The maternity leave shall be extended without pay on account of illness medically
certified to arise out of the pregnancy, delivery, abortion or miscarriage which renders the

69
woman unfit for work. The maternity leave stated here shall cover only the first four (4)
deliveries.
2.4.19.6.4 Paternity Leave
The law provides for paternity leave of seven (7) days with full pay to all married
male employees in the private and public sectors. It is only available for the first four
deliveries of the legitimate spouse with whom the employee is cohabiting.
2.4.19.6.5 Funeral Leave
All regular employees shall be entitled to leave with pay upon the death of his/her
spouse or child, parent, or brother or sister for five (5) days.
2.4.20 Illegal Drugs and Alcohol
To provide all employees with a safe, healthy and secure workplace, all
employees are expected to work in an unimpaired, alert physical and mental condition.
To help meet this goal, the factory prohibits the use of or possession of illegal drugs and
alcoholic beverages on factory property during working hours. The company has an
obligation to ensure that its employees are free from any form of drugs and/or alcohol
abuse.
2.4.21 Smoking Policy
The company strictly prohibits employees from smoking within factory premises.
Smoking is prohibited in factory vehicles and on factory grounds. To protect and enhance
the company’s indoor air quality and to contribute to the health and well-being of all
employees, the company shall be entirely smoke-free effective.

70
2.4.22 Dress Code Policy
All employees are required to observe the rules on proper office attire from
Mondays through Fridays. Office employees are required to wear appropriate and decent
semi-formal attire during working days. Factory workers are required to wear appropriate
attire during working hours such as company t-shirt, and black pants to observe sanitation
in the working area. The company provides hairnets, goggles and gloves for factory
workers.
2.4.23 Telephone and Computer Policy
Cellphone usage for personal usage is not permitted during work hours with the
exception during lunch break and as permitted by the superiors. In case of unavoidable
personal calls, it should be made within the shortest time possible. When it comes to
answering business-related telephone calls, employees must answer professionally and
promptly, project a friendly tone and provide a quick orientation for the caller. All calls
should be answered immediately. When it comes to the use of computer, it should always

71
be for business purposes. Any employee who gets caught using social networking sites
will be subject to disciplinary action.
2.4.24 Employment Classification
2.4.24.1 Probationary Employees
Upon hiring, a probationary employee shall undergo a week orientation in which
he is to be introduced to his new workplace, familiarized of his duties and
responsibilities, observe the regular employees, proper training and perform duties
independently.
2.4.24.2 Regular Employees
After employee undergone the hiring process and completed the orientation, he
will start working on his designated job. He is directly compensated every 15th and 30th
of the month for his job done. In addition to their wages, they often receive benefits
subsidized health care, paid vacations, holidays, sick time, or contributions to a
retirement plan.
2.4.24.3 Outsourced employee
Through subcontracting agreements, the company decided to outsource security
agency to perform specific tasks in the value-chain on its behalf. In this case, the agency
is the one who will provide for their employee benefits.

72
2.4.25 Salaries
2.4.25.1 Monthly Salaries

Job Description No. of Workers Basic Salary Total
President 1 PHP 80,000 PHP 80,000
Executive secretary 1 PHP 25,000 PHP 25,000
General manager 1 PHP 40,000 PHP 40,000
Production manager 1 PHP 35,000 PHP 35,000
Production workers 6 PHP 12,000 PHP 72,000
Machine mechanic 1 PHP 12,000 PHP 12,000
Chemist 1 PHP 20,000 PHP 20,000
Marketing Manager 1 PHP 35,000 PHP 35,000
Marketing Staff 2 PHP 30,000 PHP 60,000
Accounting Head 1 PHP 37,500 PHP 37,500
Accounting Staff 1 PHP 20,000 PHP 20,000

Human Resource
Manager 1 PHP 32,000 PHP 32,000
Logistic Manager 1 PHP 18,000 PHP 18,000
Company Driver 1 PHP 14,000 PHP 14,000
Company Helper 1 PHP 12,000 PHP 12,000
Warehouse Manager 1 PHP 30,000 PHP 30,000
Utilities 3 PHP 12,000 PHP 36,000

25 PHP 578,500

73
2.4.25.2 Projected Salaries
Job Description 2019 2020 2021 2022 2023

President 960,000.00 960,000.00 979,200.00 979,200.00 998,784.00
Executive 300,000.00 300,000.00 306,000.00 306,000.00 312,120.00
Secretary
General Manager 480,000.00 480,000.00 489,600.00 489,600.00 499,392.00
Production 420,000.00 420,000.00 428,400.00 428,400.00 436,968.00
Manager
Production 864,000.00 864,000.00 881,280.00 881,280.00 898,905.60
Workers
Machine 144,000.00 144,000.00 146,880.00 146,880.00 149,817.60
Mechanics
Chemist 240,000.00 240,000.00 244,800.00 244,800.00 249,696.00
Marketing 420,000.00 420,000.00 428,400.00 428,400.00 436,968.00
Manager
Marketing Staff 720,000.00 720,000.00 734,400.00 734,400.00 749,088.00
Accounting Head 450,000.00 450,000.00 459,000.00 459,000.00 468,180.00
Accounting Staff 240,000.00 240,000.00 244,800.00 244,800.00 249,696.00
Human Resources 384,000.00 384,000.00 391,680.00 391,680.00 399,513.60
Manager
Logistic Manager 216,000.00 216,000.00 220,320.00 220,320.00 224,726.40
Company Driver 168,000.00 168,000.00 171,360.00 171,360.00 174,787.20
Company Helper 144,000.00 144,000.00 146,880.00 146,880.00 149,817.60
Warehouse 360,000.00 360,000.00 367,200.00 367,200.00 374,544.00
Manager
Utilities 432,000.00 432,000.00 440,640.00 440,640.00 449,452.80
Annual projected salaries shown in the table are monthly salaries multiplied to the
corresponding number of needed employees per position. By the year 2021, the company
will give all employees two percent (2%) increase in their annual salaries. Another
increase of two percent two percent (2%) will occur in the year 2023.

74
2.4.26 Strategic Plan
YEAR 2019
PROPOSED KEY PER LEAD
TIMELINE OBJECTIVES BUDGET
ACTIVITY INDICATORS PERSON
To be Conducting
recognized as advertisement Achieve brand
one of the using social awareness in Marketing
P40,000
organic lotion media, all target Manager
manufacturer newspapers, location
in Cavite and tarpaulin
Negotiating
60% of the
with Marketing
population of
Introduce the distributors, Manager
our target
product in the wholesalers, and P30,000
January market will
market and retailers Logistics
to notice our
for selling Manager
December advertisement
product
To gain funds To sell the
for operations Selling of remaining Top
P10,000
and Stocks unsubscribe Management
improvements stocks
To expand the
Achieve brand
number of
Monthly awareness in
people that Marketing
implementation all target P250,000
will notice the Manager
of CSR location and
product
other areas

75
YEAR 2020
Contracting Increase in
Marketing
To introduce more market share
Manager
the product in distributors, ration and P200, 000
and logistics
the market wholesales, increase
manager
and retailers profit.
To expand the
Conducting Achieve brand
January number of
advertisement awareness in
to people that Marketing
and Monthly all target P350,000
December will notice the manager
implementation location and
product
of CSR other areas

P10,000
improvements stocks
YEAR 2021
Contracting
Marketing
To introduce more
Increase in Manager
the product in distributors, P200,000
January market share and logistics
the market wholesales,
to ration by 10% manager
and retailers
December and increase
Increase
To increase profit. Production
production by P100,000
profit manager
10%

76
To expand the Conducting Achieve brand

number of advertisement awareness in
Marketing
people that and Monthly all target P400,000
manager
will notice the implementation location and
product of CSR other areas
January
to P10,000
December
improvements stocks
YEAR 2022
Contracting Increase in
Marketing
To introduce more market share
Manager
the product in distributors, ratio and P200,000
and logistics
January the market wholesales, increase
manager
to and retailers profit.
December To expand the Conducting Achieve brand
number of advertisement awareness in
Marketing
people that and Monthly all target P450,000
manager
will notice the implementation location and
product of CSR other areas
January
to P10,000
December
improvements stocks

77
YEAR 2023
KEY PER
TIMELIN OBJECTIVE PROPOSED LEAD
INDICATOR BUDGET
E S ACTIVITY PERSON
S
Contracting
Marketing
To introduce more
Manager
the product in distributors, Increase in P200, 000
and logistics
the market wholesales, market share
manager
and retailers ration and
increase
Increase
To increase profit. Production
production by P100,000
profit manager
10%
Achieve
To expand Conducting
January brand
the number of advertisement
to awareness in Marketing
people that and Monthly P500,000
December all target manager
will notice implementatio
location and
the product n of CSR
other areas
To sell our To meet
Production of Production P3,000,00
product in the existing
Lotion Manager 0
market demand
To gain funds
To sell the
for operations Top
Selling of remaining
and Managemen P10,000
Stocks unsubscribe
improvement t
stocks
s
To increase To purchase To double the
Accounting
January Delivery additional delivery P700,000
Head
Capacity trucks to raise Capacity

78
delivery within the

capacity and market
meet
increasing
demand

79
CHAPTER 3
TECHNICAL ASPECT
The Technical study discusses how the products are to be produced, when these
products are to be produced, how much it will cost to produce the products, where to
produce and what technology to be used.
3.1 Business Location
3.1.1 Brief History of Trece Martires Cavite
Trece Martires, officially the City of Trece Martires
(Tagalog: Lungsod ng Trece Martires), or simply
known as Trece Martires City, is a 4th class city and
the de facto capital city of the province of Cavite,
Philippines. According to the 2015 census, it has a
population of 155,713 people.
The city was the provincial capital until President Ferdinand Marcos transferred it
to the City of Imus on June 11, 1977. Despite of the capital relocation, the city still hosts
many offices of the provincial government. According to the 2015 census, it has a
population of 155,713 people, and an income classification of 1st class.
The city was named after the Thirteen Martyrs of Cavite, a group of prominent
Caviteños who were convicted of rebellion and executed by the Spanish colonial
government on September 12, 1896 in the old port city of Cavite during the Philippine
Revolution.

80
3.1.2 Land Details
A commercial lot along Conchu Road, Brgy. Conchu, Trece Martires City, Cavite
owned by Benchito P. Neri, married to Caroline A. Neri. The land area is 1000 square
meters, valued at P2,000 per square meter subject for sale, amounting to P2,000,000.
Trece Martires City is a 4th class and the de facto capital city of the province of Cavite,
Philippines. Trece Martires is becoming an important player in Cavite’s real estate
industry because Commercialism and Industrialization are rampant nowadays, replacing
agriculture as the major economic activity. See appendix XXXVI – Tax Declararion of
Real Property for supporting details.
3.1.3 Vicinity Map

81
3.1.4 Actual Location

82

83
3.1.5 Building and Facilities Layout

3.1.5.1 Building

84
3.1.5.2 Office, Warehouse and Factory

85
3.2 Product Description
3.2.1 Product/Company Logo
3.2.2 Product
Kakawate or most commonly known as madre cacao is considered to be the
second most important multi-purpose legume tree. It is used by many as a mosquito
repellent and medicine for itchiness and redness of our skin.
Madre Cacao leaves contain anti-bacterial and antioxidant benefits that help
defend your cells from damage. That is the reason why we proposed this product to the
market, who knew that Madre Cacao offers so many health benefits. Our product which
is a Madre Cacao lotion is herbal preparation which contains essential oils derived from
the Madre Cacao leaves. It is a product that is useful in our daily lives. It contains anti-
bacterial, powerful antioxidants which offer sublime anti-aging benefits, phytochemicals
and moisturizing properties. It penetrates deep into the epidermis to insure protection,
promote elasticity and improves suppleness. It clarifies, nourishes, soothes and hydrates
the skin. This lotion makes a perfect addition to all the other natural lotion products out
there. It can be used in day and at night.

86
3.2.2.1 Bottle Description

6.1 cm
Capacity: 100ml
Material: Low-density polyethylene (LDPE)
Color: Natural White
Cap: Fliptop
15.4 cm
3.7 cm
3.2.2.2 Label

87
3.2.3 Raw Materials
RAW
SUPPLIERS PRICES QUANTITY
MATERIALS
Madre Cacao Sogomi Corporation

P950.00 1 Liter
Extract
Joys Organics P850.00 1 Liter
Akhil Healthcare Private

P1,050.00 1 Kilogram
Emulsifying Wax Limited
Joys Organics P1000.00 1 Kilogram
Gomoswa International P170.00 1 Liter
Glycerin
Olive Oil Hasmitha Enterprise P114.68 1 Liter
Bo
P1097.16 1 Kilogram
Lavender Oil International
Joys Organics P3,600.00 1 Liter
Lotion Crafter P648.00 1 Pound
Phenoxyethanol
Yangzhou Guanyu Plastic
Plastic Container P3.70 1 Piece
Tube Co., Ltd.
The company decided to have at least two suppliers on some of the raw materials
stated above so that there will be a back-up supplier just in case any unforeseen and
unfavorable situations shall occur. Suppliers who offered a lower price are prioritized in
making orders.

88
3.2.4 Formula
Per day: 250 batches/250,000ml

Raw Materials Percentage Quantity
Water 60% 1500g
Madre Cacao Extract 15% 375g
Olive Oil 13% 325g
Emulsifying Wax 6% 150g
Glycerin 4% 100g
Phenoxyethanol 1% 25g
Lavender Oil 1% 25g
Total 100% 2500g
3.2.5 Machineries
MACHINERIES
Cosmetic Making
Emulsfying Mixer
Machine
PHP
This will be used for
324,000.00
mixing all of the
ingredients needed for
lotion making.
Capacity: 500L
Automatic lotion/liquid
soap bottle filling
machine
PHP
This will be used for filling 529,200.00
lotions into the designated
containers.
Capacity: 40 Bottles/Min

89
Industrial Labeling
Machine
PHP
This will be used for 441,126.00
putting label on lotion
containers.
Capacity: 50 Bottles/Min
3.2.5 Operating Requirement
CATEGORY GROSS AMOUNT

Office Equipment PHP 447,517.63
Delivery Equipment PHP 1,116,071.43
Warehouse Equipment PHP 81,565.85
Pantry Equipment PHP 23,389.29
Laboratory Equipment PHP 26,923.88
Machineries PHP 1,155,648.21
Building PHP 7,142,857.14
Land PHP 1,785,714.29
Pre-operating Cost PHP 614,960.00
Working Capital PHP 890,352.00
Input Vat PHP 1,445,859.43
TOTAL PHP 15,000,000.00
3.3 Time and Motion Study
PROCESS TIME
PROCUREMENT OF MATERIALS
I a) Ordering of Madre Cacao leaves 7-15 Days
b) Ordering of other ingredients
SANITATION OF CONTAINERS AND
EQUIPMENT
II 1 Hour
PREPARATION OF INGREDIENTS AND
MACHINERIES

90
MIXING INGREDIENTS
a) Madre Cacao Extract
b) Essential Oils
III c) Glycerin 2 Hours
d) Emulsifying Wax
e) Phenoxyethanol
IV COOLING 2 Hours
BOTTLING
V LABELLING 3 Hours
PACKAGING
VI DELIVERY
3.4 Production Process Chart
SANITATION OF ADDING AND

PROCUREMENT
CONTAINERS MIXING OTHER
OF MATERIALS
AND EQUIPMENT INGREDIENTS
LABELING BOTTLING COOLING
PACKAGING DELIVERY
3.4.1 Procurement process
The process for ordering will start when the operations manager contact the
supplier regarding the delivery through phone. When orders have been made, the supplier
will now provide the date and time of the arrival of raw materials. Supplier’s delivery

91
vehicle will be arriving and raw materials will be received from the loading dock and
stored in the storage.
3.4.2 Sanitation of containers and equipment
Workers will be using hot water electric pressure washer and clean cloth to
sanitize containers and other equipment. Disinfecting of machineries, containers and
equipment will be done every morning before operations.
3.4.3 Mixing and adding other ingredients
All ingredients will now be put in the mixer for 2 Hours. Formula based
measurement of all ingredients will be put in the mixer for 2 hours, it will be heated and a
stir bar inside the machine will spin very quickly, thus stirring it.
3.4.4 Cooling
The produced lotion will be stored in a cool dry place until is temperature matches
the room temperature. It is necessarily done to avoid the build-up of moisture, bubbles
and mold in the lotion.
3.4.5 Bottling, Labeling and Packaging
This will be done by automated machine bottle filler. The 100ml containers will
go through the machine and automatically fills the container with the appropriate amount
of lotion.
Bottles will be put in the labeling machine to have adhesive labels attach to each
bottle; workers assigned will now put them in boxes.

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3.4.6 Delivery
When bottles are labeled and put into boxes. It is now ready for delivery to
dealers.
3.5 Production Capacity
Verdeganicum Incorporated is starting with an output of 2500 bottles of lotions
per day. Production of lotion will cover the rest of the year 2019. The whole process can
approximately produce a total of 312 bottles/hr. Projected monthly production is at 5000
liters of lotion to be filled in 100ml bottle containers. This makes 600,000 bottles of
lotion in the first year at 50% capacity at the beginning of production. By the year 2021,
10% increase in production will occur; it will result to 660,000 bottles of lotion to be
made. Another 10% increase will occur by the year 2023, and produce 726,000 bottles.
3.6 Gantt Chart
2018
ACTIVITIES Aug Sept Oct Nov Dec
Filing of Legal Requirements
Selling of Stocks
Plant Layout
Construction of Facilities
Purchasing of Furniture, equipment and
machineries
Setting of furniture, equipment and
Machineries
Setting Final Rules and Regulations
Hiring and Orientation of Employees
Advertisement of the Business
Final Preparation
Filling of legal requirements are to be accomplished by August 2018. Selling of
stocks will start on August 2018 as well and will continue until the end of the year. After

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designing the plant layout, the construction of building will also commence in the month
of August 2018. Followed by the purchasing and setting of furniture, fixtures, equipment
and machineries by October. On the same month, final rules and regulations will be set,
together with the commencement of hiring and orientation of new employees and
advertisement of the business until the end of the year.
2019
Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Opening of Verdeganicum
Incorporated
Advertisement
Production Process
Contracting more
distributors, wholesaler,
and retailers
Selling of Stocks
Implementation of CSR
The opening of Verdeganicum Incorporated will be on January 2019.
Advertisements, production, contracting of third parties, selling of stocks and
implementation of CSR will begin on January 2019 and will continue until the end of the
year.
2020
Advertisement
Production Process
Contracting more
and retailers
Selling of Stocks

94
Advertisements for the product as well as business operations, selling of stocks
and implementation of CSR will continue throughout the year 2020.
2021
Advertisement
Increase Production
Production Process
Contracting more
and retailers
Selling of Stocks
In the duration of the year 2021, advertisement will continue throughout the year
as well as the production operations, selling of stocks and implementation of CSR of the
company. The production of lotion will increase by 10% in the first 2 months and that
will be carried throughout the year.
2022
Advertisement
Production Process
Contracting more
and retailers
Selling of Stocks
Advertisements for the product as well as the business operations, selling of
stocks and implementation of CSR will continue throughout the year 2022.

95
2023
Advertisement
Increase Production
Production Process
Contracting more
distributors, wholesales,
and retailers
Selling of Stocks
Acquisition of additional
delivery vehicle
By the year 2023, advertisement, selling of stocks, production process and
implementation of CSR will continue throughout the year. Production of lotion will
increase by another 10% in the first 2 months; it will be also carried out throughout the
year. A delivery truck will be added to the company assets by the month of January 2023.

96
CHAPTER 4
MARKETING ASPECT
The marketing aspect in feasibility study provides information and analysis about
the demand for the proposed product within the market. Its main purpose is to assess the
feasibility of the proposed business.
4.1 Business Description
Verdeganicum Incorporated is a manufacturing and distributing business prepared
in producing organic lotion made from madre cacao leaves. It is built to distribute and
manufacture the organic lotion in commercial quantity and sell it to the customer. We
believe in providing the best skin care products possible. Our products are proudly free of
animal by-products, propylene glycol, sodium lauryl sulfates, harmful colorants and
fragrances, mineral oils, petroleum, and other harsh cosmetic chemicals. We are using
fresh madre cacao leaves to create products that contain potent healing and beautifying
properties.
Our company’s main purpose is to increase the production of organic lotion to
satisfy the needs of the customers. Verdeganicum Incorporated is to offer high quality of
organic lotion products at a penetrative price to meet the demand of the minimum to
average income local market area residents and tourists.
So while some global beauty brands may spread their resources across a number
of different departments and developments, Verdeganicum Incorporated is only interested
in creating the best line of organic lotion products possible.

97
4.2 Industry Profile and Analysis
In general, there are numerous reasons in favor of an investment in the industry of
natural and organic skin care, including body lotions, in the Philippine market. Our
country is one of the leading economies and global players characterized by a high
productivity, excellent workforce, innovation, superior infrastructure, attractive support
programs, a relatively stable investment environment, a high class living quality and
competitive rates of taxation.
The acceptance of organic products in Philippines is high; due to concern from
Philippines population with the environment – the consumption for “environmentally‐
friendly” products is becoming more and more important in our country. The market
prospects for this industry are very positive and major drivers are represented by an
increased distribution of mainstream retailers, a broadening consumer demand for natural
and organic skin care, demographic trends and a continuously increasing ideal of youth
and beauty. Also, the fact that the Philippine market has witnessed the largest number of
organic skin care product launches under private labels and own brands of supermarkets,
drug stores, organic food retailers and even discounters underlines a favorable trend that
is predicted to continue.
The organic lotion classification of the global skin care products market is
forecast to bank on the growing significance of natural ingredients that help to avoid skin
dryness, hydrate the skin, and improve skin quality. The use of organic ingredients could
draw a number of consumers to the body lotion skin care products market in the near
future. Natural ingredients not only improve the skin’s immune system but also carry

98
antioxidant properties. The organic lotion segment is further bifurcated into premium and
mass market body care lotions.
4.3 Demand and Supply
4.3.1 Survey Results
Out of 500 respondents within the company’s five (5) target locations in Cavite, these are
the data gathered.
4.3.1.1 Imus, Cavite Survey Results
100 RESPONDENTS OF IMUS
GENDER QTY. PERCENTAGE TOTAL QTY
MALE 50 50%
FEMALE 50 50% 100
AGE QTY. PERCENTAGE TOTAL QTY

FEMALE, 0-19 12 24%
FEMALE, 20-55 37 74%
FEMALE, 56 & ABOVE 1 2% 50
MALE, 0-19 14 28%
MALE, 20-55 31 62%
MALE, 56 & ABOVE 5 10% 50
OCCUPATION QTY. PERCENTAGE TOTAL QTY

MALE, STUDENTS 18 36%
MALE, EMPLOYEE 27 54%
MALE, UNEMPLOYED 5 10% 50
FEMALE, STUDENTS 25 50%
FEMALE, EMPLOYEE 21 42%
FEMALE, UNEMPLOYED 4 8% 50

99
MONTHLY INCOME QTY. PERCENTAGE TOTAL QTY

FEMALE, 0-10,000 33 66%
FEMALE, 10,001-20,000 15 30%
FEMALE, 20,001 & ABOVE 2 4% 50
MALE, 0-10,000 22 44%
MALE, 10,001-20,000 23 46%
MALE, 20,001 & ABOVE 5 10% 50
50 FEMALES OUT OF 100 RESPONDENTS OF IMUS
QUESTIONS PERCENTAGE TOTAL QUANTITY

1. Do you use lotion? (If YES NO RESULTS
"No" DO NOT answer
44 (88%) 6 (12%) 100%
any further)
QUESTION PERCENTAGE TOTAL QUANTITY

SYNTHETIC ORGANIC RESULTS
2. What type of lotion
do you use? 43 (98%) 1 (2%) 100%
3. What quantity of lotion do you avail?

50M 100M 150M 250M 300M 350M 400M 450M 500M 750M 1000
L L L L L L L L L L ML
0 21 5 9
2 2 1 0 4 0 0
(0% (48% (11% (20%
(5%) (5%) (2%) (0%) (3%) (0%) (0%)
) ) ) )
QUESTION PERCENTAGE
4. How much do you P500 AND
P100-199 P200-299 P300-399 P400-499
spend per purchase of ABOVE
lotion? 21 (48%) 12 (27%) 8 (18%) 1 (2%) 2 (5%)
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
5. How often do you MONTH TWO MONTHS
buy lotion?
14 (32%) 21 (48%) 9 (21%) 0%

100
QUESTION PERCENTAGE
6. For what reason do SKIN REPAIR FAIRNESS CLEANLINESS FRESHNESS
you make use of
lotion? Choose only 14 (32%) 7 (16%) 14 (32%) 9 (20%)
one.
7. According to you, rate the importance of the following benefits of lotions.

(1 = LEAST important, 5 = MOST important)
NO. 7 5 4 3 2 1
FRAGRANCE 12 14 4 8 6
SUN PROTECTION 18 18 8 0 0
MOISTURIZING 22 12 5 3 2
WHITENING 4 9 18 7 6
SKIN PROTECTION 29 8 3 1 3
8. What features of the following lotion appeal to you for making purchase? Choose only one.
EASY
PACKAGIN ADVERTISEMEN TEXTUR EFFECTIVENES
PRICE AVAILABILIT SMELL
G T E S
Y
6 0 4 13 0 1 20
(14%) (0%) (9%) (30%) (0%) (2%) (45%)
QUESTION PERCENTAGE
SOFT TOTTLE PUMP FLIP TOP
TUB OTHERS
9. What lotion TUBE BOTTLE BOTTLE
container do
you prefer? 28 (64%) 14 (32%) 2 (5%) 0 0
QUESTION PERCENTAGE
10. Where did DEPT. PHYSICAL
SUPERMARKET DRUGSTORE ONLINE
you buy STORE STORE
lotions in the
PAST THREE 31 (70%) 11 (25%) 1 (2%) 0 0
MONTHS?

101
QUESTION PERCENTAGE
YES NO
11. Are you aware of any organic lotion
out in the market? 3 (7%) 40 (93%)
QUESTION PERCENTAGE
YES NO
12. Are you willing to buy organic lotion
made from Madre Cacao leaves that has
anti-bacterial, antioxidant, and
43 (98%) 1 (2%)
moisturizing properties for a price of
PHP119 in 100ml container?
50 MALES OUT OF 100 RESPONDENTS OF IMUS

"No" DO NOT answer
39 (78%) 11 (22%) 100%
any further)

do you use? 34 (87%) 5 (13%) 100%

50M 100M 150M 250M 300M 350M 400M 450M 500M 750M 1000
2 25 6
2 3 1
(5% (64% (15% 0 0 0 0 0
(5%) (8%) (3%)
) ) )
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 22 (56%) 8 (21%) 5 (13%) 4 (10%) 0

102
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
11 (28%) 22 (56%) 6 (15%) 0
QUESTION PERCENTAGE
you make use of
one.

NO. 7 5 4 3 2 1
EASY
G T E S
Y
8 15 1 15
0 0 0
(21%) (38%) (3%) (38%)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 27 8 2 2
0
(69%) (21%) (5%) (5%)

103
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 33 (85%) 4 (10%) 0 1 (3%) 1 (3%)
MONTHS?
QUESTION PERCENTAGE
YES NO
QUESTION PERCENTAGE
YES NO
37 95%) 2 (5%)
4.3.1.2 Bacoor, Cavite Survey Results
100 RESPONDENTS OF BACOOR
MALE 50 50%
FEMALE 50 50% 100

FEMALE, 0-19 40 80%
FEMALE, 20-55 10 20%
MALE, 0-19 40 80%
MALE, 20-55 10 20%
MALE, 56 & ABOVE 0 0% 50

104

MALE, EMPLOYEE 0 0%

FEMALE, 0-10,000 42 84%
FEMALE, 10,001-20,000 6 12%
FEMALE, 20,001 & ABOVE 2 4% 50
MALE, 0-10,000 36 72%
MALE, 10,001-20,000 13 26%
MALE, 20,001 & ABOVE 1 2% 50
50 FEMALES OUT OF 100 RESPONDENTS OF BACOOR

"No" DO NOT answer
44 (88%) 6 (12%) 100%
any further)

do you use? 40 (91%) 4 (9%) 100%

50M 150 250 300 350 400 450 500 750 1000
100ML
L ML ML ML ML ML ML ML ML ML
3 28 1 4 2 2 2 1 1
0 0
(7%) (64%) (2%) (9%) (5%) (5%) (5%) (2%) (2%)
QUESTION PERCENTAGE
4. How much do you P100-199 P200-299 P300-399 P400-499 P500 AND ABOVE
spend per purchase of
lotion? 30 (68%) 8 (18%) 2 (5%) 2 (5%) 2 (5%)

105
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
11 (25%) 29 (66%) 4 (9%) 0
QUESTION PERCENTAGE
you make use of
one.

NO. 7 5 4 3 2 1
EASY
G T E S
Y
24 6
0% 1 (2%) 0 4 (9%) 9 (20%)
(55%) (14%)
In the table above, claimed that they use lotion for the reason of price, a 100% for the price.
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 31 (70%) 13 (30%) 0 0 0

106
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 24 (55%) 6 (14%) 5 (11%) 8 (18%) 1 (2%)
MONTHS?
QUESTION PERCENTAGE
YES NO
QUESTION PERCENTAGE
YES NO
42 (95%) 2 (5%)
50 MALES OUT OF 100 RESPONDENTS OF BACOOR

"No" DO NOT answer
any further) 44 (88%) 6 (12%) 100%

do you use? 39 (89%) 5 (11%) 100%
.
50M 100M 150 250 300 350 400 450 500 750 1000
L L ML ML ML ML ML ML ML ML ML
2 30 6
2 (5%) 1 (2%) 1 (2%) 1 (2%) 1 (2%) 0 0 0
(5%) (68%) (14%)

107
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 33 (75%) 7 (16%) 2 (5%) 2 (5%) 0
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
7 (16%) 34 (77%) 2 (5%) 1 (2%)
QUESTION PERCENTAGE
you make use of
one.

NO. 7 5 4 3 2 1
EASY
G T E S
Y
25
1 (2%) 0 0 3 (7%) 4 (9%) 11 (25%)
(57%)

108
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 33 (75%) 9 (20%) 1 (2%) 1 (2%) 0
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 28 (64%) 6 (14%) 3 (7%) 6 (14%) 1 (2%)
MONTHS?
QUESTION PERCENTAGE
YES NO
QUESTION PERCENTAGE
YES NO
39 (89%) 5 (11%)
4.3.1.3 Trece Martires, Cavite Survey Results
100 RESPONDENTS OF TRECE MARTIRES
MALE 50 50%
FEMALE 50 50% 100

109

FEMALE, 0-19 27 54%
FEMALE, 20-55 21 42%
MALE, 0-19 10 20%
MALE, 20-55 38 76%
MALE, 56 & ABOVE 2 4% 50


FEMALE, 0-10,000 29 58%
FEMALE, 10,001-20,000 14 28%
FEMALE, 20,001 & ABOVE 7 14% 50
MALE, 0-10,000 9 18%
MALE, 10,001-20,000 34 68%
MALE, 20,001 & ABOVE 7 14% 50
50 FEMALES OUT OF 100 RESPONDENTS OF TRECE MARTIRES

"No" DO NOT answer
40 (80%) 10 (20%) 100%
any further)

do you use? 39 (98%) 1 (3%) 100%

110

50 150 250M 300 350 400 450 500 750 1000
100ML
ML ML L ML ML ML ML ML ML ML
1
27 1 4 1 1 1 2 2
(3% 0% 0
(68%) (3%) (10%) (3%) (3%) (3%) (5%) (5%)
)
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 28 (70%) 7 (18%) 1 (3%) 1 (3%) 3 (8%)
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
10 (25%) 29 (73%) 1 (3%) 0
QUESTION PERCENTAGE
you make use of
one.

NO. 7 5 4 3 2 1

111
EASY
G T E S
Y
28
1 (3%) 2 (5%) 2 (5%) 0 1 (3%) 6 (15%)
(70%)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 30 (75%) 6 (15%) 2 (5%) 2 (5%) 0
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 32 (80%) 2 (5%) 3 (8%) 3 (8%) 0
MONTHS?
QUESTION PERCENTAGE
YES NO
out in the market? 11 (28%) 28 (72%)
QUESTION PERCENTAGE
YES NO
36 (90%) 4 (10%)

112
50 MALES OUT OF 100 RESPONDENTS OF TRECE MARTIRES

"No" DO NOT answer
38 (76%) 12 (24%) 100%
any further)

do you use? 30 (79%) 8 (21%) 100%

50M 100M 150M 250M 300M 350M 400M 450M 500M 750M 1000
2 24 4 4
1 2 1
(5% (63% (11% (11% 0 0 0 0
(3%) (5%) (3%)
) ) ) )
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 26 (68%) 5 (13%) 5 (13%) 1 (3%) 1 (3%)
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
3 (8%) 26 (68%) 9 (24%) 0
QUESTION PERCENTAGE
you make use of
one.

113

NO. 7 5 4 3 2 1
EASY
G T E S
Y
9
1 (3%) 0 8 (21%) 2 (5%) 1 (3%) 17 (45%)
(24%)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 29 (76%) 7 (18%) 1 (3%) 1 (3%) 0
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 21 (55%) 3 (8%) 9 (24%) 5 (13%) 0
MONTHS?
QUESTION PERCENTAGE
YES NO

114
QUESTION PERCENTAGE
YES NO
33 (87%) 5 (13%)
4.3.1.4 General Trias, Cavite Survey Results
100 RESPONDENTS OF GENERAL TRIAS
MALE 50 50%
FEMALE 50 50% 100

FEMALE, 0-19 8 16%
FEMALE, 20-55 41 82%
MALE, 0-19 14 28%
MALE, 20-55 34 68%
MALE, 56 & ABOVE 2 4% 50


FEMALE, 0-10,000 14 28%
FEMALE, 10,001-20,000 15 30%
FEMALE, 20,001 & ABOVE 21 42% 50

115
MALE, 0-10,000 14 28%

MALE, 10,001-20,000 16 32%
MALE, 20,001 & ABOVE 20 40% 50
50 FEMALES OUT OF 100 RESPONDENTS OF GENERAL TRIAS

"No" DO NOT answer
40 (80%) 10 (20%) 100%
any further)

do you use? 34 (68%) 16 (32%) 100%

50 150M 250M 300 350 400 450 500 750 1000
100ML
ML L L ML ML ML ML ML ML ML
23 5 4 2 2 1 2 1
0% 0% 0%
(58%) (13%) (10%) (5%) (5%) (3%) (5%) (3%)
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 25 (63%) 9 (23%) 3 (8%) 1 (3%) 2 (5%)
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
12 (30%) 26 (65%) 2 (5%) 0%
QUESTION PERCENTAGE
you make use of
one.

116

NO. 7 5 4 3 2 1
EASY
G T E S
Y
13 4
0 2 (5%) 0 0 21 (53%)
(33%) (10%)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 27 (68%) 11 (28%) 0 2 (5%) 0
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 26 (65%) 5 (13%) 4 (10%) 5 (13%) 0
MONTHS?
QUESTION PERCENTAGE
YES NO

117
QUESTION PERCENTAGE
YES NO
37 (93%) 3 (8%)
50 MALES OUT OF 100 RESPONDENTS OF GENERAL TRIAS

"No" DO NOT answer
39 (78%) 11 (22%) 100%
any further)

do you use? 31 (79%) 8 (21%) 100%

50M 100M 150M 250M 300M 350M 400M 450M 500M 750M 1000
16 11 8
2 1 1
0% (41% (28% (21% 0 0 0 0
(5%) (3%) (3%)
) ) )
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 16 (41%) 20 (51%) 3 (8%) 0 0
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
7 (18%) 32 (82%) 0 0

118
QUESTION PERCENTAGE
you make use of
one.
.
NO. 7 5 4 3 2 1
EASY
G T E S
Y
14
2 (5%) 4 (10%) 0 1 (3%) 0 18 (46%)
(36%)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 25 (64%) 14 (36%) 0 0 0
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 16 (41%) 13 (33%) 4 (10%) 5 (13%) 1 (3%)
MONTHS?

119
QUESTION PERCENTAGE
YES NO
UESTION PERCENTAGE
YES NO
39 (100%) 0
4.3.1.5 Dasmariñas, Cavite Survey Results
100 RESPONDENTS OF DASMARIÑAS
MALE 50 50%
FEMALE 50 50% 100

FEMALE, 0-19 17 34%
FEMALE, 20-55 28 56%
MALE, 0-19 18 36%
MALE, 20-55 20 40%
MALE, 56 & ABOVE 12 24% 50


120

FEMALE, 0-10,000 23 46%
FEMALE, 10,001-20,000 17 34%
FEMALE, 20,001 & ABOVE 10 20% 50
MALE, 0-10,000 28 56%
MALE, 10,001-20,000 11 22%
MALE, 20,001 & ABOVE 11 22% 50
50 FEMALES OUT OF 100 RESPONDENTS OF DASMARIÑAS

"No" DO NOT answer
40 (80%) 10 (20%) 100%
any further)

do you use? 28 (70%) 12 (30%) 100%

50M 100M 150M 300M 350 400 450 500M 750 1000
250ML
L L L L ML ML ML L ML ML
1 9 4 11 4 1 2 0 4 1 3
(3%) (23%) (10%) (28%) (10%) (3%) (5%) (0%) (10%) (3%) (8%)
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 14 (35%) 12 (30%) 5 (13%) 3 (8%) 6 (15%)
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
21 (53%) 13 (33%) 6(5%) 0

121
QUESTION PERCENTAGE
you make use of
one.

NO. 7 5 4 3 2 1
EASY
G T E S
Y
9
4
(23% 4 (10%) 9 (23%) 4 (10%) 0 10 (25%)
(10%)
)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 24 (60%) 8 (20%) 3 (8%) 5 (13%) 0
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 14 (35%) 15 (38%) 5 (13%) 6 (15%) 0
MONTHS?

122
QUESTION PERCENTAGE
YES NO
out in the market? 14 (50%) 14 (50%)
UESTION PERCENTAGE
YES NO
moisturizing properties for a price of 37 (93%) 3 (8%)
50 MALES OUT OF 100 RESPONDENTS OF DASMARIÑAS

"No" DO NOT answer
any further) 23 (46%) 27 (54%) 100%

do you use? 17 (74%) 6 (26%) 100%

100M 150M 250 300M 350 400 450 500 750 1000
50ML
L L ML L ML ML ML ML ML ML
4 7 4 2(9% 4 1
0 0 0 0 1 (4%)
(17%) (30%) (17%) ) (17%) (4%)
QUESTION PERCENTAGE
P100-199 P200-299 P300-399 P400-499
lotion? 12 (52%) 4 (17%) 5 (22%) 2 (9%) 0

123
QUESTION PERCENTAGE
TWICE A ONCE EVERY
ONCE A MONTH OTHER
buy lotion?
10 (43%) 4 (17%) 9 (39%) 0
QUESTION PERCENTAGE
you make use of
one.

NO. 7 5 4 3 2 1
FRAGRANCE 7 9 3 2 0
EASY
G T E S
Y
6
1
(26% 2 (9%) 6 (26%) 6 (26%) 0 2 (9%)
(4%)
)
QUESTION PERCENTAGE
TUB OTHERS
container do
you prefer? 9 (39%) 4 (17%) 8 (35%) 2 (9%) 0

124
QUESTION PERCENTAGE
you buy STORE STORE
lotions in the
PAST THREE 8 (35%) 7 (30%) 5 (22%) 3 (13%) 0
MONTHS?
QUESTION PERCENTAGE
YES NO
QUESTION PERCENTAGE
YES NO
moisturizing properties for a price of 20 (87%) 3 (13%)
4.3.2 Data Analysis
IMUS
FEMALE MALE TOTAL
Lotion Users: 44/50 = 88% 39/50 = 78% 83/100 = 83%
Willingness to buy: 43/44 = 98% 37/39= 95% 80/100 = 80%
BACOOR
FEMALE MALE TOTAL
Lotion Users: 44/50 = 88% 44/50 = 88% 88/100 = 88%
Willingness to buy: 42/44 = 95% 39/44 = 89% 81/100 = 81%
TRECE MARTIRES
FEMALE MALE TOTAL
Lotion Users: 40/50 = 80% 38/50 = 76% 78/100 = 78%

125
GENERAL TRIAS
FEMALE MALE TOTAL
Lotion Users: 40/50 = 80% 39/50 = 78% 79/100 = 79%
DASMARIÑAS
FEMALE MALE TOTAL
Lotion Users: 40/50 = 80% 23/50 = 46% 63/100 = 79%
According to the data gathered, there are higher percentages of possible market on
female individuals rather than male.
4.3.2 Population
Based on the census conducted by the Philippines Statistics Authority, as of 2015,
the total population in the province of Cavite is 3,678,301, where 46.94% of these consist
of the targeted age bracket of 10 years old and above at five (5) chosen locations within
the province. The growth rate of +3.37% is based on PSA’s gathered data in 2015.
CAVITE 2015 2010

Annual Growth Rate
Total Population 3,678,301 3,090,691 +3.37%
Target Cities 2015 2010 Annual Growth Rate

Bacoor City 600,609 520,216 +3.09%
City of Imus 403,785 301,624 +6.77%
Dasmariñas City 659,019 575,817 +2.89%
General Trias City 314,303 243,322 +5.83%
Trece Martires City 155,713 104,559 +9.78%
Total Population 2,135,444 1,747,548

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Note: 2015’s population less 2010’s population, divide the answer by 2010’s
population and divide it again by 5 (years).
(Ex: 600,609 – 520,216 = 80,393 / 520,216 = 0.1545377305 / 5 = 0.0309075461)
CITY 2016 2017 2018 2019 2020 2021 2022 2023

Bacoor City 619172 638309 658038 678376 699343 720958 743241 766213
City of Imus 431138 460343 491527 524823 560375 598336 638867 682144
Dasmariñas City 678064 697659 717821 738565 759908 781869 804464 827712
General Trias City 332640 352048 372587 394325 417332 441680 467449 494722
Trece Martires City 170949 187676 206040 226200 248333 272632 299308 328594
Total Population 2231963 2336035 2446013 2562290 2685291 2815474 2953329 3099385
Note: To get the population per year and per location; Year 1 population is
multiplied by the corresponding computed annual growth rate per location (on the
previous page), the answer will be added again to the Year 1 population.
(Ex: 600,609 x 0.0309075461 = 18563.350356 + 600,609 = 619,172.35036)
2015 - 10y.o. and

above individuals
within Bacoor,
2015 - overall
Imus, Dasmariñas, Percentage
CAVITE population
General Trias and
Trece Martires
City
3,678,301 1,726,641 46.94%
Note: To get the percentage; Targeted demographic is divided by 2015 – overall
population. Overall and targeted population are PSA’s data.
(Ex: 1,726,641 / 3,678,301 = 0.4694126446)

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4.3.3 Target Population
TARGET POPULATION
CITY 2016 2017 2018 2019 2020 2021 2022 2023
Bacoor City 290647 299631 308891 318438 328281 338427 348887 359670
City of Imus 202381 216091 230729 246359 263047 280866 299892 320207
Dasmariñas City 318292 327490 336954 346692 356711 367019 377625 388538
Note: To get target population per year and location; population per year and
location that has been multiplied to the annual growth rate will be multiplied by the
percentage of the targeted demographic.
(Ex: 600,609 x 0.0309075461 = 18563.350356 + 600,609 = 619,172.35036 x
0.4694126446 = 290,647.33045)
4.3.4 Demand Schedule
The demand schedule of Verdeganicum Incorporated is computed according to
the percentage of respondents per location who answered “Yes” when asked if they are
willing to buy the company’s product.
ACCEPTABILITY RATE
CITY YES PERCENTAGE
Bacoor City 81/100 81%
City of Imus 80/100 80%
Dasmariñas City 57/100 57%
General Trias City 76/100 76%
Trece Martires City 69/100 69%
TOTAL 363/500 73%

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DEMAND IN POPULATION
CITY 2016 2017 2018 2019 2020 2021 2022 2023
Bacoor City 235424 242701 250202 257935 265907 274126 282598 291333
City of Imus 161905 172873 184583 197087 210438 224693 239914 256166
Dasmariñas City 181426 186669 192064 197614 203325 209201 215246 221467
(Ex: 290,647.33045 x .81 = 235,424.33766)
4.3.5 Supply
PROJECTED SUPPLY IN UNITS

YEAR 2019 2020 2021 2022 2023
SUPPLY 600000 600000 660,000 660,000 726,000
Note: Beginning production capacity is at 50% machine capacity or 600,000
bottles of lotion per year. An increase of 10% will occur every 2 years.
4.4 Marketing Plan
A marketing plan describes business activities involved in accomplishing specific
marketing objectives within a set time frame. It also includes a description of the current
marketing position of a business, a discussion of the target market and a description of
the marketing mix that a business will use to achieve their marketing goals.
4.4.1 Market Analysis
4.4.1.1 Market Demographic
The potential customers of Verdeganicum Incorporated are those people in their
adolescence and minimum to average income earners that are conscious to their skin

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condition and also entities located in five (5) areas of Cavite. The way of selling the
product will be direct. Since, there’s a wide range of target market, there will be a higher
chance of purchasing our product.
4.4.1.2 Market Trends
Nowadays, people are becoming more concerned and conscious about their skin,
that they are trying different skin care products offered in the market hoping to find the
most compatible benefit that matches their needs.
The global product market is governed by various regulatory bodies. Prevalence
of stringent regulations by agencies including the FDA for instance, has banned
chemicals that were being used in cosmetics and skin care products. This ban was done
due to suspicions of harm the chemicals may cause to human body post-usage of the
products.
Because of that, the increasing demand for green or natural products is expected
to drive the growth. The various efforts being made to reduce the consumption of harmful
chemicals such as parabens, coupled with efforts of numerous multinational companies,
for shifting to sustainable products, has contributed to the rise in consumption of natural
skin care products. In addition, rising consumer awareness of the potential ill impact of
organic skin care products on health and environment has resulted in augmenting sales of
natural personal care products over the past few years.
Worldwide Market Reports added Latest Research Report titled “Body Lotion
Market by Manufacturers, Regions, Product Type and Application, Forecast to 2022” to
its Large Report database. Body Lotion Market Report provides important information

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related to the overall market and price forecast over a five-year period, from 2017 to
2022. The market is expected to be driven by the rising demand for natural skin care
products, coupled with the growing emphasis on personal health, especially in the
developing countries of Asia Pacific. The Body Lotion Market has uncovered rapid
development in the current and past years and is probably going to proceed with a
continuing development in the upcoming years.
4.4.1.3 Competitors Analysis
Organic Lotion Competitors
COMMERCIAL NAME PRODUCT AND PRICE
Human Nature Healthy Lotion (200ml) - P199.75
Aveeno Skin Relief Lotion (354ml) – P714.00
Synthetic Lotion Competitors
COMMERCIAL NAME PRODUCT AND PRICE
Moisturizing Lotion Body and Face (118ml)

Cetaphil
– P328.00
Replenishing Hand Cream Skin Relief (75ml

Dove
– P650.00) ( 250ml – P880.00)

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Jergens Ultra-Healing (200ml)- P175.00
Johnson and Johnsons Johnson’s Baby Lotion (200ml) – P149.00
Moringo Moisturizing Lotion (125ml) – P129.75
Vitasmooth Hand Body Lotion (100ml) –

Myra E
P65.00
Belo Whitening Lotion (200ml) – P216.00
Gluta Max Lightening Lotion (100ml) – P179.75
Kojie San Lightening Body Lotion (100g) – P145.00
Met Tathione Whitening Lotion (150ml) – P895.00
Extra Whitening Firming Lotion (125ml) –

Nivea
P162.00
Skin White Glutathione Lotion (100ml) P182.75

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Human Nature and Aveeno are known brands of organic products and
manufacturers not located in Cavite. These two brands only sell their product through
Watsons and Body Shops in Cavite, considering walk-in customers, their products are
hard to find and people are not much relying on purchasing lotions online. They may be
low on price but the availability of their products is limited to consumers. Verdeganicum
Incorporated will use this as an advantage; the company is selling its product directly to
consumers on their homes or at their jobs.
Synthetic lotion competitors are also shown in the table. These are the common
lotion brands that can be seen in supermarkets, drugstores and department stores
worldwide. These synthetic lotions are focusing on moisturizing and whitening of skin,
they are using inorganic materials, while Verdeganicum Incorporated is focused on skin
protection and skin repair. Many commercial moisturizers also contain petroleum based
oils since they are much cheaper than plant based oil. Petroleum based oils act as an
emollient, but in fact, are quite damaging to our skin, our bodies and the environment.
The company will use this as an advantage in marketing. You can only find these
products on supermarkets and selected stores. Some of the lotions mention above can be
found online, but it will take several days before acquisition.
4.4.1.4 Target Market
The company’s target market comprises of male and female adolescents,
minimum to average income earners, beauty and skin conscious people that are using

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beauty products such as lotion. It is easy for our target market to discover our product by
reason of Direct Selling.
4.5 Positioning
Positioning is an effort to influence consumer perception of a brand or product
relative to the perception of competing brands or products. Its objective is to occupy a
clear, unique, and advantageous position in the consumer’s mind.
The company is manufacturing and distributing an effective and unique product
for a lower and more attractive price without sacrificing quality. Verdeganicum
Incorporated will be offering its products through direct personal presentation,
demonstration, and sale of products and services to consumers, usually in their homes or
at their jobs by sellers hired by the marketing department.
4.6 Marketing Mix
It is about putting the right product or a combination thereof in the place, at the
right time, and at the right price. Thus the marketing mix refers to four broad levels of
marketing decision, namely: product, price, promotion, and place.
4.6.1 Product
There are many lotions out there in the market. Sure, that those lotions can
hydrate and moisturize skin, protect you from the harmful rays of the sun and give you
firmer and more supple feeling. But how about protection for harmful bacteria around
you? There are only few-to-none, lotions in the market that is offering an antibacterial
benefit. We are exposed to literally hundreds of millions of different bacterial cells daily,
without proper hygiene, bacterium can double within 20 to 30 minutes, meaning that one

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bacterium turns into two, then two become four, leading eventually to the formation of
millions of cells in a few hours.
That is our reason to introduce our product to the public. We want our customers
to be protected from skin diseases caused by these bacteria. An organic lotion derived
from essential oils and Madre Cacao leaves extract, it offers not only moisturizing of the
skin, but also anti-aging, antioxidant and anti-bacterial properties that also helps defend
your cells from damage. Allow your skin to drink up daily natural, genuine nourishment
that's free from whitening ingredients and other toxins that are harmful to your skin.
4.6.2 Price
Verdeganicum Incorporated will use penetration pricing wherein the company
will set low price to build up sales and market share. This may be done to establish
position in a market with pre-existing similar products on offer. Once a position is
created, the prices may be raised. The company’s lotion product selling price is:
PRODUCT SELLING PRICE
Lavender Scented Madre Cacao Lotion PHP 119 per bottle (100ml)
4.6.3 Promotion
Verdeganicum Incorporated will be using promotional strategies and
advertisement to help inform the customers about the product we have and to inform
them how useful our product is. It also helps our company in different ways, like increase
brand awareness, provide appropriate information, increase customer traffic, and build

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sales and profits. Our company will make sure that our advertisement is for everybody
including kids, young and old.
1. PRINT MEDIA ADVERTISING
Print media has always been a popular advertising option. It is a form of
advertising that uses physically printed media, such as magazines and
newspapers, to reach consumers, business customers and prospects. It is a
revolutionary evolution that has buried the gap of communication with the aid of
tangible printed assets among various targeted groups of people so that the
hierarchy of information would never get broken down due to slacking
conversation. Our goal is to impart the knowledge and information about our
product and to strictly target a huge mass of consumers.
2. SOCIAL MEDIA ADVERTISING
Everybody uses social media, there’s no avoiding it. It’s our number one
place to stay connected to friends, family, colleagues, news, and, most
importantly to marketers, companies and brands. Social media advertising is a
form of Internet marketing that utilizes social networking websites as a marketing
tool. We will make our own Facebook Page, Instagram Account, Youtube
Channel, and website named Verdeganicum Incorporated in purpose of promoting
the goodness of our product and to bring awareness to the social world. The goal
of our company by using these strategies is to produce content that users will
share with their social network to promote our business and spread the good news
about our product which is the Madre Cacao lotion.

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4.6.4 Placement
Placement refers to the location and distribution of the products to make them
available to the customers. The business must distribute the product to the user at right
place at the right time. Distribution is very important to the business because covers all
the services necessary to place the product in the hands of the consumer. The distribution
of the product needs to be efficient and effective for the business to meet its overall
marketing objectives.
Verdeganicum Incorporated proposes to sell products directly to consumers on
their home or jobs through hired individuals or resellers. We are offering 10%
commission per bottle for individuals who will do direct-selling, with this, it will help the
company to make a mark, brand and build relationship to consumers.

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CHAPTER 5
SOCIO-ECONOMIC ASPECT
In this chapter, it includes on the analysis of the business’ strengths, weaknesses,
opportunities, and threats and how the company can contribute to the prosperity of the
economy and society as a whole and the present state of the economy condition in a
country or the region location of the business. It is important to know and study the
economic condition for us to develop conceptual models of behavior to predict responses
to changes in policy and market conditions and also, in order for us to use rigorous
statistical analysis to investigate these changes.
5.1 Philippine Economic Condition
The Philippine economy grew by 6.8 percent in the first quarter of 2018. This was
faster than the growth recorded in the same quarter of 2017. Manufacturing, Other
Services, and Trade were the main drivers of growth for the quarter, among the major
economic sectors, Industry recorded the fastest growth at 7.9 percent. This was followed
by Services with a growth of 7.0 percent. Agriculture also grew at a slower pace of 1.5
percent. Net Primary Income increased to 4.3 percent during the quarter, Meanwhile,
Gross National Income posted a growth of 6.4 percent, faster than previous year’s growth
of 6.3 percent and with the country’s projected population reaching 105.8 million in the
first quarter of 2018, per capita GDP grew by 5.1 percent.
The Beauty and Personal care industry in the Philippines continued to record
healthy growth, benefiting from favorable economic conditions, a rising standard of
living, prominent global trends, the further development of the country’s retailing

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industry and the growing influence of social media, with these all contributing to rapidly
changing consumer behavior. All these factors impacted consumers’ choice of beauty and
personal care products.
The Health and wellness trend to support the further growth of skin care. Filipino
consumers are becoming increasingly health-conscious, with this affecting all areas of
their lives, from their hobbies and social activities to the food, clothing and beauty and
personal care products they buy. As part of their healthier lifestyles, they are paying more
attention to their appearance and image.
Rising disposable incomes in the Philippines are leading to more consumers
purchasing beauty and personal care products which are not generally considered
essential items. This trend is supporting sales in categories such as general-purpose body
care, face masks, facial cleansers, and facial moisturizers. The trend is due to the high
commercialization of these products as well the evolving attitude of Filipinos towards the
value of beauty and wellness. The growth is probably not a sign of petty obsession but
simply commercialization which has heightened in such a way that many consumers tend
to buy something that they believe will boost their confidence
5.2 Trece Economic Condition
Verdeganicum Incorporated is located at Brgy. Conchu, Trece Martires, Cavite.
The strategic location of the business is the best, since it is a 4th class city and the de
facto capital city of the province of Cavite, Philippines, it is not also far enough to the
capital of the Philippines which is Manila. Industrialization and commercialism have
replaced agriculture as the major source of economy for the city. Its economic growth has

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attracted immigration from other municipalities especially from Metro Manila. The
population grown from 104,559 people in 2010 to 155,713 in 2015, representing an
increase of 7.88%. In comparison, the population in 1995 was only 20,451. The city's
other major source of income are revenues from real property taxes. The most noteworthy
fact about Trece Martires is the absence of any form of gambling. It has been awarded in
the fields of nutrition, health services, literacy, education and social services.
5.3 SWOT Analysis
SWOT analysis is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats related to business
competition or project planning. SWOT Analysis is a useful technique for understanding
your Strengths and Weaknesses, and for identifying both the Opportunities open to you
and the Threats you face.
5.3.1 Strengths
1. The company is manufacturing and distributing an effective and unique product.
2. The company is selling its product on a lower price compared to our known
competitors.
3. The company is not sacrificing quality based on price.
4. The company’s products are offered and sold directly to consumers on their
homes or jobs.
5. The company is enforcing highly efficient, low-cost manufacturing.
6. The company’s raw materials are easy to avail and can be purchased locally.

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7. The company does not use machineries that will have a bad effect to the
environment.
8. The company is open to improvements.
9. The company is enforcing strong employee attitude.
10. The company aims for product innovation.
5.3.2 Weaknesses
1. The company is competing with many known and large competitors.
2. The company is a beginner in the lotion industry.
3. The company is offering consumers an odd product that will oppose their current
brand.
4. The company has only a limited number of market shares.
5. The company significantly relies on Madre Cacao lotion sales as a driver of
revenue.
6. The company has limited capital for expansion.
5.3.3 Opportunities
1. The company is the first Madre Cacao lotion provider.
2. The company foresees a huge potential market in the cosmetic industry.
3. The company’s product will be suitable for today’s polluted environment.
4. Consumers are increasingly becoming health-conscious.
5. Consumers are more price conscious in the down economy.
6. The company will increase the number of locations where more consumers may
avail the product.

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7. The company will partner up with private investors to access more capital.
5.3.4 Threats
1. The company’s competitors are experimenting new products that might rival with
our product.
2. The company’s competitors have more ways of marketing.
3. The procurement of the company’s main raw material (Madre Cacao Extract) may
be affected by natural calamities and phenomenon.
4. There might be changes in government regulations.
5. Unstable economy might affect costing and pricing.
5.4 Action Plan
In order to solve Verdeganicum Incorporated's known threats, which are also
connected to its weaknesses, the company came up with an action plan.
First, the company’s competitors are experimenting new products that might rival
with our product. To deal with this threat the company is open to improve the formula of
its product, by adding and experimenting other scents and essential oils.
Second, the company’s competitors have more ways of marketing. To deal with
this, Verdeganicum Incorporated will be making the brand known to people by social and
print media advertisement, direct selling and by conducting free monthly skin check-ups
and consultations and providing lotion testers to the community.
Third, the procurement of the company’s main raw material (Madre Cacao
Extract) may be affected by natural calamities and phenomenon. Considering this, the
company has two (2) suppliers of madre cacao extract. One is locally based while the

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other is internationally based. With their price having only a slight difference, we can
easily order to the other supplier in case of calamities.
Fourth, there might be changes in government regulations. If any will occur in the
foreseeable future, Verdeganicum Incorporated are willing to adapt and comply with
these changes.
Fifth, unstable economy might affect costing and pricing. In case of an event that
might generally affect the company's production, Verdeganicum Incorporated have
decided to stock raw materials prior to an expected event to avoid necessary increase in
price due to unstable economy.
5.4 Corporate Social Responsibility
Corporate Social Responsibility or CSR is a corporation’s initiative to assess and
take responsibility for the company’s effects on environmental and social wellbeing. CSR
is the continuing commitment by business to behave ethically and contribute to the
economic development while improving the quality of life of the workforce and their
families as well as that of the local community and society at large. Basically, this means
“good company, good people, good environment.” No one wants to work for a company
that pollutes the environment around them, puts the workforce in difficulty working
conditions. So, companies have the responsibility to ensure that they only contribute to
the betterment and not the detriment.
Verdeganicum Incorporated, as part of its CSR, will extend its hand to the
community by having skin testing centers that will provide free monthly regular check-

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ups and consultations; with this, the company will also be giving away Madre Cacao
Lotion testers. It will be held in different plazas of Cavite and it is open for everyone.
5.5 Social Desirability
This part of the study covers the benefits to be obtained from an undertaking in
terms of its conditions to the community, to other business firms and to the national
economy as whole.
5.5.1 Employment Opportunities
Verdeganicum Incorporated will provide employment opportunities most
especially for those who live in Trece Martires, Cavite.
The company will be in need of people who will offer the product directly to
customers; this will result to commissions for those who can actually sell the product.
Permanent employees will receive salaries proportionate to their work. Moreover,
they will be given employee benefits their efficiency and loyalty to the company, and in
such cases, the company will provide necessities to their family while working in the
company since they will be receiving appropriate benefis (SSS, PhilHealth, and
PAGIBIG).
5.5.2 Increase the revenue of the government
Verdeganicum Incorporated is a corporation; therefore, it is subject to 30%
income tax under section 27(A) of the Tax Code. The company is also subject to local
taxes in the forms of permit, licenses, and other fees.

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5.5.3 Charities and Community Programs
The company will provide programs and will give donations to some charities for
the benefit of local community.
5.5.4 Recycling
The Madre Cacao Lotion’s container is made from low-density polyethylene
(LDPE) which is a thermoplastic. More recycling programs are beginning to accept
LDPE plastics. A very clean and safe plastic, LDPE is found in household items like
plastic wrap, grocery bags, frozen food containers and squeezable bottles. Recycled
LDPE is made into such items as garbage cans, paneling, furniture, flooring and bubble
wrap.

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CHAPTER 6
FINANCIAL ASSUMPTIONS
These are the following assumptions to be used in the company’s financial
statement.
6.1 Assumptions:
1. 95% of total units produced have been sold based on production.
2. 50% of sales are sold in cash.
3. Allowance for doubtful accounts is 2% of the ending accounts receivable of the
year.
4. Purchases of raw materials are 50% are payable in one month and 50% paid in
cash.
5. Purchases are made every month.
6. Purchase transactions are VAT inclusive.
7. The ending raw materials inventory is equal to 5% of the total raw materials that
will be the beginning inventory for the next period.
8. The ending finished goods inventory is maintained at 5% of the total goods
available for sale.
9. Straight line method of depreciation is used.
10. The estimated useful life of plant building is 20 years.
11. The estimated useful life of office equipment is 10 years.
12. The estimated useful life of warehouse/storage equipment is 10 years.
13. The estimated useful life of laboratory equipment is 10 years.

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14. The estimated useful life of pantry equipment is 10 years.
15. The estimated useful life of factory equipment is 7 years.
16. The estimated useful life of delivery equipment is 7 years.
17. Utilities incurred for the month is paid on the following month.
18. An assumption is made that 85% of the factory and office supplies will be used or
consumed and 15% will be left as beginning inventory for the next period.
19. The amount to be purchased will be equal to 85% of the current month supplies
consumption and 15% of the following month.
20. Salaries of each employee and factory worker will increase by 2% every 2 years,
starting from the third year of operations.
21. Withholding tax on compensation was properly computed and remitted to the
BIR.
22. The cost of repair and maintenance will be amounted up to 5% of their costs
every year: Machines and Delivery Equipment.
23. The cost for advertising will be amounted up to Php 250,000.00 and increases
20% every year.
24. The cash dividend will be declared on 50% of net income.
25. In the year 2020, Php 6,500,000 is invested in time deposit with a market rate of
2%.
26. Interest receivable is net of tax.

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CHAPTER 7
FINANCIAL PROJECTIONS
CAPITAL REQUIREMENT
Pre-operating Costs
Licenses and Permits PHP 364,960.00
Advertising And Promotions 250,000.00
PHP 614,960.00
Capital Expenditures
Machine PHP 1,155,648.21
Factory Equipment 269,140.85
Office Equipment 447,517.63
Warehouse/Storage Equipment 81,565.85
Laboratory Equipment 26,923.88
Pantry Equipment 23,389.29
Delivery Truck 1,116,071.43
Land 1,785,714.29
Plant Building 7,142,857.14
Input VAT 1,445,859.43 PHP 13,494,688.00
Total Costs PHP 14,109,648.00
Working Capital PHP 890,352.00
Total Capital Requirement PHP 15,000,000.00
Source of Funds
Incorporators' Invest
Fullido.Danielle Marie PHP 3,000,000.00
Orcacitas. Paulyne Mae 3,000,000.00
Paus,John Albert 3,000,000.00
Pura,Maria Ivyann 3,000,000.00
Solis.Jayromeloid 3,000,000.00
Total Capital Invested PHP 15,000,000.00

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ORGANIZATION COST
Security and Exchange Commission
Filing Fee Php 200,000.00
Legal Research Fee 8,000.00
Name Registration Fee 100.00
By-Laws 500.00 Php 208,600.00
Municipality and Barangay Clearance
Articles of Incorporation Php 500.00
Business Plate 200.00
Community Tax Certificate 500.00
Business Tax 14,750.00
Mayor's Permit 20,000.00
Building Inspection Fee 630.00
Sanitary Inspection Fee 500.00
Zoning Fee 1,000.00
Building Permit 2,500.00
Garbage Fee 3,000.00
Environmental Protection Fee 2,000.00
Fire Safety Inspection Fee 1,200.00
Barangay Clearance 400.00
PCO Accreditation 500.00
BIR Registration 500.00
Documentary Stamp Taxes 30.00
Print Receipts 3,500.00
Accounting Books 400.00
FDA Registration 750.00
Product Licensing Fee 500.00
Licensing of Establishment 3,000.00
Feasibility Study 50,000.00

Legal Fees 50,000.00 156,360.00
Php 364,960.00

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VERDEGANICUM INCORPORATED
PROJECTED INCOME STATEMENT
FOR FIVE YEARS EDING 2023
(with comparative figures)
(In Philippine Peso, except earnings per common share amounts)

Notes 2019 2020 2021 2022 2023
GROSS SALES 9 60,562,500.00 63,590,625.00 73,447,171.88 77,119,530.47 89,073,057.69
COST OF GOODS SOLD 2 38,264,955.35 42,084,031.96 45,864,092.64 46,310,065.40 48,264,861.67
GROSS PROFIT 22,297,544.65 21,506,593.04 27,583,079.23 30,809,465.07 40,808,196.02
Salaries Expense 3 6,797,401.54 6,797,401.54 6,924,019.29 6,924,019.29 7,052,950.54
SSS Contribution 3 319,060.80 319,060.80 319,503.60 319,503.60 320,383.20
Philhealth Contribution 3 95,452.50 95,452.50 97,361.55 97,361.55 99,308.78
HDMF Contribution 3 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
AdvertisingExpense 10 250,000.00 300,000.00 360,000.00 432,000.00 518,400.00
Office Supplies Expense 4 33,468.75 39,910.09 42,371.82 44,018.20 45,587.11
Pre-operating Costs and Licensing Expenses 12,160.00 12,160.00 12,160.00 12,160.00 12,160.00
Bad Debts Expense 5 56,525.00 2,826.25 9,199.44 3,427.53 11,156.63
Commission Expense 1 3,028,125.00 3,179,531.25 3,672,358.59 3,855,976.52 4,453,652.88
Selling and Administrative Expenses:
Depreciation Expense: Plant Building 178,571.43 178,571.43 178,571.43 178,571.43 178,571.43
Depreciation Expense: Delivery Equipment 7 159,438.78 159,438.78 159,438.78 159,438.78 159,438.78
Depreciation Expense: Office Equipment 7 44,751.76 44,751.76 44,751.76 44,751.76 44,751.76
Depreciation Expense: Warehouse/Storage Equipment 7 8,156.58 8,156.58 8,156.58 8,156.58 8,156.58
Depreciation Expense: Laboratory Equipment 7 2,692.39 2,692.39 2,692.39 2,692.39 2,692.39
Depreciation Expense: Pantry Equipment 7 2,338.93 2,338.93 2,338.93 2,338.93 2,338.93
TOTAL OPERATING EXPENSE 11,018,143.46 11,172,292.30 11,862,924.17 12,114,416.57 12,939,549.01
INCOME BEFORE TAX 11,279,401.19 10,334,300.74 15,720,155.07 18,695,048.50 27,868,647.01

PROVISION FOR INCOME TAX/MCIT 12 3,383,820.36 3,100,290.22 4,716,046.52 5,608,514.55 8,360,594.10
income after tax 7,895,580.84 7,234,010.52 11,004,108.55 13,086,533.95 19,508,052.91
Interest Income - 156,000.00 312,000.00 468,000.00 624,000.00

Net Income 7,895,580.84 7,390,010.52 11,316,108.55 13,554,533.95 20,132,052.91
150
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED 2019-2023
(In Philippine Pesos)

2018 2019 2020 2021 2022 2023
CAPITAL STOCK - P100.00 par value

Authorized shares 25,000,000
Issued and Outstanding 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00
Retained Earnings (Deficit) Beg. - - 3,947,790.42 7,642,795.68 13,300,849.95 20,078,116.93

Net Income - 7,895,580.84 7,390,010.52 11,316,108.55 13,554,533.95 20,132,052.91
Cash Dividends - 3,947,790.42 3,695,005.26 5,658,054.27 6,777,266.97 10,066,026.45
Retained Earnings (Deficit) End. - 3,947,790.42 7,642,795.68 13,300,849.95 20,078,116.93 30,144,143.38
Total Equity 15,000,000.00 18,947,790.42 22,642,795.68 28,300,849.95 35,078,116.93 45,144,143.38

151
STATEMENT OF FINANCIAL POSITION
(In Philippine Pesos)

Notes 2018 2019 2020 2021 2022 2023
ASSET S
CURRENT ASSETS
Cash in Bank 890,352.00 8,232,383.37 5,779,201.27 6,746,398.70 8,399,303.98 14,829,814.31
Accounts Receivable, net of allowance 5 2,769,725.00 2,908,211.25 3,358,983.99 3,526,933.19 4,073,607.84
Interest Receivable - - 156,000.00 312,000.00 468,000.00 624,000.00
Inventory 2 1,928,906.25 1,928,906.25 2,121,796.88 2,121,796.88 2,333,976.56
Factory Supplies 4 10,044.27 12,555.33 14,036.86 15,474.45 17,026.98
Office Supplies 4 5,906.25 7,042.96 7,477.38 7,767.92 8,044.78
Pre-operating Costs 614,960.00 12,160.00 - - -
Excess of Input Tax over Output Tax 1,445,859.43 - - - - -
TOTAL CURRENT ASSETS 2,951,171.43 12,959,125.14 10,791,917.06 12,560,693.81 14,539,276.42 21,886,470.47
NON-CURRENT ASSETS
Land 1,785,714.29 1,785,714.29 1,785,714.29 1,785,714.29 1,785,714.29 1,785,714.29
Machines 6 1,155,648.21 990,555.61 825,463.01 660,370.41 495,277.81 330,185.20
Delivery Equipment 6 1,116,071.43 956,632.65 797,193.88 637,755.10 478,316.33 318,877.55
Factory Equipment 6 269,140.85 242,226.76 215,312.68 188,398.59 161,484.51 134,570.42
Office Equipment 6 447,517.63 402,765.87 358,014.11 313,262.34 268,510.58 223,758.82
Warehouse Equipment 6 81,565.85 73,409.26 65,252.68 57,096.09 48,939.51 40,782.92
Laboratory Equipment 6 26,923.88 24,231.50 21,539.11 18,846.72 16,154.33 13,461.94
Pantry Equipment 6 23,389.29 21,050.36 18,711.43 16,372.50 14,033.57 11,694.64
Plant Building 6 7,142,857.14 6,785,714.29 6,428,571.43 6,071,428.57 5,714,285.71 5,357,142.86
Long-term Investment - - 6,500,000.00 13,000,000.00 19,500,000.00 26,000,000.00
TOTAL NON-CURRENT ASSETS 12,048,828.57 11,282,300.59 17,015,772.60 22,749,244.62 28,482,716.63 34,216,188.65
TOTAL ASSETS 15,000,000.00 24,241,425.73 27,807,689.66 35,309,938.43 43,021,993.05 56,102,659.12
L I A B I L I T I E S A N D S T O C K H O L D E R S' E Q U I T Y
CURRENT LIABILITIES
Accounts Payable 2 - 1,607,421.88 1,607,421.88 1,768,164.06 1,768,164.06 1,944,980.47
SSS Payable 3 - 39,450.00 39,450.00 39,505.00 39,505.00 39,615.00
Philhealth Payable 3 - 15,908.75 15,908.75 16,226.93 16,226.93 16,551.46
HDMF Payable 3 - 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Withholding Tax on Compensation Payable 3 - 36,942.23 36,942.23 38,747.73 38,747.73 40,589.34
Utilities Payable - 106,800.00 112,050.00 117,762.50 123,550.63 130,128.16

Value-Added Tax Payable 11 - 98,292.10 247,830.90 307,635.74 344,167.23 421,057.21
Income Tax Payable 12 - 3,383,820.36 3,100,290.22 4,716,046.52 5,608,514.55 8,360,594.10
TOTAL CURRENT LIABILITIES - 5,293,635.31 5,164,893.98 7,009,088.48 7,943,876.12 10,958,515.74
NON-CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES - - - - - -
TOTAL LIABILITIES 5,293,635.31 5,164,893.98 7,009,088.48 7,943,876.12 10,958,515.74
S T O C K H O L D E R S' E Q U I T Y
Contributed Capital 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00
Retained Earnings - 3,947,790.42 7,642,795.68 13,300,849.95 20,078,116.93 30,144,143.38
TOTAL STOCKHOLDERS' EQUITY 15,000,000.00 18,947,790.42 22,642,795.68 28,300,849.95 35,078,116.93 45,144,143.38
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 15,000,000.00 24,241,425.73 27,807,689.66 35,309,938.43 43,021,993.05 56,102,659.12
152
STATEMENT OF CASH FLOW
2018 2019 2020 2021 2022 2023

Cash Flows from Operating Activities - INDIRECT METHOD
Net Income 7,895,580.84 7,390,010.52 11,316,108.55 13,554,533.95 20,132,052.91
Depreciation- Machine 165,092.60 165,092.60 165,092.60 165,092.60 165,092.60
Depreciation- Delivery Equipment 159,438.78 159,438.78 159,438.78 159,438.78 159,438.78
Depreciation- Factory Equipment 26,914.08 26,914.08 26,914.08 26,914.08 26,914.08
Depreciation- Office Equipment 44,751.76 44,751.76 44,751.76 44,751.76 44,751.76
Depreciation- Warehouse/Storage Equipment 8,156.58 8,156.58 8,156.58 8,156.58 8,156.58
Depreciation- Laboratory Equipment 2,692.39 2,692.39 2,692.39 2,692.39 2,692.39
Depreciation- Pantry Equipment 2,338.93 2,338.93 2,338.93 2,338.93 2,338.93
Depreciation- Plant Building 357,142.86 357,142.86 357,142.86 357,142.86 357,142.86
(Increase) Decrease in Pre-operating Costs (614,960.00) 602,800.00 12,160.00 - - -
(Increase) Decrease in Excess of Input Tax over Output Tax (1,445,859.43) 1,445,859.43 - - - -
(Increase) Decrease in Accounts Receivable (2,769,725.00) (138,486.25) (450,772.74) (167,949.20) (546,674.64)
(Increase) Decrease in Interest Receivable - (156,000.00) (156,000.00) (156,000.00) (156,000.00)
(Increase) Decrease in Inventory (1,928,906.25) - (192,890.63) - (212,179.69)
(Increase) Decrease in Factory Supplies (10,044.27) (2,511.07) (1,481.53) (1,437.59) (1,552.53)
(Increase) Decrease in Office Supplies (5,906.25) (1,136.71) (434.42) (290.54) (276.87)
Increase (Decrease) in Accounts Payable 1,607,421.88 - 160,742.19 - 176,816.41
Increase (Decrease) in Utilities Payable 106,800.00 5,250.00 5,712.50 5,788.13 6,577.53
Increase (Decrease) in SSS Payable 39,450.00 - 55.00 - 110.00
Increase (Decrease) in Philhealth Payable 15,908.75 - 318.18 - 324.54
Increase (Decrease) in Pag-IBIG Payable 5,000.00 - - - -
Increase (Decrease) in Withholding Tax Payable 36,942.23 - 1,805.50 - 1,841.61
Increase (Decrease) in Value-Added Tax Payable 98,292.10 149,538.81 59,804.84 36,531.49 76,889.98
Increase (Decrease) in Income Tax Payable 3,383,820.36 (283,530.14) 1,615,756.30 892,468.03 2,752,079.55
Net Cash provided (used) by Operating Activities (2,060,819.43) 11,289,821.79 7,741,823.15 13,125,251.71 14,930,172.25 22,996,536.78
Cash Flows from Investing Activities

Long-term Investment - - (6,500,000.00) (6,500,000.00) (6,500,000.00) (6,500,000.00)
Acquisition of Land (1,785,714.29) - - - - -
Acquisition of Machine (1,155,648.21) - - - - -
Acquisition of Delivery Equipment (1,116,071.43) - - - - -
Acquisition of Factory Equipment (269,140.85) - - - - -
Acquisition of Office Equipment (447,517.63) - - - - -
Acquisition of Warehouse/Storage Equipment (81,565.85) - - - - -
Acquisition of Laboratory Equipment (26,923.88) - - - - -
Acquisition of Pantry Equipment (23,389.29) - - - - -

Acquisition of Plant Building (7,142,857.14) - - - - -
Net Cash provided (used) by Investing Activities (12,048,828.57) - (6,500,000.00) (6,500,000.00) (6,500,000.00) (6,500,000.00)
Cash Flows from Financing Activities

Cash Received from Stockholders' Contributed Capital 15,000,000.00 - - - - -
Cash Paid To Stockholders' - (3,947,790.42) (3,695,005.26) (5,658,054.27) (6,777,266.97) (10,066,026.45)
Net Cash provided (used) by Financing Activities 15,000,000.00 (3,947,790.42) (3,695,005.26) (5,658,054.27) (6,777,266.97) (10,066,026.45)
Total Cash Inflow (Outflow) 890,352.00 7,342,031.37 (2,453,182.11) 967,197.44 1,652,905.28 6,430,510.33
Add: Beginning Balance - 890,352.00 8,232,383.37 5,779,201.27 6,746,398.70 8,399,303.98
Cash in Bank 890,352.00 8,232,383.37 5,779,201.27 6,746,398.70 8,399,303.98 14,829,814.31
153
STATEMENT OF CASH FLOW
2018 2019 2020 2021 2022 2023

Cash Flows from Operating Activities - DIRECT METHOD
Cash receipts from Cash Customers 65,060,275.00 68,313,288.75 78,901,848.51 82,846,940.93 95,688,216.78
Cash receipts from interest 156,000.00 312,000.00 468,000.00 624,000.00
Less:
Cash paid for suppliers (43,207,500.00) (43,207,500.00) (47,528,250.00) (47,528,250.00) (52,281,075.00)
Cash Paid for Factory Supplies (74,997.20) (82,496.92) (90,746.61) (99,821.27) (109,803.40)
Cash Paid for Office Supplies (44,100.00) (45,972.41) (47,942.99) (49,625.79) (51,367.66)
Cash paid for Salaries (6,797,401.54) (6,797,401.54) (6,924,019.29) (6,924,019.29) (7,052,950.54)
Cash paid for SSS Contributions (433,950.00) (433,950.00) (434,555.00) (434,555.00) (435,765.00)
Cash paid for Philhealth Contributions (174,996.25) (174,996.25) (178,496.18) (178,496.18) (182,066.10)
Cash paid for HDMF Contributions (55,000.00) (55,000.00) (55,000.00) (55,000.00) (55,000.00)
Payment of Withholding Tax (406,364.53) (406,364.53) (426,225.03) (426,225.03) (446,482.74)
Cash paid for Utilities (1,174,800.00) (1,232,550.00) (1,295,387.50) (1,359,056.88) (1,431,409.72)
Cash paid for Organization Costs, Business Permits and Licenses (614,960.00) (12,160.00) (12,160.00) (12,160.00) (12,160.00) (12,160.00)
Cash paid for repair (113,585.98) (113,585.98) (113,585.98) (113,585.98) (113,585.98)
Cash paid for advertising (250,000.00) (300,000.00) (360,000.00) (432,000.00) (518,400.00)
Cash paid for VAT (1,445,859.43) (1,081,213.06) (2,726,139.95) (3,383,993.18) (3,785,839.55) (4,631,629.31)
Payment for Accrued Expenses - (1,909,814.95) (2,064,603.76) (2,293,041.96) (2,335,361.57)
Cash paid for income tax - (3,383,820.36) (3,100,290.22) (4,716,046.52) (5,608,514.55)
Net Cash provided (used) by Operating Activities (2,060,819.43) 11,289,821.79 7,741,823.16 13,125,251.71 14,930,172.25 22,996,536.78
Cash Flow from Investing Activities
Long-term Investment -
Machines (1,155,648.21) - (6,500,000.00) (6,500,000.00) (6,500,000.00) (6,500,000.00)
Delivery Equipment (1,116,071.43) - - - - -
Office Equipment (447,517.63) - - - - -
Factory Equipment (269,140.85) - - - - -
Warehouse/Storage Equipment (81,565.85) - - - - -
Laboratory Equipment (26,923.88) - - - - -
Pantry Equipment (23,389.29) - - - - -
Building (7,142,857.14) - - - - -
Land (1,785,714.29) - - - - -
Net Cash provided (used) by Investing Activities (12,048,828.57) - (6,500,000.00) (6,500,000.00) (6,500,000.00) (6,500,000.00)
Cash Flow from Financing Activities

Cash Received from Stockholders' Contributed Capital 15,000,000.00

Cash Paid To Stockholders' - (3,947,790.42) (3,695,005.26) (5,658,054.27) (6,777,266.97) (10,066,026.45)
Net Cash provided (used) by Financing Activities 15,000,000.00 (3,947,790.42) (3,695,005.26) (5,658,054.27) (6,777,266.97) (10,066,026.45)
Net Change in Cash 890,352.00 7,342,031.37 (2,453,182.11) 967,197.44 1,652,905.28 6,430,510.33

Add: Beginning Balance - 890,352.00 8,232,383.37 5,779,201.27 6,746,398.70 8,399,303.98

Cash in bank 890,352.00 8,232,383.37 5,779,201.27 6,746,398.70 8,399,303.98 14,829,814.31
154
NOTE 1
SALES
Price per Unit 2019 2020 2021 2022 2023

TOTAL SALES (in units) 600,000 600,000 660,000 660,000 726,000
PRODUCT: Unit Sold Total Sales Unit Sold Total Sales Unit Sold Total Sales Unit Sold Total Sales Unit Sold Total Sales
100ML LOTION ₱119.00 570,000 ₱67,830,000.00 570,000 ₱71,221,500.00 627,000 ₱82,260,832.50 627,000 ₱86,373,874.13 689,700 ₱99,761,824.61
TOTAL ₱67,830,000.00 ₱71,221,500.00 ₱82,260,832.50 ₱86,373,874.13 ₱99,761,824.61
Commission Expense
2019 2020 2021 2022 2023
Sales Inclusive of VAT Php 67,830,000.00 Php 71,221,500.00 Php 82,260,832.50 Php 86,373,874.13 Php 99,761,824.61
Less: Output Tax (12%) 7,267,500.00 7,630,875.00 8,813,660.63 9,254,343.66 10,688,766.92
SALES EXCLUSIVE OF VAT 60,562,500.00 63,590,625.00 73,447,171.88 77,119,530.47 89,073,057.69
Commission Expense (5%) Php 3,028,125.00 Php 3,179,531.25 Php 3,672,358.59 Php 3,855,976.52 Php 4,453,652.88

155
NOTE 2
COST OF GOODS SOLD
2019 2020 2021 2022 2023
Raw Materials Inventory, Beg Php - Php 1,928,906.25 Php 1,928,906.25 Php 2,121,796.88 Php 2,121,796.88
Purchases 38,578,125.00 38,578,125.00 42,435,937.50 42,435,937.50 46,679,531.25
Raw Materials Inventory, End (5%) 1,928,906.25 1,928,906.25 2,121,796.88 2,121,796.88 2,333,976.56
Raw Materials Used 36,649,218.75 38,578,125.00 42,243,046.88 42,435,937.50 44,345,554.69
Direct Labor (note 3-c25) 1,807,000.00 1,807,000.00 1,843,140.00 1,843,140.00 1,880,002.80
Factory Overhead 1,822,681.62 1,899,910.99 1,976,856.33 2,054,460.15 2,142,188.19
Total Manufacturing Cost 40,278,900.37 42,285,035.99 46,063,043.20 46,333,537.65 48,367,745.68
Finished Goods Inventory, Beg - 2,013,945.02 2,214,949.05 2,413,899.61 2,437,371.86
COST OF GOODS AVAILABLE FOR SALE 40,278,900.37 44,298,981.01 48,277,992.25 48,747,437.26 50,805,117.54
Finished Goods Inventory, End (5%) 2,013,945.02 2,214,949.05 2,413,899.61 2,437,371.86 2,540,255.88
COST OF GOOD SOLD Php 38,264,955.35 Php 42,084,031.96 Php 45,864,092.64 Php 46,310,065.40 Php 48,264,861.67
2019 2020 2021 2022 2023

Depreciation of Plant Building 178,571.43 178,571.43 178,571.43 178,571.43 178,571.43
Depreciation of Machine 165,092.60 165,092.60 165,092.60 165,092.60 165,092.60
Depreciation of Factory Equipment 26,914.08 26,914.08 26,914.08 26,914.08 26,914.08
Utilities 1,281,600.00 1,344,600.00 1,413,150.00 1,482,607.50 1,561,537.88
Repair and Maintenance 113,585.98 113,585.98 113,585.98 113,585.98 113,585.98
Factory Supplies 56,917.52 71,146.90 79,542.23 87,688.55 96,486.22
Factory Overhead Php 1,822,681.62 Php 1,899,910.99 Php 1,976,856.33 Php 2,054,460.15 Php 2,142,188.19
PURCHASES
2019 2020 2021 2022 2023
Cash 19,289,062.50 19,289,062.50 21,217,968.75 21,217,968.75 23,339,765.63
On-account 19,289,062.50 19,289,062.50 21,217,968.75 21,217,968.75 23,339,765.63
Puchases Php 38,578,125.00 Php 38,578,125.00 Php 42,435,937.50 Php 42,435,937.50 Php 46,679,531.25
2019 2020 2021 2022 2023

Trade Accounts Payable Php - Php 1,607,421.88 Php 1,607,421.88 Php 1,768,164.06 Php 1,768,164.06
Credit Purchases 19,289,062.50 19,289,062.50 21,217,968.75 21,217,968.75 23,339,765.63

Payments 17,681,640.63 19,289,062.50 21,057,226.56 21,217,968.75 23,162,949.22
Trade Accounts Payable Php 1,607,421.88 Php 1,607,421.88 Php 1,768,164.06 Php 1,768,164.06 Php 1,944,980.47
156
NOTE 3
SALARIES & EMPLOYEE BENEFITS
Schedule 3 Salaries Expense

2019 2020 2021
GROSS COMPENSATION Php 6,942,000.00 Php 6,942,000.00 Php 7,080,840.00
13th month pay 578,500.00 578,500.00 590,070.00
GROSS SALARIES 7,520,500.00 Php 7,520,500.00 7,520,500.00 Php 7,520,500.00 7,670,910.00 Php 7,670,910.00
Less:
Inventoriable Salaries
Production Manager (1) 35,000.00 35,000.00 35,700.00
Production Worker 12,000.00 12,000.00 12,240.00
Machine Mechanics 12,000.00 12,000.00 12,240.00
Chemist 20,000.00 20,000.00 20,400.00
TOTAL 139,000.00 139,000.00 141,780.00
ANNUAL 1,668,000.00 1,668,000.00 1,668,000.00 1,668,000.00 1,701,360.00 1,701,360.00
Add: 1,807,000.00 1,843,140.00
WITHHOLDING TAX 443,306.76 443,306.76 464,972.76
SALARIES EXPENSE Php 6,295,806.76 Php 6,295,806.76 6,434,522.76
Schedule 3 Salaries Expense

2022 2023
GROSS COMPENSATION Php 7,080,840.00 Php 7,222,456.80
13th month pay 590,070.00 601,871.40
GROSS SALARIES 7,670,910.00 Php 7,670,910.00 7,824,328.20 Php 7,824,328.20
Less:
Inventoriable Salaries
Production Manager (1) 35,700.00 36,414.00
Production Worker 12,240.00 12,484.80

Machine Mechanics 12,240.00 12,484.80
Chemist 20,400.00 20,808.00

TOTAL 141,780.00 144,615.60
ANNUAL 1,701,360.00 1,701,360.00 1,735,387.20 1,735,387.20
Add: 1,880,002.80
WITHHOLDING TAX 464,972.76 487,072.08
SALARIES EXPENSE 6,434,522.76 6,576,013.08
157
Schedule 3.1SSS Contribution
2019 2020 2021 2022 2023
Yearly SSS Premium-ER Php 312,940.80 Php 312,940.80 Php 313,383.60 Php 313,383.60 Php 314,263.20
Yearly SSS Premium-EC 6,120.00 6,120.00 6,120.00 6,120.00 6,120.00
TOTAL Yearly SSS Premium 319,060.80 319,060.80 319,503.60 319,503.60 320,383.20
LESS: Year-End SSS Payable 26,588.40 26,588.40 26,625.30 26,625.30 26,698.60
Sub-TOTAL 292,472.40 292,472.40 292,878.30 292,878.30 293,684.60
ADD: Previous Payable - 26,588.40 26,588.40 26,625.30 26,625.30
TOTAL Php 292,472.40 Php 319,060.80 Php 319,466.70 Php 319,503.60 Php 320,309.90
Schedule 3.2 PhilHealth Contribution

2019 2020 2021 2022 2023
Yearly PHILHEALTH Premium-ER Php 95,452.50 Php 95,452.50 Php 97,361.55 Php 97,361.55 Php 99,308.78
TOTAL Yearly PHILHEALTH Premium 95,452.50 95,452.50 97,361.55 97,361.55 99,308.78
LESS: Year-End PHILHEALTH Payable 7,954.38 7,954.38 8,113.46 8,113.46 8,275.73
Sub-TOTAL 87,498.13 87,498.13 89,248.09 89,248.09 91,033.05
Schedule 3.3 HDMF Contribution

2019 2020 2021 2022 2023
Yearly PAGIBIG Premium-ER 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
TOTAL Yearly PAGIBIG Premium 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
LESS: Year-End PAGIBIG Payable 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
Sub-TOTAL 27,500.00 27,500.00 27,500.00 27,500.00 27,500.00
TOTAL 27,500.00 30,000.00 30,000.00 30,000.00 30,000.00

158
NOTE 4
SCHEDULE OF PURCHASES
2500 250 000 ML

Raw Materials Percentage Quantity (grams) Price a day Per month Per year
Water 60% 1500 Php - Php - Php -
Madre Cacao Extract 15% 375 79,687.50 1,593,750.00 19,125,000.00
Olive Oil 13% 325 9,343.75 186,875.00 2,242,500.00
Emulsifying Wax 6% 150 37,500.00 750,000.00 9,000,000.00
Glycerin 4% 100 4,125.00 82,500.00 990,000.00
Phenoxyethanol 1% 25 3,750.00 75,000.00 900,000.00
Lavender Oil 1% 25 22,500.00 450,000.00 5,400,000.00
Bottle 2500 pcs 2500 pcs (100ml) 23,125.00 462,500.00 5,550,000.00
Total 2500 Php 180,031.25 Php 3,600,625.00 Php 43,207,500.00
PURCHASES
2019 2020 2021 2022 2023
Cash Php 19,289,062.50 Php 19,289,062.50 Php 21,217,968.75 Php 21,217,968.75 Php 23,339,765.63
On-account 19,289,062.50 19,289,062.50 21,217,968.75 21,217,968.75 23,339,765.63
Purchases Php 38,578,125.00 Php 38,578,125.00 Php 42,435,937.50 Php 42,435,937.50 Php 46,679,531.25
2019 2020 2021 2022 2023

Trade Accounts Payable Php - Php 1,607,421.88 Php 1,607,421.88 Php 1,768,164.06 Php 1,768,164.06
Credit Purchases 19,289,062.50 19,289,062.50 21,217,968.75 21,217,968.75 23,339,765.63
Payments 17,681,640.63 19,289,062.50 21,057,226.56 21,217,968.75 23,162,949.22
Trade Accounts Payable 1,607,421.88 1,607,421.88 1,768,164.06 1,768,164.06 1,944,980.47
2019 2020 2021

RAW MATERIALS COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT
Madre Cacao Extract 31.88 600,000 Php 19,125,000.00 600,000 Php 19,125,000.00 660,000 Php 21,037,500.00
Olive Oil 3.74 600,000 2,242,500.00 600,000 2,242,500.00 660,000 2,466,750.00
Emulsifying Wax 15.00 600,000 9,000,000.00 600,000 9,000,000.00 660,000 9,900,000.00
Glycerin 1.65 600,000 990,000.00 600,000 990,000.00 660,000 1,089,000.00
Phenoxyethanol 1.50 600,000 900,000.00 600,000 900,000.00 660,000 990,000.00
Lavender Oil 9.00 600,000 5,400,000.00 600,000 5,400,000.00 660,000 5,940,000.00
Bottle 9.25 600,000 5,550,000.00 600,000 5,550,000.00 660,000 6,105,000.00
TOTAL 72.01 43,207,500.00 43,207,500.00 47,528,250.00
Less: Vat 4,629,375.00 4,629,375.00 5,092,312.50
TOTAL (Vat Exclusive) Php 38,578,125.00 Php 38,578,125.00 Php 42,435,937.50
2022 2023
RAW MATERIALS COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT
Madre Cacao Extract 31.88 660,000 Php 21,037,500.00 726,000 Php 23,141,250.00
Olive Oil 3.74 660,000 2,466,750.00 726,000 2,713,425.00
Emulsifying Wax 15.00 660,000 9,900,000.00 726,000 10,890,000.00

Glycerin 1.65 660,000 1,089,000.00 726,000 1,197,900.00
Phenoxyethanol 1.50 660,000 990,000.00 726,000 1,089,000.00
Lavender Oil 9.00 660,000 5,940,000.00 726,000 6,534,000.00
Bottle 9.25 660,000 6,105,000.00 726,000 6,715,500.00

TOTAL 72.01 47,528,250.00 52,281,075.00
Less: Vat 5,092,312.50 5,601,543.75
TOTAL (Vat Exclusive) Php 42,435,937.50 Php 46,679,531.25
159
Factory Supplies
ITEM Quantity and Price per Unit 2019 2020 2021 2022 2023
Butane Gas Can 100 set (250 pesos each) Php 25,000.00 Php 27,500.00 Php 30,250.00 Php 33,275.00 Php 36,602.50
First aid kit 2 box (1500 pesos each) 3,000.00 3,300.00 3,630.00 3,993.00 4,392.30
5 boxes (300 pesos
Hair net 1,500.00 1,650.00 1,815.00 1,996.50 2,196.15
each)
Safety gloves-pair 40 pcs (300 pesos each) 12,000.00 13,200.00 14,520.00 15,972.00 17,569.20
Safety goggles 10 pcs (500 pesos each) 5,000.00 5,500.00 6,050.00 6,655.00 7,320.50
10 pcs (399.75 pesos
Garbage Can 3,997.50 4,397.25 4,836.98 5,320.67 5,852.74
each)
100 boxes (35 pesos
Garbage bag 3,500.00 3,850.00 4,235.00 4,658.50 5,124.35
each)
6 pcs (399.95 pesos
Broom and dustpan 2,399.70 2,639.67 2,903.64 3,194.00 3,513.40
each)
100 pcs (150.00 pesos
Tape 15,000.00 16,500.00 18,150.00 19,965.00 21,961.50
eac h)
Floor mop 3 pcs (1200 pesos each) 3,600.00 3,960.00 4,356.00 4,791.60 5,270.76
TOTAL 74,997.20 82,496.92 90,746.61 99,821.27 109,803.40
Input VAT 8,035.41 8,838.96 9,722.85 10,695.14 11,764.65
New Purchases (100%) net of vat 66,961.79 73,657.96 81,023.76 89,126.14 98,038.75
ADD: Beginning Balance - 10,044.27 12,555.33 14,036.86 15,474.45
Sub-TOTAL 66,961.79 83,702.23 93,579.10 103,163.00 113,513.20
Ending Balance (15%) 10,044.27 12,555.33 14,036.86 15,474.45 17,026.98
Office Supplies
ITEM Quantity and Price per Unit 2019 2020 2021 2022 2023
Calculator 10 pcs (500 pesos each) Php 5,000.00 Php 5,500.00 Php 6,050.00 Php 6,262.36 Php 6,482.16
Puncher 10 pcs (200 pesos each) 2,000.00 2,070.20 2,142.86 2,218.08 2,295.93
25 boxes (50 pesos
Binder Clip 1250 1,293.88 1,339.29 1,386.30 1,434.96
each)
50 boxes(120 pesos
Glue 6,000.00 6,210.60 6,428.59 6,654.24 6,887.80
each)
10 boxes (100 pesos
Stappler 1000 1,035.10 1,071.43 1,109.04 1,147.97
each)
50 Boxes (40 pesos
Stapples 2000 2,070.20 2,142.86 2,218.08 2,295.93
each)
100 Pcs (120 pesos
Tape 12,000.00 12,421.20 12,857.18 13,308.47 13,775.60
each)
Tape Dispenser 3 pcs (200 pesos each) 600.00 621.06 642.86 665.42 688.78
10 boxes (250pesos
Ballpen 2,500.00 2,587.75 2,678.58 2,772.60 2,869.92
each)
20 Boxes (200 pesos
Pencil 4,000.00 4,140.40 4,285.73 4,436.16 4,591.87
each)
Scissors 10 Pcs (50 pesos each) 500.00 517.55 535.72 554.52 573.98
Cutter Knife 4 Pcs (150 pesos each) 600.00 621.06 642.86 665.42 688.78
10 Boxes (250 pesos
Marker 2,500.00 2,587.75 2,678.58 2,772.60 2,869.92
each)
5 Boxes (250 pesos
Paper Clip 1,250.00 1,293.88 1,339.29 1,386.30 1,434.96
each)

Sharpener 10 Pcs (50 pesos each) 500 517.55 535.72 554.52 573.98
5 Boxes (120 pesos
Fastener 600.00 621.06 642.86 665.42 688.78
each)
10 Ream (120 pesos
Bond Paper 1,200.00 1,242.12 1,285.72 1,330.85 1,377.56
each)
2 Ream (300 pesos

Folder 600.00 621.06 642.86 665.42 688.78
each)
TOTAL 44,100.00 45,972.41 47,942.99 49,625.79 51,367.66
Input VAT 4,725.00 4,925.62 5,136.75 5,317.05 5,503.68
New Purchases (100%) net of vat 39,375.00 41,046.79 42,806.24 44,308.74 45,863.98
ADD: Beginning Balance 5,906.25 7,042.96 7,477.38 7,767.92
Sub-TOTAL 39,375.00 46,953.04 49,849.20 51,786.12 53,631.90
Ending Balance (15%) 5,906.25 7,042.96 7,477.38 7,767.92 8,044.78
160
NOTE 5
SCHEDULE OF ACCOUNTS RECEIVABLE
2019 2020 2021 2022 2023

Cash Sales Php 33,915,000.00 Php 35,610,750.00 Php 41,130,416.25 Php 43,186,937.06 Php 49,880,912.31
Credit Sales 33,915,000.00 35,610,750.00 41,130,416.25 43,186,937.06 49,880,912.31
Total Sales 67,830,000.00 71,221,500.00 82,260,832.50 86,373,874.13 99,761,824.61
Output Vat 7,267,500.00 7,630,875.00 8,813,660.63 9,254,343.66 10,688,766.92
Total Sales, VAT excluded Php 60,562,500.00 Php 63,590,625.00 Php 73,447,171.88 Php 77,119,530.47 Php 89,073,057.69
2019 2020 2021 2022 2023

Accounts Receivable Php - Php 2,826,250.00 Php 2,967,562.50 Php 3,427,534.69 Php 3,598,911.42
Credit Sales 33,915,000.00 35,610,750.00 41,130,416.25 43,186,937.06 49,880,912.31
Collections 31,088,750.00 35,469,437.50 40,670,444.06 43,015,560.33 49,323,081.04
Accounts Receivable, End 2,826,250.00 2,967,562.50 3,427,534.69 3,598,911.42 4,156,742.69
Allowance for Doubtful Accounts 56,525.00 59,351.25 68,550.69 71,978.23 83,134.85
Net Accounts Receivable Php 2,769,725.00 Php 2,908,211.25 Php 3,358,983.99 Php 3,526,933.19 Php 4,073,607.84
2019 2020 2021 2022 2023

Required Allowance (2% of AR) Php 56,525.00 Php 59,351.25 Php 68,550.69 Php 71,978.23 Php 83,134.85
Less: Credit balance in allowance - 56,525.00 59,351.25 68,550.69 71,978.23
Doubtful Accounts Expense Php 56,525.00 Php 2,826.25 Php 9,199.44 Php 3,427.53 Php 11,156.63

161
NOTE 6
SCHEDULE OF FIXED ASSETS
Schedule of Depreciation Expense - Machines
ITEM QTY. UNIT COST TOTAL COST VAT NET OF VAT USEFUL LIFE (in years) ANNUAL DEPRECIATION
Machines 3 ₱1,294,326.00 ₱1,294,326.00 7 Php165,092.60

TOTAL ₱1,294,326.00 ₱138,677.79 ₱1,155,648.21 Php165,092.60
Schedule of Depreciation Expense - Delivery Equipment
DELIVERY TRUCK 1 ₱1,250,000.00 ₱1,250,000.00 ₱133,928.57 ₱1,116,071.43 7 159,438.78
TOTAL ₱1,250,000.00 ₱133,928.57 ₱1,116,071.43 Php159,438.78
Schedule of Depreciation Expense - Office Equipment
40-inch Smart TV 2 PHP 9,999.00 19,998.00 2,142.64 17,855.36 10 1,785.54

Multi-function printer 3 PHP 5,100.00 15,300.00 1,639.29 13,660.71 10 1,366.07
Biometrics 1 PHP 1,580.00 1,580.00 169.29 1,410.71 10 141.07
Line Corded Telephone 5 PHP 3,300.00 16,500.00 1,767.86 14,732.14 10 1,473.21
HP Laptop 12 PHP 14,999.00 179,988.00 19,284.43 160,703.57 10 16,070.36
Split-type Inverter Aircon 4 PHP 23,800.00 95,200.00 10,200.00 85,000.00 10 8,500.00
Floor mounted aircon 1 PHP 65,299.00 65,299.00 6,996.32 58,302.68 10 5,830.27
Fire Extinguisher 1 PHP 1,499.75 1,499.75 160.69 1,339.06 10 133.91
Conference Table 1 PHP 14,950.00 14,950.00 1,601.79 13,348.21 10 1,334.82
Office Table 10 PHP 2,515.00 25,150.00 2,694.64 22,455.36 10 2,245.54
Office Chair 20 PHP 1,788.00 35,760.00 3,831.43 31,928.57 10 3,192.86
Filing Cabinet 5 PHP 5,999.00 29,995.00 3,213.75 26,781.25 10 2,678.13
TOTAL 65 PHP 150,828.75 ₱501,219.75 ₱53,702.12 ₱447,517.63 Php44,751.76
Schedule of Depreciation Expense - Factory Equipment
Steel Locker 2 PHP 9,999.00 19,998.00 2,142.64 17,855.36 10 1,785.54

Warehouse Cooling Fan 2 PHP 106,000.00 212,000.00 22,714.29 189,285.71 10 18,928.57
Trolley Push Cart 5 PHP 1,799.00 8,995.00 963.75 8,031.25 10 803.13
Gang Chair 2 PHP 6,299.00 12,598.00 1,349.79 11,248.21 10 1,124.82

Portable Pressure Washer Sprayer 4 PHP 5,487.00 21,948.00 2,351.57 19,596.43 10 1,959.64
Blow Torch 2 PHP 700.00 1,400.00 150.00 1,250.00 10 125.00
Steel Container Drums 20 PHP 800.00 16,000.00 1,714.29 14,285.71 10 1,428.57
TOTAL 42 PHP 132,783.75 ₱301,437.75 ₱32,296.90 ₱269,140.85 Php26,914.08
162
Schedule of Depreciation Expense - Warehouse/Storage Equipment
Racks 2 PHP 5,500.00 11,000.00 1,178.57 9,821.43 10 982.14
Trolley Push Cart 1 PHP 1,799.00 1,799.00 192.75 1,606.25 10 160.63

Office Table 2 PHP 2,515.00 5,030.00 538.93 4,491.07 10 449.11
Office Chair 2 PHP 1,788.00 3,576.00 383.14 3,192.86 10 319.29
Filing Cabinet 1 PHP 3,150.00 3,150.00 337.50 2,812.50 10 281.25
Floor mounted aircon 1 PHP 65,299.00 65,299.00 6,996.32 58,302.68 10 5,830.27
TOTAL 10 PHP 81,550.75 ₱91,353.75 ₱9,787.90 ₱81,565.85 Php8,156.58
Schedule of Depreciation Expense - Laboratory Equipment
Office Table 2 PHP 2,515.00 5,030.00 538.93 4,491.07 10 449.11

Office Chair 2 PHP 1,788.00 3,576.00 383.14 3,192.86 10 319.29
Laboratory Table 1 PHP 5,000.00 5,000.00 535.71 4,464.29 10 446.43
Measuring cylinder 1000ml 2 PHP 1,050.00 2,100.00 225.00 1,875.00 10 187.50
Beaker (glass) 250ml (2pcs) 5 PHP 100.00 500.00 53.57 446.43 10 44.64
Graduated pipette 5ml (2pcs) 2 PHP 100.00 200.00 21.43 178.57 10 17.86
Test tube rack (6 holes) 2 PHP 90.00 180.00 19.29 160.71 10 16.07
Test tube 10x75mm (100pcs) 1 PHP 100.00 100.00 10.71 89.29 10 8.93
Lab white coat (2pcs) 1 PHP 650.00 650.00 69.64 580.36 10 58.04
Bunsen burner (1pc) 2 PHP 250.00 500.00 53.57 446.43 10 44.64
Boiling Flask 500ml (1pc) 2 PHP 350.00 700.00 75.00 625.00 10 62.50
Petri Dish 90m Glass (20pcs) 1 PHP 120.00 120.00 12.86 107.14 10 10.71
Airconditioning Unit 1 PHP 9,999.00 9,999.00 1,071.32 8,927.68 10 892.77
TOTAL 25 PHP 23,611.75 ₱30,154.75 ₱3,230.87 ₱26,923.88 Php2,692.39
Schedule of Depreciation Expense - Pantry Equipment

Tables and Chairs 15 PHP 1,079.80 16,197.00 1,735.39 14,461.61 10 1,446.16
Air Conditioner 1 PHP 9,999.00 9,999.00 1,071.32 8,927.68 10 892.77
TOTAL 16 PHP 11,078.80 ₱26,196.00 ₱2,806.71 ₱23,389.29 Php2,338.93
Schedule of Depreciation Expense - Building

Building 1 Php 8,000,000.00 Php 8,000,000.00 857,142.86 7,142,857.14 20 357,142.86

TOTAL ₱8,000,000.00 ₱857,142.86 Php7,142,857.14

Schedule of Depreciation Expense - Land
ITEM QTY. UNIT COST TOTAL COST VAT NET OF VAT
Land 1 Php 2,000,000.00 2,000,000.00 214,285.71 1,785,714.29

TOTAL ₱2,000,000.00 ₱214,285.71 Php1,785,714.29
163
Schedule of Accumulated Depreciation
2019 2020 2021 2022 2023
Vat Exclusive:
Machine Php 165,092.60 Php 330,185.20 Php 495,277.81 Php 660,370.41 Php 825,463.01
Factory Equipment Php 26,914.08 Php 53,828.17 Php 80,742.25 Php 107,656.34 Php 134,570.42
Delivery Equipment Php 159,438.78 Php 318,877.55 Php 478,316.33 Php 637,755.10 Php 797,193.88
Office Equipment Php 44,751.76 Php 89,503.53 Php 134,255.29 Php 179,007.05 Php 223,758.82
Warehouse/Storage Equipment Php 8,156.58 Php 16,313.17 Php 24,469.75 Php 32,626.34 Php 40,782.92
Laboratory Equipment Php 2,692.39 Php 5,384.78 Php 8,077.17 Php 10,769.55 Php 13,461.94
Pantry Equipment Php 2,338.93 Php 4,677.86 Php 7,016.79 Php 9,355.71 Php 11,694.64
Plant Building Php 357,142.86 Php 714,285.71 Php 1,071,428.57 Php 1,428,571.43 Php 1,785,714.29

164
NOTE 7
SCHEDULE OF DEPRECIATION
Schedule of Property, Plant and Equipment (BS)

(In Philippine Peso)
2019 Land Building Machine Office Equipment Delivery Equipment Factory Equipment Warehouse Equipment Laboratory Equipment Pantry Equipment Total
Historical Cost Php 1,785,714.29 Php 7,142,857.14 Php 1,155,648.21 Php 447,517.63 Php 1,116,071.43 Php 269,140.85 Php 81,565.85 Php 26,923.88 Php 23,389.29 Php12,048,828.57
Less: Accumulated Depreciation
Cost of Good Sold - 178,571.43 165,092.60 - - 26,914.08 - - - 370,578.12
Selling and Administrative Expenses - 178,571.43 - 44,751.76 159,438.78 - 8,156.58 2,692.39 2,338.93 395,949.87
Carrying Value Php 1,785,714.29 Php 6,785,714.29 Php 990,555.61 Php 402,765.87 Php 956,632.65 Php 242,226.76 Php 73,409.26 Php 24,231.50 Php 21,050.36 11,282,300.59
Cost of Good Sold - 357,142.86 330,185.20 - - 53,828.17 - - - 741,156.23
Selling and Administrative Expenses - 357,142.86 - 89,503.53 318,877.55 - 16,313.17 5,384.78 4,677.86 791,899.74
Cost of Good Sold - 535,714.29 495,277.81 - - 80,742.25 - - - 1,111,734.35
Selling and Administrative Expenses - 535,714.29 - 134,255.29 478,316.33 - 24,469.75 8,077.17 7,016.79 1,187,849.61
Cost of Good Sold - 714,285.71 660,370.41 - - 107,656.34 - - - 1,482,312.46
Cost of Good Sold - 892,857.14 825,463.01 - - 134,570.42 - - - 1,852,890.58

165
NOTE 8
SCHEDULE OF UTILITIES EXPENSE
2019 2020 2021 2022 2023

Electricity Bill Php 80,000.00 Php 84,000.00 Php 88,200.00 Php 92,610.00 Php 97,240.50
Water Bill 25,000.00 26,250.00 27,562.50 28,940.63 30,387.66
Communication and Internet Service 1,800.00 1,800.00 2,000.00 2,000.00 2,500.00
Monthly Expense 106,800.00 112,050.00 117,762.50 123,550.63 130,128.16
Annual Utilities Expense Php 1,281,600.00 Php 1,344,600.00 Php 1,413,150.00 Php 1,482,607.50 Php 1,561,537.88

166
NOTE 9
SCHEDULE OF REPAIR AND MAINTENANCE
2019 2020 2021 2022 2023

Delivery Truck Php 55,803.57 Php 55,803.57 Php 55,803.57 Php 55,803.57 Php 55,803.57
Machines 57,782.41 57,782.41 57,782.41 57,782.41 57,782.41
Total Php 113,585.98 Php 113,585.98 Php 113,585.98 Php 113,585.98 Php 113,585.98

167
NOTE 10
SCHEDULE OF ADVERTISING EXPENSE
2019 2020 2021 2022 2023

Expense:
Advertising Fee Php 15,000.00 Php 18,000.00 Php 21,600.00 Php 25,920.00 Php 31,104.00
Catalogs and Brochures 35,000.00 42,000.00 50,400.00 60,480.00 72,576.00
CSR Expenditure 150,000.00 180,000.00 216,000.00 259,200.00 311,040.00
Promotional and Public Relation 35,000.00 42,000.00 50,400.00 60,480.00 72,576.00
Business Cards 5,000.00 6,000.00 7,200.00 8,640.00 10,368.00
Tarpaulin 10,000.00 12,000.00 14,400.00 17,280.00 20,736.00
Total Php 250,000.00 Php 300,000.00 Php 360,000.00 Php 432,000.00 Php 518,400.00

168
NOTE 11
VAT PAYABLE
INPUT VAT
2019 2020 2021 2022 2023
TOTAL COST (VAT INCLUSIVE) Php 3,112,565.45 Php 128,469.33 Php 138,689.60 Php 149,447.06 Php 161,171.06
INVENTORIABLE COST 1,717,272.25 82,496.92 90,746.61 99,821.27 109,803.40
PERIOD COST 1,395,293.20 45,972.41 47,942.99 49,625.79 51,367.66
Less: Input VAT (12%) 333,489.16 13,764.57 14,859.60 16,012.19 17,268.33
INVENTORIABLE COST 183,993.46 8,838.96 9,722.85 10,695.14 11,764.65
PERIOD COST 149,495.70 4,925.62 5,136.75 5,317.05 5,503.68
TOTAL COST (VAT EXCLUSIVE) Php 2,779,076.29 Php 114,704.76 Php 123,830.00 Php 133,434.88 Php 143,902.73
OUTPUT VAT
2019 2020 2021 2022 2023
Sales Inclusive of VAT Php 67,830,000.00 Php 71,221,500.00 Php 82,260,832.50 Php 86,373,874.13 Php 99,761,824.61
Less: Output Tax (12%) 7,267,500.00 7,630,875.00 8,813,660.63 9,254,343.66 10,688,766.92
SALES EXCLUSIVE OF VAT Php 60,562,500.00 Php 63,590,625.00 Php 73,447,171.88 Php 77,119,530.47 Php 89,073,057.69
VAT PAYABLE
2018 2019 2020 2021 2022 2023
Output VAT - Php 7,267,500.00 Php 7,630,875.00 Php 8,813,660.63 Php 9,254,343.66 Php10,688,766.92
Less: Input VAT 1,445,859.43 6,087,994.84 4,656,904.14 5,122,031.70 5,124,336.87 5,636,080.40
VAT PAYABLE (1,445,859.43) 1,179,505.16 2,973,970.86 3,691,628.92 4,130,006.79 5,052,686.52
VAT Payable, monthly - Php 98,292.10 Php 247,830.90 Php 307,635.74 Php 344,167.23 Php 421,057.21
VAT Disbursement - 1,081,213.06 2,726,139.95 3,383,993.18 3,785,839.55 4,631,629.31
2018 2019 2020 2021 2022 2023

Machines 138,677.79 - - - - -
Delivery Equipment 133,928.57 - - - - -
Office Equipment 53,702.12 - - - - -
Factory Equipment 32,296.90 - - - - -

Warehouse/Storage Equipment 9,787.90 - - - - -
Laboratory Equipment 3,230.87 - - - - -
Pantry Equipment 2,806.71 - - - - -
Building 857,142.86 - - - - -
Land 214,285.71 - - - - -
Inventory - 4,629,375.00 4,629,375.00 5,092,312.50 5,092,312.50 5,601,543.75
Factory Supplies - 8,035.41 8,838.96 9,722.85 10,695.14 11,764.65
Office Supplies - 4,725.00 4,925.62 5,136.75 5,317.05 5,503.68
Total Php 1,445,859.43 Php 4,642,135.41 Php 4,643,139.57 Php 5,107,172.10 Php 5,108,324.69 Php 5,618,812.08
169
NOTE 12
ANNUAL INCOMETAX
2019 2020 2021 2022 2023

Regular Corporate Income Tax (30%) Php 3,383,820.36 Php 3,100,290.22 Php 4,716,046.52 Php 5,608,514.55 Php 8,360,594.10
Minimum Corporate Income Tax (2%) - - - 373,900.97 557,372.94
Provision For Income Tax (whichever is higher) Php 3,383,820.36 Php 3,100,290.22 Php 4,716,046.52 Php 5,608,514.55 Php 8,360,594.10
*Minimum Corporate Income Tax is 2% of gross income if higher than RCIT. The computation was made on 4th taxable year immediate following the year the project
feasibility study has commenced business.

170
SALARIES
2019-2020
POSTION GROSS MONTHLY SSS PHILHEALTH PAGIBIG
ER EE EC ER EE ER EE
PRESIDENT Php 80,000.00 Php 1,178.70 Php 581.30 Php 30.00 Php 1,100.00 Php 1,100.00 Php 100.00 Php 100.00
Executive Secretary 25,000.00 1,178.70 581.30 30.00 Php 343.75 Php 343.75 100.00 100.00
General Manager 40,000.00 1,178.70 581.30 30.00 Php 550.00 Php 550.00 100.00 100.00
Production Manager 35,000.00 1,178.70 581.30 30.00 Php 481.25 Php 481.25 100.00 100.00
Production Worker 12,000.00 884.00 436.00 10.00 Php 165.00 Php 165.00 100.00 100.00
Machine Mechanics 12,000.00 884.00 436.00 10.00 Php 165.00 Php 165.00 100.00 100.00
Chemist 20,000.00 1,178.70 581.30 30.00 Php 275.00 Php 275.00 100.00 100.00
Marketing Manager 35,000.00 1,178.70 581.30 30.00 Php 481.25 Php 481.25 100.00 100.00
Marketing Staff 30,000.00 1,178.70 581.30 30.00 Php 412.50 Php 412.50 100.00 100.00
Accounting Head 37,500.00 1,178.70 581.30 30.00 Php 515.63 Php 515.63 100.00 100.00
Accounting Staff 20,000.00 1,178.70 581.30 30.00 Php 275.00 Php 275.00 100.00 100.00
Human Resource Manager 32,000.00 1,178.70 581.30 30.00 Php 440.00 Php 440.00 100.00 100.00
Logistics Manager 18,000.00 1,178.70 581.30 30.00 Php 247.50 Php 247.50 100.00 100.00
Company Driver 14,000.00 1,031.30 508.70 30.00 Php 192.50 Php 192.50 100.00 100.00
Company Helper 12,000.00 884.00 436.00 10.00 Php 165.00 Php 165.00 100.00 100.00
Warehouse Manager 30,000.00 1,178.70 581.30 10.00 Php 412.50 Php 412.50 100.00 100.00
Utilities Maintenance 12,000.00 884.00 436.00 10.00 Php 165.00 Php 165.00 100.00 100.00
TOTAL MONTHLY 578,500.00 26,078.40 12,861.60 510.00 7,954.38 7,954.38 2,500.00 2,500.00
TOTAL ANNUALLY Php 6,942,000.00 Php 312,940.80 Php 154,339.20 Php 6,120.00 Php 95,452.50 Php 95,452.50 Php 30,000.00 Php 30,000.00
SALARIES
2019-2020
POSTION GROSS MONTHLY BIR 1601C TOTAL NET MONTHLY SALARY 13TH MONTH PAY NET ANNUAL SALARY
Withholding Tax
PRESIDENT Php 80,000.00 Php 14,833.23 Php 16,614.53 Php 63,385.47 Php 80,000.00 Php 840,625.64
Executive Secretary 25,000.00 833.40 1,858.45 23,141.55 25,000.00 302,698.60
General Manager 40,000.00 4,166.75 5,398.05 34,601.95 40,000.00 455,223.40
Production Manager 35,000.00 2,916.75 4,079.30 30,920.70 35,000.00 406,048.40
Production Worker 12,000.00 - 701.00 11,299.00 12,000.00 147,588.00
Machine Mechanics 12,000.00 - 701.00 11,299.00 12,000.00 147,588.00
Chemist 20,000.00 - 956.30 19,043.70 20,000.00 248,524.40
Marketing Manager 35,000.00 2,916.75 4,079.30 30,920.70 35,000.00 406,048.40

Marketing Staff 30,000.00 1,833.40 2,927.20 27,072.80 30,000.00 354,873.60
Marketing Staff 30,000.00 1,833.40 2,927.20 27,072.80 30,000.00 354,873.60
Accounting Head 37,500.00 3,541.75 4,738.68 32,761.33 37,500.00 430,635.90
Accounting Staff 20,000.00 - 956.30 19,043.70 20,000.00 248,524.40
Human Resource Manager 32,000.00 2,233.40 3,354.70 28,645.30 32,000.00 375,743.60
Logistics Manager 18,000.00 - 928.80 17,071.20 18,000.00 222,854.40

Company Driver 14,000.00 - 801.20 13,198.80 14,000.00 172,385.60
Company Helper 12,000.00 - 701.00 11,299.00 12,000.00 147,588.00
Warehouse Manager 30,000.00 1,833.40 2,927.20 27,072.80 30,000.00 354,873.60
Utilities Maintenance 12,000.00 - 701.00 11,299.00 12,000.00 147,588.00
TOTAL MONTHLY 578,500.00 36,942.23 60,258.21 518,241.80 48,208.33 566,450.13
TOTAL ANNUALLY Php 6,942,000.00 Php 443,306.76 Php 723,098.46 Php 6,218,901.54 Php 578,500.00 Php 6,797,401.54
171
SALARIES
2021-2022
Chemist 20,400.00 1,178.70 581.30 30.00 Php 280.50 Php 280.50 100.00 100.00
TOTAL MONTHLY 590,070.00 26,115.30 12,879.70 510.00 8,113.46 8,113.46 2,500.00 2,500.00
SALARIES
2021-2022
Withholding Tax
Executive Secretary 25,500.00 933.40 1,965.33 23,534.68 25,500.00 307,916.10
General Manager 40,800.00 4,366.75 5,609.05 35,190.95 40,800.00 463,091.40
Chemist 20,400.00 - 961.80 19,438.20 20,400.00 253,658.40
Marketing Staff 30,600.00 1,953.40 3,055.45 27,544.55 30,600.00 361,134.60

Marketing Staff 30,600.00 1,953.40 3,055.45 27,544.55 30,600.00 361,134.60
Accounting Head 38,250.00 3,729.25 4,936.49 33,313.51 38,250.00 438,012.15

Company Driver 14,280.00 - 823.15 13,456.85 14,280.00 175,762.20
Company Helper 12,240.00 - 704.30 11,535.70 12,240.00 150,668.40
TOTAL MONTHLY 590,070.00 38,747.73 62,240.89 527,829.11 49,172.50 577,001.61
172
SALARIES
2023
Chemist 20,808.00 1,178.70 581.30 30.00 Php 286.11 Php 286.11 100.00 100.00
TOTAL MONTHLY 601,871.40 26,188.60 12,916.40 510.00 8,275.73 8,275.73 2,500.00 2,500.00
SALARIES
2023
Withholding Tax
Executive Secretary 26,010.00 1,035.40 2,074.34 23,935.66 26,010.00 313,237.95
General Manager 41,616.00 4,570.75 5,824.27 35,791.73 41,616.00 471,116.76
Chemist 20,808.00 - 967.41 19,840.59 20,808.00 258,895.08
Marketing Staff 31,212.00 2,075.80 3,186.27 28,025.74 31,212.00 367,520.82
Marketing Staff 31,212.00 2,075.80 3,186.27 28,025.74 31,212.00 367,520.82

Accounting Head 39,015.00 3,920.50 5,138.26 33,876.74 39,015.00 445,535.93
Company Driver 14,565.60 - 827.08 13,738.52 14,565.60 179,427.88

Company Helper 12,484.80 - 562.37 11,922.43 12,484.80 155,554.01
TOTAL MONTHLY 601,871.40 40,589.34 64,281.47 537,589.93 50,155.95 587,745.88
173
COST OF PRODUCTION
2019 2020 2021 2022 2023
RAW MATERIALS 43,207,500.00 43,207,500.00 47,528,250.00 47,528,250.00 52,281,075.00
DIRECT LABOR 1,807,000.00 1,807,000.00 1,843,140.00 1,843,140.00 1,880,002.80
FACTORY OVERHEAD 1,822,681.62 1,899,910.99 1,976,856.33 2,054,460.15 2,142,188.19
TOTAL Php 46,837,181.62 Php 46,914,410.99 Php 51,348,246.33 Php 51,425,850.15 Php 56,303,265.99
2019 2020 2021

RAW MATERIALS COST PER UNIT NUMBER OF UNITS PRODUCEDTOTAL COST PER UNIT NUMBER OF UNITS PRODUCEDTOTAL COST PER UNIT NUMBER OF UNITS PRODUCEDTOTAL COST PER UNIT
Madre Cacao Extract 31.88 600,000 Php 19,125,000.00 600,000 Php 19,125,000.00 660,000 Php 21,037,500.00
Olive Oil 3.74 600,000 2,242,500.00 600,000 2,242,500.00 660,000 2,466,750.00
Emulsifying Wax 15.00 600,000 9,000,000.00 600,000 9,000,000.00 660,000 9,900,000.00
Glycerin 1.65 600,000 990,000.00 600,000 990,000.00 660,000 1,089,000.00
Phenoxyethanol 1.50 600,000 900,000.00 600,000 900,000.00 660,000 990,000.00
Lavender Oil 9.00 600,000 5,400,000.00 600,000 5,400,000.00 660,000 5,940,000.00
Bottle 9.25 600,000 5,550,000.00 600,000 5,550,000.00 660,000 6,105,000.00
TOTAL 72.01 Php 43,207,500.00 Php 43,207,500.00 Php 47,528,250.00
2022 2023
RAW MATERIALS COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT NUMBER OF UNITS PRODUCED TOTAL COST PER UNIT
Madre Cacao Extract 31.88 660,000 Php 21,037,500.00 726,000 Php 23,141,250.00
Olive Oil 3.74 660,000 2,466,750.00 726,000 2,713,425.00
Emulsifying Wax 15.00 660,000 9,900,000.00 726,000 10,890,000.00
Glycerin 1.65 660,000 1,089,000.00 726,000 1,197,900.00
Phenoxyethanol 1.50 660,000 990,000.00 726,000 1,089,000.00
Lavender Oil 9.00 660,000 5,940,000.00 726,000 6,534,000.00
Bottle 9.25 660,000 6,105,000.00 726,000 6,715,500.00
TOTAL 72.01 Php 47,528,250.00 Php 52,281,075.00
COST PER UNIT

2019 2020 2021 2022 2023
RM/UNIT 72.01 72.01 72.01 72.01 72.01
DL/UNIT 3.011666667 3.011666667 2.79 2.79 2.59
OH/UNIT 3.04 3.17 3.00 3.11 2.95
COST/UNIT Php 78.06 Php 78.19 Php 77.80 Php 77.92 Php 77.55

174
FINANCIAL ANALYSIS
Analysis Formula 2019 2020 2021 2022 2023
1. Current Ratio Current Assets Php 12,959,125.14 Php 10,791,917.06 Php 12,560,693.81 Php 14,539,276.42 Php 21,886,470.47
Current Liabilities Php 5,293,635.31 Php 5,164,893.98 Php 7,009,088.48 Php 7,943,876.12 Php 10,958,515.74
2.45 2.09 1.79 1.83 2.00
2. Working Capital to Total Asset Ratio Shareholder's Equity Php 18,947,790.42 Php 22,642,795.68 Php 28,300,849.95 Php 35,078,116.93 Php 45,144,143.38
Total Assets Php 24,241,425.73 Php 27,807,689.66 Php 35,309,938.43 Php 43,021,993.05 Php 56,102,659.12
0.78 0.81 0.80 0.82 0.80
3. Return On Equity Net Income Php 7,895,580.84 Php 7,234,010.52 Php 11,004,108.55 Php 13,086,533.95 Php 19,508,052.91
Shareholder's Equity Php 18,947,790.42 Php 22,642,795.68 Php 28,300,849.95 Php 35,078,116.93 Php 45,144,143.38
0.42 0.32 0.39 0.37 0.43
4. Payback Period Net Income Php 7,895,580.84 Php 7,390,010.52 Php 11,316,108.55 Php 13,554,533.95 Php 20,132,052.91
Capital Requirement Php - Php (7,895,580.84) Php (505,570.32)
Php (7,895,580.84) Php (505,570.32)
2 Years and 1 Month Paynack period 1 yr 1 yr Php 0.04

175
APPENDICES
MACHINERIES
PRICE PER
ITEM QUANTITY VAT PER UNIT TOTAL AMOUNT TOTAL VAT NET OF VAT
QUANTITY
Cosmetic Making Emulsfying
1 PHP 324,000.00 PHP 34,714.29 PHP 324,000.00 PHP 34,714.29 PHP 289,285.71
Mixer Machine
Automatic lotion/liquid soap
1 PHP 529,200.00 PHP 56,700.00 PHP 529,200.00 PHP 56,700.00 PHP 472,500.00
bottle filling machine
Industrial Labeling Machine 1 PHP 441,126.00 PHP 47,263.50 PHP 441,126.00 PHP 47,263.50 PHP 393,862.50
TOTAL 3 PHP 1,294,326.00 PHP 138,677.79 PHP 1,155,648.21
APPENDIX I – Machineries
OFFICE EQUIPMENT
PRICE PER
QUANTITY
40-inch Smart TV 2 PHP 9,999.00 PHP 1,071.32 PHP 19,998.00 PHP 2,142.64 PHP 17,855.36
Multi-function printer 3 PHP 5,100.00 PHP 546.43 PHP 15,300.00 PHP 1,639.29 PHP 13,660.71
Biometrics 1 PHP 1,580.00 PHP 169.29 PHP 1,580.00 PHP 169.29 PHP 1,410.71
Line Corded Telephone 5 PHP 3,300.00 PHP 353.57 PHP 16,500.00 PHP 1,767.86 PHP 14,732.14
HP Laptop 12 PHP 14,999.00 PHP 1,607.04 PHP 179,988.00 PHP 19,284.43 PHP 160,703.57
Split-type Inverter Aircon 4 PHP 23,800.00 PHP 2,550.00 PHP 95,200.00 PHP 10,200.00 PHP 85,000.00
Floor mounted aircon 1 PHP 65,299.00 PHP 6,996.32 PHP 65,299.00 PHP 6,996.32 PHP 58,302.68
Fire Extinguisher 1 PHP 1,499.75 PHP 160.69 PHP 1,499.75 PHP 160.69 PHP 1,339.06
Conference Table 1 PHP 14,950.00 PHP 1,601.79 PHP 14,950.00 PHP 1,601.79 PHP 13,348.21
Office Table 10 PHP 2,515.00 PHP 269.46 PHP 25,150.00 PHP 2,694.64 PHP 22,455.36
Office Chair 20 PHP 1,788.00 PHP 191.57 PHP 35,760.00 PHP 3,831.43 PHP 31,928.57
Filing Cabinet 5 PHP 5,999.00 PHP 642.75 PHP 29,995.00 PHP 3,213.75 PHP 26,781.25
TOTAL 65 PHP 501,219.75 PHP 53,702.12 PHP 447,517.63
APPENDIX II – Office Equipment

176
FACTORY EQUIPMENT
PRICE PER
QUANTITY
Steel Locker 1 PHP 9,999.00 PHP 1,071.32 PHP 9,999.00 PHP 1,071.32 PHP 8,927.68
Warehouse Cooling Fan 1 PHP 106,000.00 PHP 11,357.14 PHP 106,000.00 PHP 11,357.14 PHP 94,642.86
Trolley Push Cart 4 PHP 1,799.00 PHP 192.75 PHP 7,196.00 PHP 771.00 PHP 6,425.00
Gang Chair 1 PHP 6,199.00 PHP 664.18 PHP 6,199.00 PHP 664.18 PHP 5,534.82
Portable Pressure Washer 1 PHP 3,487.00 PHP 373.61 PHP 3,487.00 PHP 373.61 PHP 3,113.39
Blow Torch 2 PHP 650.00 PHP 69.64 PHP 1,300.00 PHP 139.29 PHP 1,160.71
Steel Container Drums 15 PHP 600.00 PHP 64.29 PHP 9,000.00 PHP 964.29 PHP 8,035.71
TOTAL 26 PHP 144,680.75 PHP 15,501.51 PHP 129,179.24
APPENDIX III – Factory Equipment
WAREHOUSE/STORAGE EQUIPMENT
PRICE PER
QUANTITY
Racks 2 PHP 5,500.00 PHP 589.29 PHP 11,000.00 PHP 1,178.57 PHP 9,821.43
Trolley Push Cart 1 PHP 1,799.00 PHP 192.75 PHP 1,799.00 PHP 192.75 PHP 1,606.25
Office Table 2 PHP 2,515.00 PHP 269.46 PHP 5,030.00 PHP 538.93 PHP 4,491.07
Office Chair 2 PHP 1,788.00 PHP 191.57 PHP 3,576.00 PHP 383.14 PHP 3,192.86
Filing Cabinet 1 PHP 3,150.00 PHP 337.50 PHP 3,150.00 PHP 337.50 PHP 2,812.50
Floor mounted aircon 1 PHP 65,299.00 PHP 6,996.32 PHP 65,299.00 PHP 6,996.32 PHP 58,302.68
TOTAL 10 PHP 91,353.75 PHP 9,787.90 PHP 81,565.85
APPENDIX IV – Warehouse/Storage Equipment
DELIVERY EQUIPMENT
PRICE PER
QUANTITY
Delivery Truck 1 PHP 1,250,000.00 PHP 133,928.57 PHP 1,250,000.00 PHP 133,928.57 PHP 1,116,071.43
TOTAL 1 PHP 1,250,000.00 PHP 133,928.57 PHP 1,116,071.43
APPENDIX V – Delivery Equipment

177
LABORATORY EQUIPMENT
PRICE PER
QUANTITY
Office Table 2 PHP 2,515.00 PHP 269.46 PHP 5,030.00 PHP 538.93 PHP 4,491.07
Office Chair 2 PHP 1,788.00 PHP 191.57 PHP 3,576.00 PHP 383.14 PHP 3,192.86
Laboratory Table 1 PHP 5,000.00 PHP 535.71 PHP 5,000.00 PHP 535.71 PHP 4,464.29
Measuring cylinder 1000ml 2 PHP 1,050.00 PHP 112.50 PHP 2,100.00 PHP 225.00 PHP 1,875.00
Beaker (glass) 250ml (2pcs) 5 PHP 100.00 PHP 10.71 PHP 500.00 PHP 53.57 PHP 446.43
Graduated pipette 5ml (2pcs) 2 PHP 100.00 PHP 10.71 PHP 200.00 PHP 21.43 PHP 178.57
Test tube rack (6 holes) 2 PHP 90.00 PHP 9.64 PHP 180.00 PHP 19.29 PHP 160.71
Test tube 10x75mm (100pcs) 1 PHP 100.00 PHP 10.71 PHP 100.00 PHP 10.71 PHP 89.29
Lab white coat (2pcs) 1 PHP 650.00 PHP 69.64 PHP 650.00 PHP 69.64 PHP 580.36
Bunsen burner (1pc) 2 PHP 250.00 PHP 26.79 PHP 500.00 PHP 53.57 PHP 446.43
Boiling Flask 500ml (1pc) 2 PHP 350.00 PHP 37.50 PHP 700.00 PHP 75.00 PHP 625.00
Petri Dish 90m Glass (20pcs) 1 PHP 120.00 PHP 12.86 PHP 120.00 PHP 12.86 PHP 107.14
Airconditioning Unit 1 PHP 9,999.00 PHP 1,071.32 PHP 9,999.00 PHP 1,071.32 PHP 8,927.68
TOTAL 25 PHP 30,154.75 PHP 3,230.87 PHP 26,923.88
APPENDIX VI – Laboratory Equipment
PANTRY EQUIPMENT
PRICE PER
ITEM QUANTITY
QUANTITY VAT PER UNIT TOTAL AMOUNT TOTAL VAT NET OF VAT
Tables and Chairs 15 PHP 1,079.80 PHP 115.69 PHP 16,197.00 PHP 1,735.39 PHP 14,461.61
Air Conditioner 1 PHP 9,999.00 PHP 1,071.32 PHP 9,999.00 PHP 1,071.32 PHP 8,927.68
TOTAL 16 PHP 26,196.00 PHP 2,806.71 PHP 23,389.29
APPENDIX VII – Pantry Equipment

178
OFFICE SUPPLIES
PRICE PER VAT PER
ITEMS QUANTITY UNIT PRICE TOTAL VAT NET OF VAT
QUANTITY QUANTITY
Calculator 10 PCS PHP 500.00 PHP 53.57 PHP 5,000.00 PHP 535.71 PHP 4,464.29
Puncher 10 PCS PHP 200.00 PHP 21.43 PHP 2,000.00 PHP 214.29 PHP 1,785.71
Binder Clip 25 BOX PHP 50.00 PHP 5.36 PHP 1,250.00 PHP 133.93 PHP 1,116.07
Glue 50 BOX PHP 120.00 PHP 12.86 PHP 6,000.00 PHP 642.86 PHP 5,357.14
Stappler 10 PCS PHP 100.00 PHP 10.71 PHP 1,000.00 PHP 107.14 PHP 892.86
Stapples 50 BOX PHP 40.00 PHP 4.29 PHP 2,000.00 PHP 214.29 PHP 1,785.71
Tape 100 PCS PHP 120.00 PHP 12.86 PHP 12,000.00 PHP 1,285.71 PHP 10,714.29
Tape Dispenser 3 PCS PHP 200.00 PHP 21.43 PHP 600.00 PHP 64.29 PHP 535.71
Ballpen 10 BOX PHP 250.00 PHP 26.79 PHP 2,500.00 PHP 267.86 PHP 2,232.14
Pencil 20 BOX PHP 200.00 PHP 21.43 PHP 4,000.00 PHP 428.57 PHP 3,571.43
Scissors 10 PCS PHP 50.00 PHP 5.36 PHP 500.00 PHP 53.57 PHP 446.43
Cutter Knife 4 PCS PHP 150.00 PHP 16.07 PHP 600.00 PHP 64.29 PHP 535.71
Marker 10 BOX PHP 250.00 PHP 26.79 PHP 2,500.00 PHP 267.86 PHP 2,232.14
Paper Clip 5 BOX PHP 250.00 PHP 26.79 PHP 1,250.00 PHP 133.93 PHP 1,116.07
Sharpener 10 PCS PHP 50.00 PHP 5.36 PHP 500.00 PHP 53.57 PHP 446.43
Fastener 5 BOX PHP 120.00 PHP 12.86 PHP 600.00 PHP 64.29 PHP 535.71
Bond Paper 10 REAM PHP 120.00 PHP 12.86 PHP 1,200.00 PHP 128.57 PHP 1,071.43
Folder 2 REAM PHP 300.00 PHP 32.14 PHP 600.00 PHP 64.29 PHP 535.71
TOTAL 344 PHP 44,100.00 PHP 4,725.00 PHP 39,375.00
APPENDIX VIII – Office Supplies
FACTORY SUPPLIES
PRICE PER VAT PER
ITEMS PRICE TOTAL VAT NET OF VAT
QUANTITY UNIT QUANTITY QUANTITY
Butane Gas Can 100 SET PHP 250.00 PHP 26.79 PHP 25,000.00 PHP 2,678.57 PHP 22,321.43
First aid kit 2 BOX PHP 1,500.00 PHP 160.71 PHP 3,000.00 PHP 321.43 PHP 2,678.57
Hair net 5 BOX PHP 300.00 PHP 32.14 PHP 1,500.00 PHP 160.71 PHP 1,339.29
Safety gloves-pair 40 PCS PHP 300.00 PHP 32.14 PHP 12,000.00 PHP 1,285.71 PHP 10,714.29
Safety goggles 10 PCS PHP 500.00 PHP 53.57 PHP 5,000.00 PHP 535.71 PHP 4,464.29
Garbage Can 10 PCS PHP 399.75 PHP 42.83 PHP 3,997.50 PHP 428.30 PHP 3,569.20
Garbage bag 100 BOX PHP 35.00 PHP 3.75 PHP 3,500.00 PHP 375.00 PHP 3,125.00
Broom and dustpan 6 PCS PHP 399.95 PHP 42.85 PHP 2,399.70 PHP 257.11 PHP 2,142.59
Tape 100 PCS PHP 150.00 PHP 16.07 PHP 15,000.00 PHP 1,607.14 PHP 13,392.86
Floor mop 3 PCS PHP 1,200.00 PHP 128.57 PHP 3,600.00 PHP 385.71 PHP 3,214.29
TOTAL 376 PHP 74,997.20 PHP 8,035.41 PHP 66,961.79
APPENDIX IX – Factory Supplies

179
APPENDIX X – Survey Questionnaire

180
APPENDIX XI – SSS and Pag – IBIG Contribution Table

181
APPENDIX XII – PhilHealth Contribution Table
APPENDIX XIII – TRAIN Income Tax Table

182
APPENDIX XIV – P. Orcasitas Résumé

183
APPENDIX XIV – P. Orcasitas Résumé

184
APPENDIX XV – J. Paus Résumé

185
APPENDIX XV – J. Paus Résumé

186
APPENDIX XVI – M. Pura Résumé

187
APPENDIX XVII – J. Solis Résumé

188
APPENDIX XVII – J. Solis Résumé

189
APPENDIX XVIII – Certificate of Incorporation

190
APPENDIX XIX – SEC Business Name Verification

191
APPENDIX XX – BIR Certificate of Registration

192
APPENDIX XXI – BIR Payment Form

193
APPENDIX XXI – BIR Payment Form

194
APPENDIX XXII – Barangay Clearance

195
APPENDIX XXIII – Sanitary Permit

196
APPENDIX XXIV – Mayor’s Permit

197
APPENDIX XXV – Fire Safety Inspection Certificate

198
APPENDIX XXVI – FDA Product Registration

199
APPENDIX XXVII - PhilHealth Certificate of Registration

200
APPENDIX XXVIII – PhilHealth Claim Signature Form

201
APPENDIX XXIX – PhilHealth Claim Form 1

202
APPENDIX XXX – SSS Certificate of Registration

203
APPENDIX XXXI – SSS Employer Registration Form

204
APPENDIX XXXII – SSS E-1 Form

205
APPENDIX XXXII – SSS E-1 Form

206
APPENDIX XXXIII – Pag-IBIG Member’s Data Form

207
APPENDIX XXXIII – Pag-IBIG Member’s Data Form

208
APPENDIX XXXIV – BIR Documentary Stamp Tax Declaration/Return Form

209
APPENDIX XXXIV – BIR Documentary Stamp Tax Declaration/Return Form

210
CONTRACT TO SELL
KNOW ALL MEN BY THESE PRESENTS:

This Contract to Sell is made and executed and entered by:
Bencheto P. Neri, of legal age, Filipino, married to Caroline A. Neri, Filipino, with
residence address at Trece-Indang Road Brgy. Luciano, Trece Martires, Cavite, hereinafter
referred to as the SELLER;
-AND-
John Albert Q. Paus, of legal age, Filipino, single, with residence and postal address
at Brgy. Tanzang Luma IV, Imus, Cavite, hereinafter referred to as the BUYER;
WITNESSETH;
WHEREAS, the SELLER is the registered owner of a parcel of land with improvements
located at Brgy. Conchu, Trece Martires, Cavite and covered by Transfer Certificate of
Title No. 000000 containing a total area of ONE THOUSAND (1000sqm) SQUARE METERS,
more or less, issued by the Registry of Deeds of Trece Martires;
WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the
above mentioned property under the terms and conditions herein below set forth;
NOW THEREFORE, for and in consideration of the total sum of TWO

MILLION (P2,000,000.00) Philippine Currency, and of the covenants herein after set forth
the SELLER agrees to sell and the BUYER agree to buy the aforesaid property subject to the
following terms and conditions:
1. The total consideration shall be TWO MILLION (P2,000,000.00) Philippine Currency,

payable through Cash.
1.1 In case the BUYERS could not fulfill any of their obligations stated in this Contract to Sell,
the earnest money shall be forfeited in favor of the SELLER.
2. All pending utility bills, if any, Real Estate Tax up to the time of sale, Capital Gains Tax,
Documentary Stamp Tax, shall be for the account of the SELLER.
3. Notarization fees, Registration Fee, Transfer Fees and all miscellaneous fees and expenses to
transfer the certificate of title in the name of the new owner shall be for the account of
the SELLER;
APPENDIX XXXV – Contract to Sell

211
4. Possession to the subject property shall be delivered by the SELLER to the BUYER upon full
payment of the total consideration;
5. Delivery of the property shall be given by the SELLER to the BUYER devoid of any religious
artifacts, personal belongings and effects, tenants and any toxic/radioactive substances. Etc.
6. Upon full payment of the total price, the SELLER shall sign and execute a DEED OF
ABSOLUTE SALE in favor of the BUYER. The SELLER shall likewise execute and/or deliver
any and all documents, including but not limited to the original copy of Transfer Certificate of
Title, Tax Declaration and all other documents necessary for the transfer of ownership
from SELLER to the BUYER.
7. In case the SELLER could not fulfill any of the obligations stated in this Contract to Sell, the
BUYER shall be entitled to a full refund plus 10% interest per month.
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this_____ day of
_______________________ 20________ at ___________________________________,
Philippines.
Bencheto P. Neri John Albert Q. Paus
Printed Name and Signature of SELLER Printed Name and Signature of BUYER
SIGNED IN THE PRESENCE OF:
___________________________________ ______________________________________
Printed Name and Signature of 1st Witness Printed Name and Signature of 2nd Witness

212
ACKNOWLEDGEMENT

PROVINCE OF )
BEFORE ME, personally appeared:
Name CTC Number Date/Place Issued
Bencheto P Neri 35307777 November 05, 2018 / Trece

Martires, Cavite
John Albert Q. Paus 01795929 November 05, 2018 / Trece
Martires, Cavite
Known to me and to me known to be the same persons who executed the foregoing
instrument and acknowledged to me that the same is their free and voluntary act and deed.
This instrument consisting of ____ page/s, including the page on which this
acknowledgement is written, has been signed on each page thereof by the concerned parties and
their witnesses, and and sealed with my notarial seal.
WITNESS MY HAND AND SEAL, on the date and place first above written.
NOTARY PUBLIC
_______________________, 19___________
Doc. No.______;
Page No. ______;
Book No.______;
Series of 20____.

213
APPENDIX XXXVI – Tax Declaration of Real Property

214
APPENDIX XXXVII – Approved Business Proposal

215
APPENDIX XXXVII – Approved Business Proposal

216

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LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITE

COLLEGE OF BUSINESS ADMINISTRATION

LEGAL AND TAXATION ASPECT

potential adverse effect, and the legal assessment of the company.

1.1 Legal Requirements

Doing business in the Philippines requires registration and coordination with

COLLEGE OF BUSINESS ADMINISTRATION

1.1.1 Securities and Exchange Commission (SEC) Registration

2. Reservation Payment Confirmation

5. Treasurer’s Affidavit (for stock corporations)

7. Endorsement/Clearance from other government agencies, if applicable.

To avail of the service, the following procedures are observed:

1. Verify and reserve the proposed Corporation name.

2. Present the Articles of Incorporation and By-Laws.

receipt issued for payment of filing fee.

COLLEGE OF BUSINESS ADMINISTRATION

Online Registration through the SEC Company Registration System

processing of corporations and partnerships, licensing of foreign corporations,

amendments of the articles of incorporation and other corporate applications requiring

through the following simple steps:

1. Visit SEC website.

2. Create an account at SEC-CRS.

3. Choose the Company Type and Company Classification.

5. Verify proposed company name.

6. Select SEC Office where the application will be processed.

7. Add the company’s Economic Zone and Principal Office Address.

8. Add the additional company details required.

Registration with Municipality Where the Business is Located

where the business is located:

COLLEGE OF BUSINESS ADMINISTRATION

1.1.2 Business Permit

Application for Trece Martires’ Business Permit:

2. DENR Environmental Clearance or Certificate of Non-coverage (If Applicable)

3. Sanitary Permit (If Applicable)

4. Fire Safety Inspection Certificate

5. Other applicable requirements of National and Local Government Agencies

1. Present proof of business registration, incorporation, or legal personality. (i.e.

DTI/SEC/Cooperative Development Authority (CDA) registration);

3. Provide Occupancy Permit, if required by national laws. (e.g. Building Code)

and local laws;

4. Provide Contract of Lease (if Lessee); and

5. Barangay Business Clearance

COLLEGE OF BUSINESS ADMINISTRATION

proceed to Step 2, Assessment of Taxes, Fees, and Charges.

proceed to the final step.

fees and charges.

1.1.3 Sanitary Permit

The following are steps in securing a sanitary permit:

1. Have a discussion with the Sanitation inspector.

2. Proceed to city health officer.

the medical certificate.

1.1.4 BIR Registration

COLLEGE OF BUSINESS ADMINISTRATION

1. BIR Form No. 1903

2. Photocopy of SEC Certificate of Incorporation

4. Photocopy of Mayor’s business permit; or Duly received application for Mayor’s

business permit, if the former is still in process with the LGU

5. New sets of permanently bound books of accounts

6. Proof of payment of Annual Registration Fee (ARF) (not applicable to those

exempts from the imposition of ARF

7. BIR Form No. 1906

8. Final and clear sample of principal receipts/invoices

Steps in BIR registration: