SPSPS Solar Corporation

Solar Philippines Calatagan Corporation
(A Wholly Owned Subsidiary of Solar Philippines

Power Project Holdings, Inc.)
Financial Statements
December 31, 2016
(With Comparative Figures for Formatted: Font: Not Italic
December 31, 2015)
and
Independent Auditor’s Report

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COVER SHEET Formatted ...
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AUDITED FINANCIAL STATEMENTS Formatted ...
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SEC Registration Number
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R P O R A T I O N ( Aa Wh o l l y Oo w n e d sS u b s Formatted ...
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i d i a r y o f S o l a r P h i l i p p i n e s P o Formatted ...
w e r P r o j e c t H o l d i n g s , I n c . ) Formatted ...
PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province ) Formatted ...
S U I T E 2 A , L P L T O WE R S , 1 1 2 L E G A Formatted ...
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Form Type Department requiring the report Secondary License Type, If Applicable
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A F S C R M D N / A
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COMPANY INFORMATION Formatted ...
Company’s Email Address Company’s Telephone Number Mobile Number
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N/A 817-2585 N/A
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No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day)
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6 First Monday of May 12/31
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CONTACT PERSON INFORMATION Formatted ...
The designated contact person MUST be an Officer of the Corporation
Name of Contact Person Email Address Telephone Number/s Mobile Number Formatted ...
Hazel Iris P. Lafuente hazel@solarphilippines.ph 817-285825 09178816684 Formatted ...
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CONTACT PERSON’s ADDRESS
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Suite 2A, LPL Towers, 112 Legaspi St., Legaspi Village, Makati City
NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Formatted ...
Commission within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person
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designated.
2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with Formatted ...
the Commission and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from
liability for its deficiencies. Formatted ...
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*SGVFS024659* Formatted ...
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SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 December 14, 2015, valid until December 31, 2018
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-4 (Group A),
Philippines November 10, 2015, valid until November 9, 2018
A member firm of Ernst & Young Global Limited

INDEPENDENT AUDITOR’S REPORT Relative to: Column, Vertical: In line, Relative to: Margin,
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The Board of Directors and Stockholders Formatted: Indent: Left: 0", First line: 0"
Suite 2A, LPL Towers
112 Legaspi St., Legaspi Village
Makati City
Report on the Audit of the Financial Statements Formatted: Indent: Left: 0", First line: 0"
Opinion
We have audited the financial statements of Solar Philippines Calatagan Corporation (the Company, a
wholly owned subsidiary of Solar Philippines Power Project Holdings, Inc..; the Company), which
comprise the statement of financial position as at December 31, 2016 and statement of comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 2016, and its financial performance and its cash flows for
the year then ended, in accordance with Philippine Financial Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audit in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics) together with the
ethical requirements that are relevant to our audit of the financial statements in the Philippines, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Other Matter Formatted: Don't keep with next
The financial statements of Solar Philippines Calatagan Corporation as at December 31, 2015 and for the
period from June 9, 2015 to December 31, 2015, which are presented for comparative purposes, were
audited by other auditors whose report thereon dated May 31, 2016, expressed an unqualified opinion.
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Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with PFRSs, and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.

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error.
enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude Formatted: Right, Tab stops: Not at 3" + 6"
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that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the Formatted: Normal, No bullets or numbering
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

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 Evaluate the overall presentation, structure and content of the financial statements, including the Formatted: Normal, No bullets or numbering
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
Report on the Supplementary Information Required Under Revenue Regulations 15-2010
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as
a whole. The supplementary information required under Revenue Regulations 15-2010 in Note 197 to the
financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a
required part of the basic financial statements. Such information is the responsibility of the management
of Solar Philippines Calatagan Corporation. The information has been subjected to the auditing
procedures applied in our audit of the basic financial statements. In our opinion, the information is fairly
stated, in all material respects, in relation to the basic financial statements taken as a whole.
SYCIP GORRES VELAYO & CO.
Jhoanna Feliza C. Go
Partner
CPA Certificate No. 0114122
SEC Accreditation No. 1414-A (Group A),
March 2, 2017, valid until March 1, 2020April 8, 2014, valid until April 30, 2017
Tax Identification No. 219-674-288
BIR Accreditation No. 08-001998-103-2017,
January 31, 2017, valid until January 30, 2020
PTR No. 5908703, January 3, 2017, Makati City
April 10, 2017

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INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Stockholders

Report on the Audit of the Financial Statements
Opinion
wholly owned subsidiary of Solar Philippines Power Project Holdings, Inc.; the Company), which
comprise the statement of financial position as at December 31, 2016 and statement of comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies.
Basis for Opinion
Other Matter
accordance with PFRSs, and for such internal control as management determines is necessary to enable
error.

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continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude
Evaluate the overall presentation, structure and content of the financial statements, including the

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Partner
April 10, 2017
INDEPENDENT AUDITOR’S REPORT

Report on the Audit of the Financial Statements
Opinion
wholly owned subsidiary of Solar Philippines Power Project Holdings, Inc.), which comprise the
statement of financial position as at December 31, 2016 and statement of comprehensive income, Formatted: Right, Tab stops: Not at 3" + 6"
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statement of changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies.
Basis for Opinion
Other Matter
accordance with PFRSs, and for such internal control as management determines is necessary to
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enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
audit conducted in accordance with PSAs will always detect a material misstatement when it exists. Formatted: Right, Tab stops: Not at 3" + 6"
Misstatements can arise from fraud or error and are considered material if, individually or in the Formatted: Font: (Default) Times New Roman, 11 pt
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 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude

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 Evaluate the overall presentation, structure and content of the financial statements, including the
Partner
April 8, 2014, valid until April 30, 2017
April 10, 2017

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The Board of Directors and Stockholders Adjust space between Asian text and numbers
Solar Philippines Calatagan Corporation Formatted: Indent: Left: 0", First line: 0"
Makati City
We have audited the accompanying financial statements of Solar Philippines Calatagan Corporation
(a wholly owned subsidiary of Solar Philippines Power Project Holdings, Inc.; the Company), as at and
for the year ended December 31, 2016, on which we have rendered the attached report dated
April 10, 2017.
In compliance with Securities Regulation Code Rule 68, As Amended (2011), we are stating that the
above Company has one (1) stockholder owning more than one hundred (100) shares.
Partner
April 10, 2017

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Makati City
We have audited in accordance with Philippine Standards on Auditing, the financial statements of
Solar Philippines Calatagan Corporation as at and for the year ended December 31, 2016 and have issued
our report thereon dated April 10, 2017. Our audit was made for the purpose of forming an opinion on
the basic financial statements taken as a whole. The accompanying sSchedule of Reconciliation of all
Effective StandardsRetained Earnings Available for Dividend Declaration as at December 31, 2016 is the
responsibility of the Company’s management. This schedule is presented for the purpose of complying
with Securities Regulation Code Rule 68, As Amended (2011), and is not part of the basic financial
statements. This schedule has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, fairly states, in all material respects, the information required to
be set forth therein in relation to the basic financial statements taken as a whole.
Partner
April 10, 2017

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The Board of Directors and Stockholders Formatted: Font: 13 pt, Bold, Font color: Text 1
Solar Philippines Calatagan Corporation Formatted: Tab stops: Not at 0.31"
Suite 2A, LPL Towers Formatted: Indent: Left: 0", First line: 0"

Makati City
We have audited in accordance with Philippine Standards on Auditing, the Formatted: Tab stops: Not at 0.3" + 3.6"
financial statements of
Solar Philippines Calatagan Corporation as at and for the year ended December
31, 2016 and have issued our report thereon dated April 10, 2017. Our audit was
made for the purpose of forming an opinion on the basic financial statements
taken as a whole. The accompanying Schedule of all Effective Standards as at
December 31, 2016 is the responsibility of the Company’s management. This
schedule is presented for the purpose of complying with Securities Regulation
Code Rule 68, As Amended (2011), and is not part of the basic financial
statements. This schedule has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, fairly states, in
all material respects, the information required to be set forth therein in relation
to the basic financial statements taken as a whole.
Partner
March 2, 2017, valid until March 1, 2020
April 10, 2017

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SOLAR PHILIPPINES CALATAGANSPSPS SOLAR CORPORATION
(A Wholly Owned Subsidiary of Solar PhilippinesSPSPS Power Project Holdings,
Inc.)
STATEMENT OF FINANCIAL POSITION
December 31, 2016
(With Comparative Figures for December 31, 2015)
December 31
2016 2015
ASSETS
Current Assets
Cash P
=1,320,131 =65,000
P
393,456,322911,1
Trade and other receivables (Note 4) 70,111 −
Due from related parties (Note 8) 533,068,668 −
Input value-added taxes 196,696 −
928,041,817912,6
Total Current Assets 86,938 65,000
Noncurrent Assets
Property, plant and equipment (Note 5) 3,327,149,937 −
Deposits for land acquisition (Note 6) 13,539,119 −
Investment property (Note 5) − 5,000,000
Total Noncurrent Assets 3,340,689,056 5,000,000
P
=
4,268,730,8734,25
TOTAL ASSETS 3,375,994 =5,065,000
P
LIABILITIES AND EQUITY (CAPITAL DEFICIENCY)
Current Liabilities
Accounts payable and accrued expenses (Note 7) P
=3,414,874,12019 =19,320
P
22,692,7477,337,8
Due to related parties (Note 8) 69 5,444,652
Notes payable (Note 9) 399,728,645 −
3,837,295,5123,82
Total Current Liabilities 1,940,633 5,463,972
Equity (Capital Deficiency)

Common stock - P =1 par value
Authorized - 1,000,000 shares
Issued and outstanding - 250,000 sharesSubscribed- 250,000
shares 250,000 25062,5000
Subscription receivable − (187,500) Formatted: Indent: First line: 0"
Retained earnings (dDeficit) 431,185,361 (461,472) Formatted: Font: Bold
Total Equity (Capital Deficiency) 431,435,361 (398,972)
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P
=
TOTAL LIABILITIES AND EQUITY 4,268,730,8734,25 Formatted: Space Before: 12 pt
(CAPITAL DEFICIENCY) 3,375,994 =5,065,000
P
See accompanying Notes to Financial Statements.

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SPSPS SOLAR CORPORATION
(A Wholly Owned Subsidiary of SPSPS Power Project Holdings, Inc.)SOLAR
PHILIPPINES CALATAGAN CORPORATION
(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings, Inc.)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2016
(With Comparative Figures for the period from June 9, 2015 to December 31, 2015)*
2016 2015
(OneYear) (SevenMonths)
SALE OF ELECTRICITY (Notes 1 and 16) P

=575,034,036 =−
P
COSTS OF SALE OF ELECTRICITY (Note 10) 117,960,834 −
GROSS PROFIT 457,073,202 −
FINANCE COSTSINTEREST EXPENSE (Note 9) (20,156,142) −
GENERAL AND ADMINISTRATIVE EXPENSES (Note 11) (6,951,718) (461,472)
INTEREST INCOME (Note 4) 1,681,491 −
NET INCOME (LOSS) 431,646,833 (461,472)
OTHER COMPREHENSIVE LOSS (INCOME) − −
TOTAL COMPREHENSIVE LOSS P

=431,646,833 (P
=461,472)
* The Company was registered with the Securities and Exchange Commission on June 9, 2015.

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(A Wholly Owned Subsidiary of SPSPS Power Project Holdings, Inc.)SOLAR Formatted: Line spacing: At least 12 pt, Border: Bottom:
(No border)
PHILIPPINES CALATAGAN CORPORATION
(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings, Inc.) Formatted: Font: 11 pt
STATEMENT OF CHANGES IN EQUITY

Retained
Common Subscription Earnings Formatted: Right
Stock Receivable (Deficit) Total Formatted Table
Issuance of common stock =250,000

P (P
=187,500) =–
P =62,500
P Formatted: Right
Total comprehensive loss – – (461,472) (461,472) Formatted: Right
Balances at December 31, 2015 250,000 (187,500) (461,472) (398,972) Formatted: Right
Collection of subscription receivable – 187,500 – 187,500 Formatted: Right, Right: 0.1"

Formatted: Right, Right: 0.06"
Total comprehensive income – –431,646,833 431,646,833
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Right: 0.08", Space Before: 12 pt, Don't add space between
Balances at December 31, 2016 =250,000
P =–431,185,361 P
=P
P =431,435,361 paragraphs of the same style
Formatted: Right
* The Company was registered with the Securities and Exchange Commission on June 9, 2015. Formatted: Font: Not Bold
Formatted: Right
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Formatted: Right
December 31 Formatted: Right, Right: 0.06"
2016 2015 Formatted: Right
COMMON STOCK
Balances at beginning of period P
=62,500 =62,500
P
Collection of subscription receivable 187,500 −
Balances at end of period 250,000 62,500
RETAINED EARNINGS (DEFICIT)

Balances at beginning of period (461,472) −
Total comprehensive income (loss) 431,646,833 (461,472)
Balances at end of period 431,185,361 (461,472)
Formatted Table
TOTAL EQUITY (CAPITAL DEFICIENCY) P
=431,435,361 (P
=398,972)
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(A Wholly Owned Subsidiary of SPSPS Power Project Holdings, Inc.)
SOLAR PHILIPPINES CALATAGAN CORPORATION
(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings, Inc.)
STATEMENT OF CASH FLOWS
2016 2015
(OneYear) (SevenMonths)
CASH FLOWS FROM OPERATING ACTIVITIES

Net Iincome (loss) before income tax P
=431,646,833 (P
=461,472)
Adjustments for:
Finance costsInterest expense (Note 9) 20,156,142 −
Depreciation (Note 5) 113,526,204 −
Interest income (Note 4) (1,681,491) −
Income (loss) before changes in working capital 563,647,688 (461,472)
Increase in:
(393,456,322)(911
Trade and other receivables (Note 4)
,170,111) −
Due from related parties (Note 8) (533,068,668) −
Input value-added taxes (196,696) −
Increase in accounts payable and accrued expenses
7,038,4913,407,03
(Notes 7 and 14) 19,320
8,490
(356,035,507)3,05
Net cash from (used in) operations (442,152)
9,319,371
Interest received (Note 4) 1,681,491 −
(354,354,016)3,06
Net cash flows from (used in) operating activities (442,152)
1,000,862
CASH FLOWS USED IN INVESTING ACTIVITIES

(35,676,141)(3,43
Acquisition of property, plant and equipment (Notes 5 and 14)
5,676,141) −
Deposits for land acquisition (Note 6) (13,539,119) −
Additions to investment property (Note 5) − (5,000,000)
(49,215,260)(3,44
Net cash used in investing activities
9,215,260) (5,000,000)
CASH FLOWS FROM (USED IN) FINANCING

ACTIVITIES
Net proceeds from notes payable 398,005,479 −
Interest paid (Note 9) (10,616,667) −
17,248,0951,893,2
Increase in amounts of due to related parties (Note 8) 5,444,652
17
Proceeds from issuance of commonapital stock 187,500 62,500
Interest paid (Note 9) (10,616,667) −
404,824,407389,4
Net cash flows from (used in) financing activities 69,529 5,507,152
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NET INCREASE IN CASH 1,255,131 65,000
CASH AT BEGINNING OF YEAR 65,000 −
CASH AT END OF YEAR P

=1,320,131 =65,000
P
* The Company was registered with the Securities and Exchange Commission on June 9, 2015.

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SPSPS SOLAR CORPORATION Formatted: Right: 0.8"
(A Wholly Owned Subsidiary of SPSPS Power Project Holdings, Inc.)

(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings, Inc.) Formatted: Font: 11 pt
NOTES TO FINANCIAL STATEMENTS
1. Corporate Information
(a) Organization
Solar Philippines CalataganSPSPS Solar Corporation (the Company) was incorporated and
registered with the Philippine Securities and Exchange Commission (SEC) on June 9, 2015,
primarily to construct, erect, assemble, commission, operate and maintain power-generating
plants and related facilities for the conversion of renewable energy into usable form fit for
electricity generation and distribution; to engage in general construction planning, technical
design, procuring, and consultancy services; and to perform other ancillary and incidental
activities as may be provided by and under contract with Government of the Republic of the
Philippines, or any subdivision, instrumentality or agency thereof, or any government-owned
and controlled corporation, or other entity engaged in the development, supply and
distribution of renewable energy; and to enter into contracts and arrangement of every kind
and description, either alone or jointly with any other corporations or persons, for the purpose
of carrying out all business under which this corporation is organized.
The Company is a wholly owned subsidiary of Solar PhilippinesSPSPS Power Project

Holdings, Inc. (SPPPHI or Parent Company), a corporation organized in the Republic of the
Philippines.
(b) The Project
The Calatagan SPSPS Solar Power Project is a 63.370 megawatt (MW) solar photovoltaic
(PV) facility situated in the Municipality of Calatagan, Province of BatangasPalo, Leyte
occupying a total production area of 14365 hectares with over 200,000 solar panels and 828
inverters (see Note 154). The construction of the Project commenced on SepteNovember 12,
2015 and started commercial operations on
March 11, 2016.
On August 26, 2015, the Company was registered with the Board of Investments (BOI).
These certifications served as the basis of entitlement to incentives under Republic Act No.
. 9513, otherwise known as the Renewable Energy Act of 2008, which includes an income tax
holiday (ITH) for a period of seven (7) years from the start of its commercial operation, duty
free importation of machineries for ten (10) years, and zero (0) percent value- added tax
among others. As ofOn December 3113, 2016, the Company is still in the process of
increasing its stockholder’s equity as required by thealready complied with the majority of the
requirements stated in the terms and conditions of the BOI registrationregistration terms and
conditions (see Note 125).
On March 14, 2016, the Department of Energy (DOE) issued COE-FIT No. S-2016-03-05,
=₱8.69 per kWh for 20 years (see Note 165).
which entitles the Company to a base FIT rate of P
The registered address and principal place of business of the Company is Suite 2A, LPL Towers,
112 Legaspi St., Legaspi Village, Makati Cityxxxxx.
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The financial statements of the Company as of and for the year ended December 31, 2016 with
comparative figures as of December 31, 2015 and for the period from June 9, 2015 to December
December 31, 2015 were approved and authorized for issue by the Board of Directors (BOD) on
April 10, 2017.
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2. Summary of Significant Accounting Policies
Basis of Preparation
The financial statements of the Company have been prepared using the historical cost basis and
=), the Company’s functional currency.
are presented in Philippine Peso (P
Statement of Compliance
The financial statements of the Company have been prepared in compliance with Philippine
Financial Reporting Standards (PFRSs).
Changes in Accounting Policies

The Company applied for the first time certain amendments, which are effective for annual
periods beginning on or after January 1, 2016. The adoption of these amendments did not have
any significant impact on the financial statements.
 Amendments to PFRS 10, Consolidated Financial Statements, PFRS 12, Disclosure of

Interests in Other Entities, and Philippine Accounting Standards (PAS) 28, Investments
in Associates and Joint Ventures, Investment Entities: Applying the Consolidation
Exception
 Amendments to PFRS 11, Joint Arrangements - Accounting for Acquisitions of Interests in
Joint Operations
 PFRS 14, Regulatory Deferral Accounts
 Amendments to PAS 1, Presentation of Financial Statements - Disclosure Initiative
 Amendments to PAS 16, Property, Plant and Equipment and PAS 38, Intangible Assets -
Clarification of Acceptable Methods of Depreciation and Amortization
 Amendments to PAS 16 and PAS 41, Agriculture - Bearer Plants
 Amendments to PAS 27, Separate Financial Statements, Equity Method in Separate
 Annual Improvements to PFRSs (2012 - 2014 Cycle)
 Amendment to PFRS 5, Non-current Assets Held for Sale and Discontinued Operations -
Changes in Methods of Disposal
 Amendment to PFRS 7, Financial Instruments: Disclosures - Servicing Contracts
 Amendment to PFRS 7, Applicability of the Amendments to PFRS 7 to Condensed Interim
 Amendment to PAS 19, Employee Benefits - Discount Rate: Regional Market Issue
 Amendment to PAS 34, Interim Financial Reporting - Disclosure of Information
‘Elsewhere in the Interim Financial Report’
Financial Instruments - Initial Recognition and Subsequent Measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial Assets
Initial Recognition and Measurement
Financial instruments are classified at initial recognition, as financial instruments at fair value
through profit or loss (FVPL), loans and receivables, held to maturity (HTM) investments or
available-for-sale (AFS) financial assets. All financial assets are recognized initially at fair value
plus transaction cost that are attributable to the acquisition of the financial asset.
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Purchase or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognized on a trade date
or the date that the Company commits to purchase or sell the asset.
Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. After initial measurement, such financial assets are
subsequently measured at amortized cost using the effective interest rate (EIR) method, less
impairment. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The amortization, if any, is
included in “Interest income” account in profit or loss. The losses arising from impairment of
loans and receivables are recognized in profit or loss.
This accounting policy applies primarily to the statements of financial position captions “Cash”
and “Trade and other receivables” and “Due from related parties” which arise primarily from sale
of electricity.
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are classified, at initial recognition as financial liabilities at fair value through
profit or loss, loans and borrowings and payables as appropriate.
All financial liabilities are recognized initially at fair value and, in case of loans and borrowings
and payables, net of directly attributable transaction costs.
The Company’s financial liabilities includes “Accounts payable and accrued expenses”, “Due to
related parties”, “Notes payable” and other obligations that meet the above definition (other than
liabilities covered by other accounting standards, such as income tax payable).
Loans and Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortized costs using effective-interest method. Gains and losses are recognized in profit or loss
when liabilities are derecognized as well as through the effective-interest rate amortization
process.
Amortized costs are calculated by taking into account any discount or premium on acquisition and
fess or costs that are integral part of the EIR. The EIR amortization is included as interest expense
in profit or loss.
Fair Value Measurement

Fair value is the estimated price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
 In the principal market for the asset or liability, or

 In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to the Company.
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The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a nonfinancial asset takes into account a market participant's ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the Company’s financial
statements are categorized within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
 Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
 Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable; and
 Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between Levels in the hierarchy by re-
assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained above.
Impairment of Financial Assets Carried at Amortized Cost

The Company assesses at each reporting date whether there is objective evidence that a financial
asset or group of financial assets is impaired. An impairment exists if one or more events that has
occurred since the initial recognition of the asset (an incurred ‘loss event’), has impact on the
estimated future cash flows of the financial asset or the group of financial assets that can be
reliably estimated. Evidence of impairment may include indications that the debtor or group of
debtors is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial
reorganization and where observable data indicate that there is measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with
defaults.
The Company first assesses whether objective evidences of impairment exists individually for
financial assets that are individually significant, or collectively for financial assets that are not
individually significant. If the Company determines that no objective evidence of impairment
exists of an individually assessed financial asset, whether significant or not, it includes the asset in
a group of financial assets with similar credit risk characteristics and collectively assess them for
impairment. Assets that are individually assessed for impairment and for which an impairment
loss is, or continues to be, recognized are not included in a collective assessment of impairment.
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The amount of any impairment loss identified is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flow, excluding future expected
credit losses that have not yet been incurred. The present value of the estimated future cash flows
is discounted at the financial asset’s original effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account and the loss
is recognized in the profit or loss. Interest income continues to be accrued on the reduced carrying
amount and is accrued using the rate of interest used to discount the future cash flows for the
purpose of measuring the impairment loss. Loans together with the associated allowance are
written off when there is no realistic prospect of future recovery and all collaterals has been
realized or has been transferred to the Company. If, in a subsequent year, the amount of the
estimated impairment loss increases or decreases because of an event occurring after the
impairment was recognized, the previously recognized impairment loss is increased or reduced by
adjusting the allowance account. If a write-off is later recovered, the recovery is recognized in the
profit or loss.
Derecognition of Financial Instruments

Financial Assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when:
1. the rights to receive cash flows from the asset have expired;
2. the Company retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a “pass-through”
arrangement; or
3. The Company has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained the risk and rewards of the asset but has transferred the control of the asset.
Where the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all the risks and
rewards of the asset, nor transferred control of the asset, the Company continuous to recognize the
transferred asset to the extent of the Company’s continuing involvement. In that case, the
Company also recognizes an associated liability. The transferred asset and associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured
at the lower of the original carrying amount of the asset and the maximum amount of
consideration that the Company could be required to repay.
Financial Liabilities
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or has expired. Where an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the
original liability and the recognition of a new liability. The difference in the respective
carrying amounts of a financial liability is recognized in profit or loss.
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Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement
of financial position if there is a currently enforceable legal right to set off the recognized amounts
and there is intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously. The Company assesses that it has a currently enforceable right of offset if the
right is not contingent on a future event, and is legally enforceable in the normal course of
business, event of default, and event of insolvency or bankruptcy of the Company and all of the
counterparties.
Cash
Cash in the statement of financial position comprise cash on hand and in bank, which are subject
to an insignificant risk of changes in value.
Input Value-added Tax (VAT)

Input VAT represents the VAT due or paid on purchases of goods and services that the Company
can claim against any future liability to the Bureau of Internal Revenue (BIR) for output VAT
from sale of goods and services. Input VAT is stated at net realizable value. An allowance is
provided for any portion of the input VAT that cannot be claimed against output VAT or
recovered as tax credit against future income tax liability.
Property, Plant and Equipment

Property, plant and equipment, except for land, are carried at cost net accumulated depreciation
and accumulated impairment losses, if any. Land is carried at cost less any impairment in value.
Land is carried at cost less any impairment in value. The initial cost of property, plant and
equipment consists of its purchase price, including import duties, nonrefundable taxes and any
directly attributable costs of bringing the property, plant and equipment to its working condition
and location for its intended use. Such cost includes the cost of replacing part of such property
and equipment when that cost is incurred if the recognition criteria are met.
Expenditures incurred after the property, plant and equipment have been put into operations, such
as repairs and maintenance, are normally charged to expense in the period in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property, plant and equipment beyond its originally assessed standard of performance, the
expenditures are capitalized as additional costs of property and equipment. The present value of
the expected cost for decommissioning of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met. Depreciation is computed using
the straight-line method over the estimated useful lives of the assets.
The estimated useful life of the solar power plant is 25 years.
The depreciation method and estimated useful lives are reviewed periodically. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied
in the items of property, plant and equipment are accounted for by changing the depreciation
method and useful lives, as appropriate, and treated as a change in accounting estimates. The
depreciation expense on the items of property, plant and equipment is recognized in profit or loss.
When property, plant and equipment are retired or otherwise disposed of, their cost, accumulated
depreciation and any allowance for impairment in value are eliminated from the accounts and any
gain or loss resulting from their disposal is included in the statement of comprehensive income. Formatted: Right, Tab stops: Not at 3" + 6"
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Fully depreciated property, plant and equipment are retained in the accounts until these are no
longer in use.
Deposits for Land Acquisition

Deposits for land acquisition pertain to deposits and payments made in relation to the acquisition
of parcels of land and are stated at cost less any impairment in value.
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Impairment of Nonfinancial Assets

The Company assesses at each reporting date whether there is an indication that these nonfinancial
assets may be impaired. If any such indication exists, or when annual impairment testing for an
asset is required, the Company estimates these nonfinancial assets’ recoverable amount. An
asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value
less costs to sell and its value in use and is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent of those from other assets or groups of
assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. In assessing value in use, the
estimated future cash flows are discounted to their present value using a discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses from continuing operations are recognized in profit or loss.
An assessment is made at each reporting date to determine whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the Company makes an estimate of recoverable amount. Any previously
recognized impairment loss is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognized. If that is
the case, the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of depreciation
and amortization, had no impairment loss been recognized for the asset in prior years. Such
reversal is recognized in the statement of comprehensive income.
Current versus Non-current Classification

The Company presents assets and liabilities in the statement of the financial position based on the
current/ non-current classification. An asset as current when it is:
 Expected to realized or intended to be sold or consumed in normal operating cycle;

 Held primarily for the purpose of trading;
 Expected to be realized within twelve months after the reporting period; or
 Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
 It is expected to be settled in normal operating cycle;

 It is held primarily for the purpose of trading;
 It is due to be settled within twelve months after the reporting period; or
 There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.
The Company classifies all other liabilities as non-current. Deferred income tax assets are
classified as non- current assets and liabilities.
Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will
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be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Where the Company expects some or all of a provision to be reimbursed, the
reimbursement is recognized as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in profit or loss, net of any
reimbursement.
If the effect of the time value of money is material, provisions are made by discounting the
expected future cash flows at a pre-tax rate that reflects the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as an
interest expense.
Income Taxes
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date in the countries where the
Company operates and generates taxable income
Current income tax relating to items recognized directly in equity is recognized in equity and not
in the statement of income.
Deferred Income Tax

Deferred income tax is provided using the liability method on temporary differences between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
 When the deferred income tax liability arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss
 In respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, when the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse
in the foreseeable future
Deferred income tax assets are recognized for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses. Deferred income tax assets are
recognized to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and the carry forward of unused tax credits and unused tax losses
can be utilized, except:
When the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss;

 In respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred income tax assets are recognized only to the
extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit will be available against which the temporary differences can be utilized.
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The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets
are re-assessed at each reporting date and are recognized to the extent that it has become probable
that future taxable profits will allow the deferred income tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply
the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.
Deferred income tax relating to items recognized outside profit or loss is recognized outside profit
or loss. Deferred income tax items are recognized in correlation to the underlying transaction
either in OCI or directly in equity.
Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable
right exists set off current tax assets against current tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation authority.
Common Stock
Common stock is measured at par value and is classified as equity for all shares issued. When the
Company issues more than one class of stock, a separate account is maintained for each class of
stock and the number of shares issued.
Retained Earnings (Deficit)

Retained earnings (deficit) includes accumulated earnings (losses) of the Company reduced by
dividends on capital stock. Dividends on capital stock are recognized as a liability and deducted
from equity when they are approved by the BOD. Dividends for the year that are approved after
the financial reporting date are dealt with as an event after the financial reporting date. Retained
earnings (deficit) may also include effect of changes in accounting policy as may be required by
the standard’s transitional provisions.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits associated with
the transactions will flow to the Company and the revenue can be reliably measured.
The following specific recognition criteria must also be met before revenue is recognized:
Sale of Electricity
Sale of electricity is consummated whenever the electricity generated by the Company is
transmitted through the transmission line designated by the buyer, for a consideration. Revenue
from sale of electricity is based on sales price and recognized monthly based on the actual energy
delivered.
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Interest Income
Revenue is recognized as interest accrues, using the effective interest rate, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial
instrument to the net carrying amount of the financial asset.
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Costs and Expenses

Expenses are decreases in economic benefits during the accounting period in the form of outflows
or depletions of assets or incurrence of liabilities that result in decreases in equity, other than those
relating to distributions to equity participants. Costs and expenses are generally recognized when
the services are used or the expenses arise.
Costs of Sale of Electricity

These include expenses incurred by those directly responsible for the generation of revenues from
solar energy (i.e., plant operations, plant maintenance and power plant preventive maintenance
schedule), at operating project location. Costs of sales of electricity are expensed when incurred.
General and Administrative Expenses

General and administrative expenses are incurred in the direction and general administration of
day-to-day operations of the Company. General and administrative expenses are generally
recognized when the services are used or the expenses arise.
Contingencies
Contingent liabilities are not recognized in the financial statements but are disclosed in the notes
unless the possibility of an outflow of resources embodying economic benefits is remote.
Contingent assets are not recognized in the financial statements but are disclosed in the notes
when an inflow of economic benefits is probable.
Events after the Financial Reporting Date

Post year-end events that provide additional information about the Company’s financial position at
the end of reporting date (adjusting event) are reflected in the financial statements. Post year-end
events that are not adjusting events are disclosed in the notes to financial statements when
material.
Future Changes in Accounting Policies

Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the
Company does not expect that the future adoption of the said pronouncements to have a significant
impact on its financial statements. The Company intends to adopt the following pronouncements
when they become effective.
Effective beginning on or after January 1, 2017
 Amendment to PFRS 12, Clarification of the Scope of the Standard (Part of Annual
Improvements to PFRSs 2014 - 2016 Cycle)
The amendments clarify that the disclosure requirements in PFRS 12, other than those relating
to summarized financial information, apply to an entity’s interest in a subsidiary, a joint
venture or an associate (or a portion of its interest in a joint venture or an associate) that is
classified (or included in a disposal group that is classified) as held for sale.
These amendments are not expected to have any impact on the Company’s financial
statements.
 Amendments to PAS 7, Statement of Cash Flows, Disclosure Initiative

The amendments to PAS 7 require an entity to provide disclosures that enable users of
financial statements to evaluate changes in liabilities arising from financing activities,
including both changes arising from cash flows and non-cash changes (such as foreign
exchange gains or losses). On initial application of the amendments, entities are not required
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to provide comparative information for preceding periods. Early application of the

amendments is permitted.
Application of amendments will result in additional disclosures in the 2017 financial

statements of the Company.
 Amendments to PAS 12, Income Taxes, Recognition of Deferred Tax Assets for Unrealized
Losses
The amendments clarify that an entity needs to consider whether tax law restricts the sources
of taxable profits against which it may make deductions on the reversal of that deductible
temporary difference. Furthermore, the amendments provide guidance on how an entity
should determine future taxable profits and explain the circumstances in which taxable profit
may include the recovery of some assets for more than their carrying amount.
Entities are required to apply the amendments retrospectively. However, on initial application
of the amendments, the change in the opening equity of the earliest comparative period may
be recognized in opening retained earnings (or in another component of equity, as
appropriate), without allocating the change between opening retained earnings and other
components of equity. Entities applying this relief must disclose that fact. Early application
of the amendments is permitted.
These amendments are not expected to have any impact on the Company.
 Amendments to PFRS 2, Share-based Payment, Classification and Measurement of Share-

based Payment Transactions
The amendments to PFRS 2 address three main areas: the effects of vesting conditions on the
measurement of a cash-settled share-based payment transaction; the classification of a share-
based payment transaction with net settlement features for withholding tax obligations; and
the accounting where a modification to the terms and conditions of a share-based payment
transaction changes its classification from cash settled to equity settled.
On adoption, entities are required to apply the amendments without restating prior periods, but
retrospective application is permitted if elected for all three amendments and if other criteria
are met. Early application of the amendments is permitted.
These amendments are not expected to have any impact on the Company.
 Amendments to PFRS 4, Insurance Contracts, Applying PFRS 9, Financial Instruments, with

PFRS 4
The amendments address concerns arising from implementing PFRS 9, the new financial
instruments standard before implementing the forthcoming insurance contracts standard.
They allow entities to choose between the overlay approach and the deferral approach to deal
with the transitional challenges. The overlay approach gives all entities that issue insurance
contracts the option to recognize in other comprehensive income, rather than profit or loss, the
volatility that could arise when PFRS 9 is applied before the new insurance contracts standard
is issued. On the other hand, the deferral approach gives entities whose activities are
predominantly connected with insurance an optional temporary exemption from applying
PFRS 9 until the earlier of application of the forthcoming insurance contracts standard or
January 1, 2021.
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The overlay approach and the deferral approach will only be available to an entity if it has not
previously applied PFRS 9.
The amendments are not applicable to the Company since the Company have no activities that
are predominantly connected with insurance and does not issue insurance contracts.
 PFRS 15, Revenue from Contracts with Customers

PFRS 15 establishes a new five-step model that will apply to revenue arising from contracts
with customers. Under PFRS 15, revenue is recognized at an amount that reflects the
consideration to which an entity expects to be entitled in exchange for transferring goods or
services to a customer. The principles in PFRS 15 provide a more structured approach to
measuring and recognizing revenue.
The new revenue standard is applicable to all entities and will supersede all current revenue recognition
requirements under PFRSs. Either a full or modified retrospective application is required for annual
periods beginning on or after January 1, 2018.
The Company is currently assessing the impact of adopting PFRS 15.
 PFRS 9, Financial Instruments

PFRS 9 reflects all phases of the financial instruments project and replaces PAS 39, Financial
Instruments: Recognition and Measurement, and all previous versions of PFRS 9. The
standard introduces new requirements for classification and measurement, impairment, and
hedge accounting. PFRS 9 is effective for annual periods beginning on or after January 1,
2018, with early application permitted. Retrospective application is required, but providing
comparative information is not compulsory. For hedge accounting, the requirements are
generally applied prospectively, with some limited exceptions.
The adoption of PFRS 9 will have an effect on the classification and measurement of the
Company’s financial assets and impairment methodology for financial assets, but will have no
impact on the classification and measurement of the Company’s financial liabilities. The
Company is currently assessing the impact of adopting this standard.
 Amendments to PAS 28, Measuring an Associate or Joint Venture at Fair Value (Part of
Annual Improvements to PFRSs 2014 - 2016 Cycle)
The amendments clarify that an entity that is a venture capital organization, or other
qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to
measure its investments in associates and joint ventures at fair value through profit or loss.
They also clarify that if an entity that is not itself an investment entity has an interest in an
associate or joint venture that is an investment entity, the entity may, when applying the equity
method, elect to retain the fair value measurement applied by that investment entity associate
or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries.
This election is made separately for each investment entity associate or joint venture, at the
later of the date on which (a) the investment entity associate or joint venture is initially
recognized; (b) the associate or joint venture becomes an investment entity; and (c) the
investment entity associate or joint venture first becomes a parent. The amendments should
be applied retrospectively, with earlier application permitted.
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 Amendments to PAS 40, Investment Property, Transfers of Investment Property

The amendments clarify when an entity should transfer property, including property under construction
or development into, or out of investment property. The amendments state that a change in use occurs
when the property meets, or ceases to meet, the definition of investment property and there is evidence
of the change in use. A mere change in management’s intentions for the use of a property does not
provide evidence of a change in use. The amendments should be applied prospectively to changes in
use that occur on or after the beginning of the annual reporting period in which the entity first applies
the amendments. Retrospective application is only permitted if this is possible without the use of
hindsight.
 Philippine Interpretation IFRIC-22, Foreign Currency Transactions and Advance Consideration

The interpretation clarifies that in determining the spot exchange rate to use on initial recognition of the
related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-
monetary liability relating to advance consideration, the date of the transaction is the date on which an
entity initially recognizes the nonmonetary asset or non-monetary liability arising from the advance
consideration. If there are multiple payments or receipts in advance, then the entity must determine a
date of the transactions for each payment or receipt of advance consideration. The interpretation may
be applied on a fully retrospective basis. Entities may apply the interpretation prospectively to all
assets, expenses and income in its scope that are initially recognized on or after the beginning of the
reporting period in which the entity first applies the interpretation or the beginning of a prior reporting
period presented as comparative information in the financial statements of the reporting period in which
the entity first applies the interpretation.
 PFRS 16, Leases

Under the new standard, lessees will no longer classify their leases as either operating or finance leases
in accordance with PAS 17, Leases. Rather, lessees will apply the single-asset model. Under this
model, lessees will recognize the assets and related liabilities for most leases on their balance sheets,
and subsequently, will depreciate the lease assets and recognize interest on the lease liabilities in their
profit or loss. Leases with a term of 12 months or less or for which the underlying asset is of low value
are exempted from these requirements.
The accounting by lessors is substantially unchanged as the new standard carries forward the principles
of lessor accounting under PAS 17. Lessors, however, will be required to disclose more information in
their financial statements, particularly on the risk exposure to residual value.
Entities may early adopt PFRS 16 but only if they have also adopted PFRS 15. When adopting PFRS
16, an entity is permitted to use either a full retrospective or a modified retrospective approach, with
options to use certain transition reliefs.
The Company is currently assessing the impact of adopting PFRS 16.
Deferred effectivity
 Amendments to PFRS 10 and PAS 28, Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
The amendments address the conflict between PFRS 10 and PAS 28 in dealing with the loss of control
of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that
a full gain or loss is recognized when a transfer to an associate or joint venture involves a business as
defined in PFRS 3, Business Combinations. Any gain or loss resulting from the sale or contribution of
assets that does not constitute a business, however, is recognized only to the extent of unrelated
investors’ interests in the associate or joint venture.
*SGVFS024659*
- 20 -
On January 13, 2016, the Financial Reporting Standards Council postponed the original effective date
of January 1, 2016 of the said amendments until the International Accounting Standards Board has
completed its broader review of the research project on equity accounting that may result in the
simplification of accounting for such transactions and of other aspects of accounting for associates and
joint ventures.
3. Significant Accounting Judgments and Estimates
The Company’s financial statements prepared in accordance with PFRSs require management to make
judgments and estimates that affect amounts reported in the financial statements and related notes. The
judgments and estimates used in the financial statements are based upon management’s evaluation of
relevant facts and circumstances as of the date of the Company’s financial statements. Actual results
could differ from such estimates.
Judgments and estimates are continually evaluated and are based on historical experiences and other
factors, including expectations of future events that are believed to be reasonable under the
circumstances. The following items are those matters which the Company assess to have significant
risks arising from estimation uncertainties:
Judgment
Applicability of Philippine Interpretations of International Financial Reporting Interpretation
Committee (IFRIC) 12, Service Concession Arrangements on the Solar Energy Service Contract
(SESC)
An arrangement would fall under IFRIC 12 if the two conditions below are met:
a) the grantor controls or regulates the services that the operator must provide using the
infrastructure, to whom it must provide them, and at what price; and
b) the grantor controls any significant residual interest in the property at the end of the
concession term through ownership, beneficial entitlement or otherwise. However,
infrastructure used for its entire useful life (“whole of life assets”) is within the scope if the
arrangement meets the conditions in (a).
Based on management’s judgment, by applying the “whole of life” criterion, the SESC entered into by
the Company is outside the scope of IFRIC 12, since the Company controls the significant residual
interest in the properties (i.e., the estimated useful life of the assets exceeds the service concession
periods) at the end of the concession term through ownership.
*SGVFS024659*
- 21 -
Estimates
Estimating Impairment of Trade and Other Receivables and Due from Related Parties
The Company assesses at each reporting date whether there is any objective evidence that loans and
receivables are impaired. To determine whether there is objective evidence of impairment, the
Company considers factors such as the probability of insolvency or significant financial difficulties of
the debtor and default or significant delay in payments.
Where there is objective evidence of impairment, the amount and timing of future cash flows are
estimated based on age and status of the receivable, as well as on historical loss experience. Allowance
for impairment losses on loans and receivables is provided when management believes that the balance
cannot be collected or realized after exhausting all efforts and courses of action.
No provision for impairment losses was recognized in 2016 and 2015. The aggregate carrying values of
trade and other receivables and due from related parties amounted to P
=92611.52 mbillion and nil as of
December 31, 2016 and 2015, respectively (see Notes 4 and 8).
Estimating Useful Lives of Property, Plant and Equipment (except Lland)

The Company estimates the useful lives of property, plant and equipment based on the period over
which these assets are expected to be available for use. The estimated useful lives are reviewed
periodically and are updated if expectations differ from previous estimates due to physical wear and
tear, technical or commercial obsolescence and legal or other limits on the use of these assets. In
addition, estimation of the useful lives is based on collective assessment of industry practice, internal
technical evaluation and experience with similar assets. It is possible that future results of operations
could be materially affected by changes in these estimates brought about by changes in the factors
mentioned. The amounts and timing of recorded expenses for any period would be affected by changes
in these factors and circumstances. The carrying value of property, plant and equipment (except land)
amounted to P =3.3 billion and nil as of December 31, 2016 and 2015, respectively (see Note 5).
Estimating Impairment of Nonfinancial Assets

The Company assesses impairment on input VAT, property, plant and equipment, deposits for land
acquisition and investment property whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable.
The factors that the Company considers important which could trigger an impairment review include
the following:
 Significant underperformance relative to expected historical or projected future operating
results;
 Significant changes in the manner of use of the acquired assets or the strategy for overall
business; and
 Significant negative industry or economic trends.
An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable
amount. The estimated recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. The fair value less costs to sell is the amount obtainable from the sale of assets in an arm’s
length transaction while value in use is the present value of estimated future cash flows expected to
arise from the continuing use of an asset and from its disposal at the end of its useful life. For
impairment loss on specific assets, the recoverable amount represents the fair value less costs to sell.
No provision for impairment losses was recognized in 2016 and 2015. The aggregate carrying values of
input VAT, property, plant and equipment, deposits for land acquisition and investment property
amounted to P=3.3.3 billion billion and P
=5.0 million as of December 31, 2016 and 2015, respectively
(see Notes 5 and 6).
*SGVFS024659*
- 22 -
4. Trade and Other Receivables

2015
2016
P
=
517,713,78 =
P
Advances to suppliers 9 Formatted: List Paragraph, Indent: Left: 0.25", Space
P
= After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Indent at: 0.66", Tab stops: 0.75", Left
393,366,70 =–
P
Trade 1 Formatted Table
– Formatted: List Paragraph, Indent: Left: 0.25", Space
Others 89,621 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
P
= Indent at: 0.66", Tab stops: 0.75", Left
393,456,32 Formatted: List Paragraph, Indent: Left: 0.25", Space
2911,170,1 =–
P After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
11 Indent at: 0.66", Tab stops: 0.75", Left
Formatted: Font: Bold
Advances to suppliers pertain to advances made by the Company attributable to the _________ of the
Formatted: List Paragraph, Indent: Left: 0.25", Space
Project. This is expected to be realized within one year.
After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Trade receivables arise from sale of electricity to Transmission Corporation (TransCo). These aare
noninterest-bearing and are generally collectible in 30 to 60 days. Majority of the Company’s trade
receivables arise from sale of electricity to National Transmission Corporation (TransCo).
Interest income earned from the past due accounts of TransCo amounted to P =1.7 million in 2016.
Interest income pertains to the monthly interest on all unpaid amounts based on the
91-day treasury bill rate plus 300 basis points until fully paid.
Others represent advances to employees which are noninterest-bearing and are subject to liquidation
within 30 days.
5. Property, Plant and Equipment

Formatted Table
Details of property, plant and equipment as of December 31, 2016 are as follows:
Solar After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Power Total
Land Plant Formatted: List Paragraph, Indent: Left: 0.25", Space
P
P
= P
3,43540,67
2934,890,0 3,405,786, 6,141 Formatted Table
Acquisition costs 25 116 Formatted: List Paragraph, Indent: Left: 0.25", Space
Reclassification from After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
investment 5,000,000 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
property 5,000,000 − Formatted: List Paragraph, Indent: Left: 0.25", Space
3,440,676, After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
3,405,786, 141 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
34,890,025 116 Formatted: List Paragraph, Indent: Left: 0.25", Space
Less: D depreciation for the (113,526,2 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
year (113,526,2 04) Indent at: 0.66", Tab stops: 0.75", Left
(see Note 101) − 04) Formatted Table
P
=
P
= Formatted: List Paragraph, Indent: Left: 0.25", Space
3,327,149, After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
P
= 3,292,259, 937 Indent at: 0.66", Tab stops: 0.75", Left
Net book values 34,890,025 912
*SGVFS024659*
- 23 -
Land
In 2016, the Company completed and started the commercial operations of 63.3 MW solar power plant
situated in the Municipality of Calatagan, Province of Batangas (see Note 15). The total land area
covered by the solar power plant is 14365 hectares.
In 2016, the Company acquired parcels of land amounting to P

=43.1 million. Land with net book value
of =
P43.1 million as of December 31, 2016 have been mortgaged as security for short term loan facility
(see Note 9).
InOn September 10, 2015, the Company acquired a parcel of land covering 15 hectares amounting to P =
5.0 million recognized under “Investment property” account. In 2016, the contract was rescinded and
the Company entered into an amended the Deed of Absolute Sale amounting toand paid an additional
=227.2 million to landowners. andThe amended contract price of =
P P27.2 million is recognized as part
ofunder “Land” account, including the parcel of land in 2015 amounting to P
=5.0 million reclassified
from “Investment property” account to “Land” account. The Company also incurred land related costs
totaling to P
=7.7 million in 2016.
As of December 31, 2016, land with net book value of =

P34.9 million have been mortgaged as security
for short term loan facility (see Note 9).
The Company is still in the process of transferring acquiring titles of other parcels of land from various
owners with a total land area of 12811 hectares to the name of the Company.
*SGVFS024659*
- 24 -
Solar Power Plant

On November 15, 2015, Tthe Company entered into an Engineering, Procurement and Construction
(EPC) Agreement, with amendments dated as Amended on October 10, 2016, with Solar Philippines
Commercial Rooftop Projects, Inc. (SPCRPI), an affiliate of the Company, for a total project cost of
=3.4 billion, for the design, manufacture, delivery of the works from place of manufacture to the project
P
site, erection, testing and commissioning for a complete and operational solar power plant. The
agreement covers the installation of photovoltaic modules, medium voltage power stations,
transformers, mounting structures, foundations and flood protection.
The Company issued a Taking-Over Certificate to SPCRPI on February 29, 2016 to declare that the
terms of the contract has been satisfactorily fulfilled. This was in response to a Notice of Acceptability
of Work issued by the owner’s engineer dated February 25, 2016
The solar power plant was completed and started commercial operations on March 11, 2016
(see Notes 8 and 166).
As of December 31, 2016, the Company’s outstanding payable arising from the EPC Agreement with
SPCRPI amounted to P=3.4 billion (see Notes 7 and 8).
6. Deposits for Land Acquisition

As of December 31, 2016, deDeposits for land acquisitions are payments made by the Company to
various landowners which will be used for the acquisition of the parcels of land amounting to
=13.5 million as of
P
December 31, 2016. As of December 31, 2016, the lands are under the name of the respective
landowners.
7. Accounts Payable and Accrued Expenses
2015
2016 Formatted Table
P
=
3,401,103,8023,333,08 =−
P
Accounts payable (see Note 8) 6,244 Formatted: List Paragraph, Indent: Left: 0.25", Space
− After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Provision for contingencies 68,017,558 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Interest payableAccrued interest (see Note − Formatted: List Paragraph, Indent: Left: 0.25", Space
9) 7,816,309 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
− Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Government share payable (see Note 154) 4,570,732 Formatted: List Paragraph, Indent: Left: 0.25", Space
19,320 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Accrued expenses 1,383,2776 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
=19,320
P Formatted: List Paragraph, Indent: Left: 0.25", Space
P
=3,414,874,12019 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Accounts payable includes the outstanding payable arising from the =P3.4 billion EPC Agreement with After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
SPCRPI and the related withholding taxes payable amounting to P =68.0 million amounting to P
=3.4 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
billion (see Notes 5, 8 and 166). Other accounts payable include unpaid operations and maintenance Formatted: List Paragraph, Indent: Left: 0.25", Space
costs in relation to the solar power plant. After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Accrued expenses consist mainly of accrual for benefits to host communities, light and water and other
expenses already incurred but not yet paid by the Company. These are noninterest-bearing and are
normally settled within one year.
*SGVFS024659*
- 25 -
Government share payable pertains to outstanding payable to the Government for its share in the royalty
fee of one percent of the Company’s gross income from certain earnings generated from renewable
energy. Government share are allocated between the DOE and Local Government Units (LGUs) where
the solar resources are located and payable within 60 days after the end of each quarter (see Note 154).
Related Party Transactions
In 2016, the Company recognized a provision for contingencies wherein payment is probable and the
amount is estimable as at reporting date. Management reassesses its estimates on an annual basis to
determine the reasonableness of the provision. Disclosure of additional information usually required by
PAS 37, Provisions, Contingent Liabilities and Contingent Assets may prejudice the Company’s
position and negotiating strategy. Thus, as permitted under paragraph 92 of PAS 37, only general Formatted: List Paragraph, Indent: Left: 0.25", Space
descriptions are provided. After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Indent at: 0.66", Allow hanging punctuation, Adjust space
between Latin and Asian text, Adjust space between Asian
text and numbers, Font Alignment: Auto, Tab stops: 0.75",
8. Related Party Transactions Left + Not at 0.15" + 0.3"
Formatted Table
Related party relationship exists when the party has the ability to control, directly or indirectly, through
one or more intermediaries, or exercise significant influence over the other party in making financial Formatted: List Paragraph, Indent: Left: 0.25", Space
and operating decisions. Such relationships also exist between and/or among entities which are under After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
common control with the reporting entity and its key management personnel, directors and between Latin and Asian text, Adjust space between Asian
stockholders. In considering each possible related party relationship, attention is directed to the text and numbers, Font Alignment: Auto, Tab stops: 0.75",
substance of the relationships, and not merely to the legal form. Left + Not at 0.15" + 0.3"
Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
The Company obtains unsecured and unguaranteed, noninterest-bearing cash from its related parties for 0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
its working capital requirements, which are payable on demand. space between Latin and Asian text, Adjust space between
Asian text and numbers, Font Alignment: Auto, Tab stops:
0.75", Left + Not at 0.15" + 0.3"
The Company’s transactions and outstanding balance with related parties are as follows: Formatted: List Paragraph, Indent: Left: 0.25", Space
Transactions During Outstanding Balance 0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
the Period As of December 31 space between Latin and Asian text, Adjust space between
Conditi Asian text and numbers, Font Alignment: Auto, Tab stops:
ons 0.75", Left + Not at 0.15" + 0.3"
2016 2015 2016 2015 Terms
Due from
related parties: Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
space between Latin and Asian text, Adjust space between
Affiliates:
0.75", Left + Not at 0.15" + 0.3"
SPCRPI
Unimp Formatted: List Paragraph, Indent: Left: 0.25", Space
P
= aired; Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
517,7 P
= On demand; Unsecu 0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
Cash 13,79 517,71 non-interest red space between Latin and Asian text, Adjust space between
advances 0 =−
P 3,790 =−
P bearing Asian text and numbers, Font Alignment: Auto, Tab stops:
Solar 0.75", Left + Not at 0.15" + 0.3"
Philippines
Tarlac Formatted: List Paragraph, Indent: Left: 0.25", Space
Corporation Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
(SP 0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
Tarlac) space between Latin and Asian text, Adjust space between
On demand; Asian text and numbers, Font Alignment: Auto, Tab stops:
Cash 8,010 8,010, non-interest Unimp 0.75", Left + Not at 0.15" + 0.3"
advances ,258 − 258 − bearing aired;
*SGVFS024659*
- 26 -
Transactions During Outstanding Balance

the Period As of December 31
Conditi
ons Formatted: List Paragraph, Indent: Left: 0.25", Space
2016 2015 2016 2015 Terms After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Unsecu Indent at: 0.66", Allow hanging punctuation, Adjust space
red between Latin and Asian text, Adjust space between Asian
Solar Left + Not at 0.15" + 0.3"
Philippines
Module Formatted Table
Manufacturing
Corporati Formatted: List Paragraph, Indent: Left: 0.25", Space
on Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
Module space between Latin and Asian text, Adjust space between
Manufact Asian text and numbers, Font Alignment: Auto, Tab stops:
uring)) 0.75", Left + Not at 0.15" + 0.3"
Unimp Formatted: List Paragraph, Indent: Left: 0.25", Space
aired;
On demand; Unsecu
0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
Cash 6,574 6,574, non-interest red
space between Latin and Asian text, Adjust space between
advances ,620 − 620 − bearing
Solar Asian text and numbers, Font Alignment: Auto, Tab stops:
Philippines 0.75", Left + Not at 0.15" + 0.3"
Tanauan Formatted: List Paragraph, Indent: Left: 0.25", Space
Corporation Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
Tanauan) space between Latin and Asian text, Adjust space between
Unimp Asian text and numbers, Font Alignment: Auto, Tab stops:
aired;
0.75", Left + Not at 0.15" + 0.3"
On demand; Unsecu
Cash 770,0 770,00 non-interest red Formatted Table
advances 00 − 0 − bearing
P
=
533,0 P
= Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
68,66 533,06 0.41" + Indent at: 0.66", Allow hanging punctuation, Adjust
8 =−
P 8,668 =−
P space between Latin and Asian text, Adjust space between
0.75", Left + Not at 0.15" + 0.3"
Accounts Formatted: List Paragraph, Indent: Left: 0.25", Space
payable: After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Affiliate: Indent at: 0.66", Allow hanging punctuation, Adjust space
SPCRPI text and numbers, Font Alignment: Auto, Tab stops: 0.75",
Left + Not at 0.15" + 0.3"
EPC P
= P
= Formatted ...
Agreement 3,400 3,400, On demand; Unsecu
Formatted ...
,000, 000,00 non-interest red
(see Note 15) 000 =−
P 0 =−
P bearing Formatted ...
Formatted ...
Due to related Formatted ...
parties:
Formatted ...
Parent
Company: Formatted ...
SPPPHI
Formatted ...
P
= P
= On demand; Unsecu Formatted ...
Cash 21,03 21,037 non-interest red
advances 7,457 =−
P ,457 =−
P bearing Formatted ...
Affiliates:
Formatted ...
SPCRPI Formatted ...
Unsecu Formatted ...

(5,44 5,44 On demand;
Cash 4,652 4,65 5,444 non-interest red Formatted: Font: Bold
advances ) 2 − ,652 bearing
*SGVFS024659*
- 27 -
Transactions During Outstanding Balance

the Period As of December 31
Conditi
ons
2016 2015 2016 2015 Terms
Solar
Philippines Left + Not at 0.15" + 0.3"
Tagoloan Formatted Table
Corporation
(SP Formatted: List Paragraph, Indent: Left: 0.25", Space
Tagoloan) Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
On demand; Unsecu 0.41" + Indent at: 0.66", Don't keep with next, Allow
Cash 1,655 1,655, non-interest red hanging punctuation, Adjust space between Latin and Asian
advances ,290 − 290 − bearing text, Adjust space between Asian text and numbers, Font
=
P Alignment: Auto, Tab stops: 0.75", Left + Not at 0.15" +
P
= 5,44 P
= P
= 0.3"
17,24 4,65 22,692 5,444
Formatted Table
8,095 2 ,747 ,652
Transactions Outstanding Balance After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
During the Period As of December 31 Indent at: 0.66", Allow hanging punctuation, Adjust space
Conditio between Latin and Asian text, Adjust space between Asian
201 ns text and numbers, Font Alignment: Auto, Tab stops: 0.75",
2016 5 2016 2015 Terms Left + Not at 0.15" + 0.3"
Accounts payable
Affiliate:
SPCRPI
Left + Not at 0.15" + 0.3"
On
P
= deman Formatted: Font: Bold
EPC 3,40 P
= d;
Agreement 0,00 3,400, non- Unsecur Formatted: Font: 7 pt
(see Note 0,00 000,00 interest ed
14) 0 =−
P 0 =−
P bearing
P
3,40 P
=
0,00 3,400, Formatted Table
0,00 000,00
0 =−
P 0 =−
Due to related
parties
Parent Company:
SPPPHI Left + Not at 0.15" + 0.3"
Formatted ...
On
deman Formatted ...
P
= d; Formatted
7,33 P
= non- Unsecur ...
Cash 7,86 7,337, interest ed Formatted ...
advances 9 =−
P 869 =−
P bearing
Affiliates: Formatted ...
Formatted ...
SPCRPI
Formatted ...
On Formatted
deman ...
d; Formatted ...
5,4 non- Unsecur
Cash 44, 5,444 interest ed Formatted ...
advances − 652 − ,652 bearing Formatted ...
P
= =
P
7,33 5,4 P
= P
= Formatted ...
7,86 44, 7,337, 5,444
Formatted ...
9 652 869 ,652
Formatted ...
*SGVFS024659*
- 28 -
Due from SPCRPI pertains to payments made by the Company attributable to the construction of the
Solar Power Plant. With respect to the amounts due from SPCRPI, the Company has no legal right to
set-off amounts and has no intention to settle on a net basis as of December 31, 2016.
The Company did not employ any personnel as of December 31, 2016 and 2015. The administrative
and finance functions of the Company are being handled by SPCRPI, an affiliate of the Company, at no
cost to the Company.
9. Notes Payable
On February 16, 2016, the Company obtained a short-term loan facility amounting to
=400 million with BDO Unibank, Inc. The short-term loan facility has a tenor of one year, maturing on
P
February 17, 2017, and has an interest rate of 5.0% payable semi-annually. As of December 31, 2016,
P₱399.7
the carrying value of short-term loan facility (net of unamortized debt issue cost) amounted to =
million.
Total debt issue costs related to the short-term loan facility amounted to P
=2.0 million. The unamortized
debt issue costs as of December 31, 2016 amounted to P =0.3 million.
Accrued interest amounted to =P7.8 million as of December 31, 2016 (see Note 79). Interest expense
and amortization of debt issue costs recognized under “Interest expense” account amounted to P
=1820.51
million and P
=1.7 million in 2016, respectively.
Costs of Sale of Electricity

The entire proceeds from short-term loan facility was advanced the Parent Company and is presented as
part of “Due from related parties” account in the statement of financial position (see Note 8).
10. Costs of Sale of Electricity
Costs of sale of electricity in 2016 are as follows:
P
=
113,526,20
4
Depreciation (see Note 5) Formatted: List Paragraph, Indent: Left: 0.25", Space
1,254,771 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Security services
Purchases from Philippine Electricity Market 951,199 Formatted: List Paragraph, Indent: Left: 0.25", Space
Corporation (PEMC)
663,485
Taxes and licenses Formatted: List Paragraph, Indent: Left: 0.25", Space
2,516,3741 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
,565,175
Others Formatted: List Paragraph, Indent: Left: 0.25", Space
P
117,960,83
4 Formatted Table
Others mainly pertain to market fees and payments made to Philippine Electricity Market Corporation Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
(PEMC). Formatted: Right, Tab stops: Not at 3" + 6"
*SGVFS024659*
- 29 -
11. General and Administrative Expenses
2015
2016
=13,319
P
Taxes and licenses (see Note 15) P
=4,815,221 Formatted: List Paragraph, Indent: Left: 0.25", Space
− After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Travel and transportation 627,645 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
− Formatted: List Paragraph, Indent: Left: 0.25", Space
Staff costs 604,451 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
19,320 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Professional fees 400,000
Others 504,401 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
=461,472
P
P
=6,951,718
12. Income Tax After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
The provision for current income tax in 2016 and 2015 represents statutory income tax of 10% and Formatted: List Paragraph, Indent: Left: 0.25", Space
30%, respectively. The Company is registered with the BOI under Republic Act No. 9513 otherwise After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
known as the Renewable Energy Act of 2008. As such, the Company benefits from a seven year ITH Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
beginning March 11, 2016, coinciding with the start of commercial operations. After ITH, the
Company shall be subject to 10% statutory income tax rates for the renewable energy operations.
The reconciliation of the statutory income tax to the effective income tax in 2016 and 2015 follows:
2015
2016
(P
=
P
= 138,4
Provision for (benefit from) income tax at statutory income 43,16 42) Formatted: List Paragraph, Indent: Left: 0.25", Space
tax rate (10%/30%) 4,683 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Tax effects of: Formatted: List Paragraph, Indent: Left: 0.25", Space
717 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Nondeductible expenses 59 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
(43,16 − Formatted: List Paragraph, Indent: Left: 0.25", Space
Loss (iIncome) from ITH registered activity 4,599) After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
− Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Interest income subjected to final tax (143) Formatted: List Paragraph, Indent: Left: 0.25", Space
25 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Movement in unrecognized deferred income tax assets −
=−
Provision for income tax =−
P Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
In 2015, the Company has carryover NOLCO for which no deferred income tax assets have been Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
recognized amounting to =
P459,081, which will expire in 2018. Formatted: List Paragraph, Indent: Left: 0.25", Space
On August 26, 2015, the Company was registered with the BOI. These certifications served as the basis Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
of entitlement to incentives under Republic Act No. 9513, otherwise known as the Renewable Energy
Act of 2008, which includes an income tax holiday (ITH) for a period of seven (7) years from the start
of its commercial operation, duty free importation of machineries for ten (10) years, and zero (0)
*SGVFS024659*
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percent value added tax among others. As of December 31, 2016, the Company is still in the process of
increasing its stockholder’s equity as required by the BOI registration terms and conditionsOn
December 13, 2016, the Company already complied with the majority of the requirements stated in the
terms and conditions of the BOI registration (see Note 15).
Management will reassess any unrecognized deferred income tax assets at each reporting date and are
recognized to the extent that it has become probable that future taxable profits will allow the deferred
income tax asset to be recovered after the ITH period.
13. Financial Instruments and Financial Risk Management

Financial Risk Management Objectives and Policies
The Company’s principal financial instruments comprise of cash, trade and other receivables, accounts
payable and accrued expenses, amounts due to and from related parties and notes payable. The main
purpose of these financial instruments is to finance the Company’s operations.
The BOD has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Company’s risk management policies are established to identify and
manage the Company’s exposure to financial risks, to set appropriate transaction limits and controls,
and to monitor and assess risks and compliance to internal control policies. Risk management policies
and structure are reviewed regularly to reflect changes in market conditions and the Company’s
activities.
The Company has exposure to liquidity risk and credit risk from the use of its financial instruments.
The Company is not exposed to interest rate risk given that the Company’s interest bearing borrowings
contains fixed interest rates. The BOD reviews and approves the policies for managing each of these
risk and they are summarized below:.
*SGVFS024659*
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Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations
associated with financial instruments. The Company manages liquidity risk by maintaining a
balance between continuity of funding and flexibility. The Company maintains a level of cash
deemed sufficient to finance its operations. As part of its liquidity risk management, the
Company regularly evaluates its projected and actual cash flows.
The table below summarizes the maturity profile of the Company’s financial assets and
liabilities based on remaining undiscounted contractual obligations.
2016
More
than 1
year
On Within but less More
deman one than 5 than 5 Total
d year years years Formatted: List Paragraph, Indent: Left: 0.25", Space
Financial assets Indent at: 0.66", Tab stops: 0.75", Left
P
=
P
= 1,320,1 Formatted: List Paragraph, Indent: Left: 0.25", Space
1,320,1 31 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Cash 31 =−
P =−
P =−
P Indent at: 0.66", Tab stops: 0.75", Left
393,456
393,366 ,322
Trade receivables 89,621 ,701 − −
533,068
533,068 ,6681,0 Formatted: List Paragraph, Indent: Left: 0.25", Space
,6681,0 49,660, After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Due from related 49,660, 262 Indent at: 0.66", Tab stops: 0.75", Left
parties 262 − − −
P
P
= 927,845 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
534,478 ,121P
,420P
= P
=P= 1,444,4
1,051,0 393,366 36,715
70,014 ,701 P
=P=− P
=P=− Formatted: List Paragraph, Indent: Left: 0.25", Space
Formatted Table
Financial Liabilities:
P
=P= Formatted: List Paragraph, Indent: Left: 0.25", Space
Accounts payable P
=P= 3,346,8 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
and accrued 3,346,8 55,387 Indent at: 0.66", Tab stops: 0.75", Left
expenses* P
=P=− 55,387 P
=P=− P
=P=−
22,692,
747539, Before: 0 pt, After: 10 pt, Bulleted + Level: 1 + Aligned at:
22,692,
747539, 326,262 0.41" + Indent at: 0.66", Tab stops: 0.75", Left
Due to related parties 326,262 − − − Formatted: List Paragraph, Indent: Left: 0.25", Space
409,839 ,756 Indent at: 0.66", Tab stops: 0.75", Left
Notes payable** − ,756 − −
P
P
= 87,8904 Indent at: 0.66", Tab stops: 0.75", Left
22,692, P
= ,296,02
747539, 3,756,6 1,405
326,262 95,143 P
= P
=
*Excludes taxes payable to government agencies
**Includes future interest payments Formatted Table
*SGVFS024659*
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2015
More
than 1
year but
less More
On Within than 5 than 5 Total
demand one year years years Formatted: List Paragraph, Indent: Left: 0.25", Space
Financial asset: Indent at: 0.66", Tab stops: 0.75", Left
=65,000
P
Cash =65,000
P =−
P =−
P =−
Formatted Table
Financial Liabilities:
Accounts payable and =19,320
accrued expenses =−
P =19,320
P =−
P =−
5,444,6 Indent at: 0.66", Tab stops: 0.75", Left
5,444,6 52
Due to related parties 52 − − −
P
=
P
= 5,463,9
5,444,6 72 Formatted: List Paragraph, Indent: Left: 0.25", Space
52 =19,320
P =−
P =−
Credit risk Formatted: List Paragraph, Indent: Left: 0.25", Space
The Company’s solar power generation business trades with only one customer, TransCo, a After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
government-owned and controlled corporation. Any failure on the part of TransCo to pay their Indent at: 0.66", Tab stops: 0.75", Left
obligations to the Company would significantly affect the Company’s business operations. As a Formatted: List Paragraph, Indent: Left: 0.25", Space
practice, the Company monitors closely its collections from TransCo and may charge interest on After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
delayed payments following the provision of the REPA. Receivable balances are monitored on an Indent at: 0.66", Tab stops: 0.75", Left
ongoing basis to ensure that the Company’s exposure to bad debts is not significant. Formatted Table
With respect to the credit risk arising from other financial assets of the Company, which comprise of After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
cash (excluding cash on hand), trade and other receivables and due from related parties, the Company Indent at: 0.66", Tab stops: 0.75", Left
exposure to credit risk arises from default of the counterparty, with maximum exposure equal to the
carrying amount of these instruments.
Credit Quality of Financial Assets

Financial assets are classified as high grade if the counterparties are not expected to default in
settling their obligations. Thus, the credit risk exposure is minimal. These counterparties
normally include customers, banks and related parties who pay on or before due date.
Financial assets are classified as a standard grade if the counterparties settle their obligation
with the Company with tolerable delays. Low grade accounts are accounts that have
probability of impairment based on historical trend. These accounts show propensity of
default in payment despite regular follow-up actions and extended payment terms.
As of December 31, 2016 and 2015, financial assets categorized as neither past due nor
impaired are viewed by management as high grade, considering the collectibility of the
receivables and the credit history of the counterparties.
A financial asset is past due when a counterparty has failed to make a payment when contractually due.
As of December 31, 2016 and 2015, the aging analysis per class of financial assets that were past due is
as follows:
Formatted Table
2016
Formatted: List Paragraph, Left, Indent: Left: 0.25", Right:
Past due but not impaired 0", Space After: 10 pt, Bulleted + Level: 1 + Aligned at:
Neithe Less More 0.41" + Indent at: 0.66", Tab stops: 0.75", Left + Not at
Total
r past than 31 to than Impair 0.13" + 0.26" + 0.74"
due 30 days 60 days 60 days ed
*SGVFS024659*
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nor
impair Formatted: List Paragraph, Indent: Left: 0.25", Right: 0",
ed Space After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41"
P
= + Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.13" +
P
= 1,120,1 0.26" + 0.74"
1,120,1 31
Cash 31 =–
P =–
P =–
P =–
P Formatted: List Paragraph, Indent: Left: 0.25", Right: 0",
393,45 Space After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41"
Trade 123,01 84,070, 26,206, 160,16 6,322 + Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.13" +
receivables 2,216 813 666 6,627 – 0.26" + 0.74"
533,06
Due from 533,06 8,668 Formatted: List Paragraph, Indent: Left: 0.25", Right: 0",
related parties 8,668 – – – – Space After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41"
P
= P
= + Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.13" +
657,20 P
= P
= P
= 927,64 0.26" + 0.74"
1,015 84,070, 26,206, 160,16 5,121
813 666 6,627 =–
P Formatted: List Paragraph, Indent: Left: 0.25", Right: 0",
Space After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41"
+ Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.13" +
2015 0.26" + 0.74"
Past due but not impaired Formatted: List Paragraph, Indent: Left: 0.25", Space
Neither After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
past Indent at: 0.66", Tab stops: 0.75", Left
due nor Less More
impaire than 31 to than Impaire Total Formatted: Font: Not Bold
d 30 days 60 days 60 days d
P
= Formatted Table
P
= 65,000
Cash 65,000 =–
P =–
P =–
P =–
P
5,444,6 Formatted: List Paragraph, Left, Indent: Left: 0.25", Right:
52
Due from related 5,444,6 0", Space After: 10 pt, Bulleted + Level: 1 + Aligned at:
parties 52 – – – –
0.41" + Indent at: 0.66", Tab stops: 0.75", Left + Not at
=
P P
=
5,509,6 5,509,6 0.13" + 0.26" + 0.74"
52 52
=–
P =–
P =–
P =–
P
Formatted: List Paragraph, Indent: Left: 0.25", Right: 0",
Fair Value and Category of Financial Instruments Space After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41"
The carrying amounts of cash, trade and other receivables, accounts payable and accrued expenses, + Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.13" +
0.26" + 0.74"
notes payable and amounts due from and to related parties approximate their fair values due to their
short-term maturity. Formatted: Font: Not Bold
0.26" + 0.74"
0.26" + 0.74"
*SGVFS024659*
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Capital Management
The primary objectives of the Company’s capital management policies are to afford the financial
flexibility to support the Company’s business initiatives and to maximize shareholder value. The
Company manages its capital structure and makes adjustments to it, in light of changes in economic
conditions.
No changes were made in the objectives, policies or processes for the year ended
December 31, 2016. The Company was able to meet its capital management objectives as of
December 31, 2016 and for the period from June 9, 2015 to December 31, 2015.
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The Company considers the following as its core capital as of December 31, 2016:
2015P=
7,337,869
Due to related parties 2016 Formatted Table
P
= =5,444,652
P Formatted: Font: Bold
Due to related parties 22,692,747
250,00062, Formatted: List Paragraph, Indent: Left: 0.25", Space
500 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Common stock (net of subscription receivable) 250,000
(461,472)4 Formatted: List Paragraph, Indent: Left: 0.25", First line:
431,185,36 0 ch, Space After: 10 pt, Bulleted + Level: 1 + Aligned at:
31,185,361
Retained earningsrnings (deficit) 1 0.25" + 0.5"
P
=
P
= 5,045,6804 Formatted: Font: Bold
454,128,10 38,773,230 Formatted: Font: Bold
8 Formatted: List Paragraph, Indent: Left: 0.25", Space
The Company is not subject to any externally imposed capital requirement. Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.25" +
Formatted: Font: Bold
Formatted: List Paragraph, Indent: Left: 0.25", First line:
Notes to Statement of Cash Flows 0 ch, Space After: 10 pt, Bulleted + Level: 1 + Aligned at:
Noncash investing activity 0.25" + 0.5"
Noncash investing activity in 2016 pertains to the outstanding balance to SPCRPI related to the EPC
agreement amounting to P =3.4 billion for the Company’s solar power plant (see Note 16).
14. Solar Energy Service Contract (SESC)
On December 11, 2014, SPCRPI, an affiliate of the Company, entered into a Solar Energy Service
Contract (SESC) with the DOEepartment of Energy granting SPCRPI the exclusive right to explore,
develop and utilize the energy resource with the contract area covering a total of 648 hectares with
equivalent production area of 143 hectares. The SESCRE contract allows for two years non-extendable
term for pre-development within which the developer should be able to declare commerciality. A
Certificate of Confirmation of Commerciality shall be issued by the DOE to affirm the declaration. The
contract shall remain in force for the balance of a period of twenty-five years (25) from the effective
date.
The SESC is a two (2) years exclusive contract extendible for one (1) year, if the Company has not been
in default in its exploration, financial and other work commitments and has provided a work program
for the extension period upon confirmation by Department of Energy (DOE). Upon declaration of
commerciality, as confirmed by the DOE, the SESC shall remain in force for the balance of the 25-year
period for the development/commercial stage. The solar power plant was commissioned and started
commercial operations on March 11, 2016.
On August 4, 2015, SPCRPI executed a Deed of Assignment transferring all its rights and obligations
under the SESC No. 2014-12-091, including all of its annexes to the Company. . The DoE issued a
Certification of Registration in favor of the Company as an RE Developer of Solar Energy Resources in
Calatagan and Balayan, Batangas which covers SESC No. 2014-12-91 on August 24, 2015.
The Company initially declared commerciality on September 24, 2015 but later on requested two
amendments dated November 23, 2015 and February 9, 2016 respectively and was both approved by
the DOoE. The plant started commercial operations March 11, 2016 and was deemed FIT eligible
March 14, 2016 as stated in the Certificate of Endorsement for Feed-in-Tariff Eligibility COE-FIT-No.
S-2016-03-015 signed by Secretary Zenaida Monsada with the DOE.
*SGVFS024659*
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Government share are allocated between the DOE and local government units where the solar resources
are located and payable within 60 days after the end of each quarter. Government share presented
under “Taxes and licenses” as part of “General and administrative expenses” account in the statement of
comprehensive income amounted to = P4.6 million and nil in 2016 and 2015, respectively (see Notes 79
and 11).
*SGVFS024659*
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*SGVFS024659*
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15. Other Matmatters
Engineering, Procurement and Construction Agreement

On November 15, 2015, the Company entered into an Engineering, Procurement and Construction
Agreement, with amendments dated October 10, 2016, with SPCRPI, an affiliate of the Company, for a
total project cost of =
P3.4 billion, for the design, manufacture, delivery of the works from place of
manufacture to the project site, erection, testing and commissioning for a complete and operational
solar power plant. The agreement covers the installation of photovoltaic modules, medium voltage
power stations, transformers, mounting structures, foundations and flood protection.The Company
entered into an Engineering, Procurement and Construction Agreement, as Amended on October 10,
2016, with SPCRPI, an affiliate of the Company, for the design, procurement, construction, testing and
commissioning requirements for a complete and fully operational solar power plant. The agreement
covers detailed design, procurement of materials and services, civil works, module and electrical
installation and connection, substation works, transmission line and all other works deemed necessary
for the plant.
The Company issued a Taking-Over Certificate to SPCRPI on February 29, 2016 to declare that the
terms of the contract has been satisfactorily fulfilled. This was in response to a Notice of Acceptability
of Work issued by the owner’s engineer dated February 25, 2016.
Connection Agreement
In 2015, the Connection Agreement was entered between SPCRPI, an affiliate of the Company, and
National Grid Corporation of the Philippines (NGCP) wherein the Calatagan solar power plant’s
generation facility shall connect to NGCP’s transmission system.. SPCRPI assigned to the Company all
of its rights and obligations under this agreement through a deed of of assignment executed on February
3, 2017. A copy of the connection agreement was sent to the NGCP on the same day.
Transmission Service Agreement

The Transmission Service Agreement dated May 24, 2016 was entered between SPCRPI, an affiliate of
the Company, and NGCP, who took over transmission business of TransCo, wherein the former is
engaged in the business of power generation and the latter is authorized to act as the transmission
service provider on the 69 kilovolt (kV) line of NGCP along the Calatagan, Batangas area. SPCRPI
assigned to the Company all of its rights and obligations under this agreement through a deed of
assignment executed on February 3, 2017. A copy the transmission service agreement was sent to the
NGCP on the same day.
Metering Service Agreement

The Metering Service Agreement dated May 24, 2016 was entered between SPCRPI, an affiliate of the
Company, and NGCP wherein the latter is authorized to act as the metering service provider of the
Calatagan solar power plant which requires revenue metering facilities and services for measuring the
energy consumed and/or generated by its grid-connected facilities. The term of the agreement on
February 26, 2016 and will expire on February 25, 2026, unless earlier terminated in accordance with
the terms and conditions of the agreement. SPCRPI assigned to the Company all of its rights and
obligations under this agreement through a deed of of assignment executed on February 3, 2017. A
copy of the metering service agreement was sent to the NGCP on the same day.
The Connection Agreement, Transmission Agreement, and Metering Service Agreement of the
Company with NGCP is governed by the rules, terms and conditions for the Provision of Open Access
Transmission Service (OATS) rules which govern the provision of transmission services to qualified
grid users.
Renewable Energy Payment Agreement (REPA)

On March 17, 2016, the Company and TransCo signed the REPA, designated as the Feed-in Tariff
(FIT)-All Fund Administrator, entered into a REPA. The REPA-0037 dated March 17, 2016 for the
63.3 MWp Calatagan Solar Power Plant was deemed effective as of July 4, 2016 through a letter signed Formatted: Right, Tab stops: Not at 3" + 6"
*SGVFS024659*
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by TransCo Officer-in-Charge, Generoso Senal. The REPA governs the rights and obligation of the
parties in respect to the full payment of all actual renewable energy generation of the Company, at a
price equivalent to P=₱8.69 (applicable base FIT rate), from March 11, 2016 to March 10, 2036, the
period of the Company’s FIT Eligibility Period.
Feed-in tariff System

Feed-in tariff (FIT) is an incentive scheme under the Renewable Energy Act of 2009 to attract
investments and hasten the deployment of renewable energy sources. FIT provides priority treatment to
renewable energy developers in terms of connection to the grid, purchase and transmission of and
payment for by grid operators, and a fixed premium rate for a specified period of time.
On March 14, 2016, the Department of EnergyDOE issued COE-FIT No. S-2016-03-05, which entitles
=₱8.69 per kWh for 20 years.
the Company to a base FIT rate of P
All eligible renewable energy (RE) plants shall be entitled to the appropriate FITs as established and
such FITs shall be paid by all on-grid electricity consumers in accordance with FIT system. An RE
plant shall be deemed eligible upon issuance of COC authorizing to operate as FIT-eligible RE plant,
subject to the term and conditions attached to it, among them, compliance with the Philippine Grid
Code (PGC) and other pertinent laws, rule and regulation of Energy Regulatory Commission (ERC).
The Company obtained COC No. 16-06-M-00072L from the Energy Regulatory Commission (ERC) on
June 29, 2016 valid from June 28, 2016 to June 27, 2021.
Total FIT revenue recognized in 2016 amounted to P

=572.4 million.
Wholesale Electricity Spot Market (WESM)

Under Section 30 of Electric Power Industry Reform Act (EPIRA), the ERC may authorize entities to
become eligible as members, either directly or indirectly, of the WESM. All generating companies,
distribution utilities, suppliers, bulk consumers/end-users and other similar entities authorized by the
ERC, whether direct or indirect members of the WESM shall be bound by the WESM spot market rules
with respect to transactions in the market.
On February 24, 2016, the Company registered with PEMC as Direct WESM Member and Trading
Participant - Generator Category. AThe Market Participation Agreement was executed by the
Company and the Philippine Electricity Market CorporationEMC in relation to this. Total revenue from
sale of electricity to WESM amounted to =
P2.7 million and nil in 2016 and 2015, respectively.
Energy Regulations No. 1-94

On March 10, 2016, the Company entered into a Memorandum of Agreement with the DOE for the
establishment of Trust Accounts for Accrued Financial Benefits from the commercial operations of the
63.3 MWp Solar Power Plant. This is in compliance with the provision in the EPIRA under R.A. 9136
and more importantly to help recognize the contributions of the host communities and the people
affected by the project thereby lessening conflict and promoting cooperation among the stakeholders.
Under this agreement, the Company should set aside one centavo per kilowatt hour (P=0.01/kWh) of the
total electricity sales as financial benefit to its host community.
*SGVFS024659*
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*SGVFS024659*
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16. Renewable Energy Act of 2008

On January 30, 2009, Republic Act No. 9513, An Act Promoting the Development, Utilization and
Commercialization of Renewable Energy Resources and for Other Purposes, otherwise known as the
“Renewable Energy Act of 2008” (the “Act”), became effective. The Act aims to:
a) accelerate the exploration and development of renewable energy resources such as, but not
limited to, biomass, solar, wind, hydro, geothermal and ocean energy sources, including
hybrid systems, to achieve energy self-reliance, through the adoption of sustainable energy
development strategies to reduce the country’s dependence on fossil fuels and thereby
minimize the country’s exposure to price fluctuations in the international markets, the effects
of which spiral down to almost all sectors of the economy;
b) increase the utilization of renewable energy by institutionalizing the development of national
and local capabilities in the use of renewable energy systems, and promoting its efficient and
cost-effective commercial application by providing fiscal and non-fiscal incentives;
c) encourage the development and utilization of renewable energy resources as tools to
effectively prevent or reduce harmful emissions and thereby balance the goals of economic
growth and development with the protection of health and environment; and
d) establish the necessary infrastructure and mechanism to carry out mandates specified in the
Act and other laws.
*SGVFS024659*
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As provided in the Act, Renewable Energy (RE) developers of RE facilities, including hybrid systems,
in proportion to and to the extent of the RE component, for both power and non-power applications, as
duly certified by the DOE, in consultation with the BOI, shall be entitled to the following incentives,
among others:
i. Income Tax Holiday (ITH) - For the first seven (7) years of its commercial operations, the
duly registered RE developer shall be exempt from income taxes levied by the National
Government;
ii. Duty-free Importation of RE Machinery, Equipment and Materials - Within the first ten (10)
years upon issuance of a certification of an RE developer, the importation of machinery and
equipment, and materials and parts thereof, including control and communication equipment,
shall not be subject to tariff duties;
iii. Special Realty Tax Rates on Equipment and Machinery - Any law to the contrary
notwithstanding, realty and other taxes on civil works, equipment, machinery, and other
improvements of a registered RE developer actually and exclusively used for RE facilities
shall not exceed one and a half percent (1.5%) of their original cost less accumulated normal
depreciation or net book value;
iv. NOLCO - the NOLCO of the RE developer during the first three (3) years from the start of
commercial operation which had not been previously offset as deduction from gross income
shall be carried over as deduction from gross income for the next seven (7) consecutive
taxable years immediately following the year of such loss;
v. Corporate Tax Rate - After seven (7) years of ITH, all RE developers shall pay a corporate tax
of ten percent (10%) on its net taxable income as defined in the National Internal Revenue
Code of 1997, as amended by Republic Act No. 9337;
vi. Accelerated Depreciation - If, and only if, an RE project fails to receive an ITH before full
operation, it may apply for accelerated depreciation in its tax books and be taxed based on
such;
vii. Zero Percent VAT Rate - The sale of fuel or power generated from renewable sources of
energy, the purchase of local goods, properties and services needed for the development,
construction and installation of the plant facilities, as well as the whole process of exploration
and development of RE sources up to its conversion into power shall be subject to zero
percent (0%) VAT;
viii. Cash Incentive of RE Developers for Missionary Electrification - An RE developer,
established after the effectivity of the Act, shall be entitled to a cash generation-based
incentive per kilowatt-hour rate generated, equivalent to fifty percent (50%) of the universal
charge for power needed to service missionary areas where it operates the same;
ix. Tax Exemption of Carbon Credits - All proceeds from the sale of carbon emission credits shall
be exempt from any and all taxes; and
x. Tax Credit on Domestic Capital Equipment and Services - A tax credit equivalent to one
hundred percent (100%) of the value of the VAT and custom duties that would have been paid
on the RE machinery, equipment, materials and parts had these items been imported shall be
given to an RE operating contract holder who purchases machinery, equipment, materials, and
parts from a domestic manufacturer for purposes set forth in the Act. RE developers and local
manufacturers, fabricators and suppliers of locally-produced RE equipment shall register with
the DOE, through the Renewable Energy Management Bureau (REMB). Upon registration, a
certification shall be issued to each RE developer and local manufacturer, fabricator and
supplier of locally-produced renewable energy equipment to serve as the basis of their
entitlement to the incentives provided for in the Act. All certifications required to qualify RE
developers to avail of the incentives provided for under the Act shall be issued by the DOE
through the REMB.
*SGVFS024659*
- 43 -
On August 26, 2015, the Company was registered with the BOI. These certifications served as the basis
of entitlement to incentives under Republic Act No. 9513, otherwise known as the Renewable Energy
Act of 2008, which includes an income tax holiday (ITH) for a period of seven (7) years from the start
of its commercial operation, duty free importation of machineries for ten (10) years, and zero (0)
percent value added tax among others. As of December 31, 2016, the Company is still in the process of
increasing its stockholder’s equity as required by the BOI registration terms and conditionsOn
December 13, 2016, the Company already complied with the majority of the requirements stated in the
terms and conditions of the BOI registration.
17. Events After the Financial Reporting Date

Omnibus Loan and Security Agreement
On February 14, 2017 the Company signed a P =₱3.4 billion Omnibus Loan and Security Agreement with
BDO Unibank, Inc., Philippine Business Bank and United Coconut Planters Bank in connection with
the 63.3 MW Calatagan Solar Power Plant. As of April 10, 2017, the Company has fully drawn the
entire amount of the loan agreement facility.
Supplementary Information Required Under Revenue Regulation 15-2010
*SGVFS024659*
- 44 -
18. Supplementary Information Required Under Revenue Regulation 15-2010
The Company reported and/or paid the following types of taxes in 2016:
VAT
The Company’s sale of generated power as well as its from renewable sources of energy shall be
subject to zero-percent (0%) rate pursuant to Section 108 (B) (7) of the Tax Code while its purchases of
local supply of goods, properties and services needed for the development, construction and installation
of its plant facilities and the whole process of exploration and development of renewable energy sources
up to its conversion into power shall be subject to zero-percent tax. pursuant to the NIRC.
Details of the Company's net sales/receipts, output VAT and input VAT accounts are as follows:
a. The Company does not have receipts subject to output VAT for the year ended
December 31, 2016. The Company has zero rated sales/receipts amounting to P=180,234,275. Commented [SRR1]: Should present amount of zero rated sales
per VAT return which should tie up with actual collection;
Please check whether they already amended the VAT returns to
b. Details of input VAT account are shown as follows: reflect 2016 collections
=−
P Formatted: Font: Times New Roman, 11 pt
Balance at January 1 Formatted: Font: Times New Roman, 11 pt
Current year’s domestic purchases/payments for: Formatted: List Paragraph, Indent: Left: 0.25", Space
Importation of goods other than capital goods Indent at: 0.66", Tab stops: 0.75", Left
180,26617 Formatted: List Paragraph, Indent: Left: 0.25", Space
Services lodged under other accounts Indent at: 0.66", Tab stops: 0.75", Left
Claims for tax credit/ refund and other − Formatted: List Paragraph, Indent: Left: 0.25", Space
adjustments After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
P
Formatted Table
As of December 31, 2016, the Company has deferred input VAT amounting to =
P18,048.
Taxes and Licenses
Details of taxes and licenses paid for 2016 follow:
Included in Cost of Sale of Electricity: Indent at: 0.66", Tab stops: 0.75", Left
=663,485
Benefits to host communities After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Included in General and Administrative Indent at: 0.66", Tab stops: 0.75", Left
Expenses:
,569,556 Indent at: 0.66", Tab stops: 0.75", Left
1% Government share
License and permits fees Indent at: 0.66", Tab stops: 0.75", Left
4,815,2214
,814,045
*SGVFS024659*
- 45 -
P
=
5,478,7065
,477,530
Withholding Taxes
The Company paid and/or accrued withholding taxes on various transactions amounting to Formatted: List Paragraph, Left, Indent: Left: 0.25", Space
=68,017,558 in 2016.
Commented [SRR2]: EWT return is not yet amended?
Tax Contingencies
The Company did not receive any final tax assessments in 2016, nor did it have tax cases under
preliminary investigation, litigation and/or prosecution in courts or bodies outside the administration of
the Bureau of Internal Revenue.
*SGVFS024659*
(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings, Formatted: Font: 13 pt
Inc.) Formatted: Font: 13 pt
INDEX TO THE FINANCIAL STATEMENTS AND SUPPLEMENTARY

SCHEDULES
Schedule of Retained Earnings Available for Dividend Declaration Formatted: Font: Times New Roman, 11 pt
Schedule of All Effective Standards and Interpretations
*SGVFS024659*
SOLAR PHILIPPINES CALATAGAN CORPORATION Formatted: Font: 13 pt
(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings, Formatted: Font: 13 pt
Inc.) Formatted: Font: Times New Roman, 11 pt
SCHEDULE OF RETAINED EARNINGS AVAILABLE FOR DIVIDEND Formatted: List Paragraph, Indent: Left: 0.25", Space
DECLARATION After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
(P= Formatted: List Paragraph, Indent: Left: 0.25", Space

461,472 Indent at: 0.66", Tab stops: 0.75", Left + Not at 0.5"
Unappropriated Retained Earnings, as adjusted to )
available for dividend distribution to January 1, 2016 Formatted: List Paragraph, Indent: Left: 0.25", Space
Add: Net Income actually earned/realized during the period
P
=
431,646, Formatted: List Paragraph, Indent: Left: 0.25", Space
Net Income during the period closed to Retained Earnings 833 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Less: Non-actual/unrealized income, net of tax – Formatted: List Paragraph, Indent: Left: 0.25", Space
Equity in net income of associate/joint venture – Indent at: 0.66", Tab stops: 0.75", Left
Unrealized foreign exchange gain - net (except those attributable to Formatted: List Paragraph, Indent: Left: 0.25", Space
Cash and Cash Equivalents) – After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Fair value adjustment (M2M gains) – Formatted: List Paragraph, Indent: Left: 0.25", Space
Fair value adjustment of Investment Property After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
resulting to gain – Indent at: 0.66", Tab stops: 0.75", Left
Adjustment due to deviation from PFRS/GAAP - gain – After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Other unrealized gains or adjustments to the Retained Earnings as a Indent at: 0.66", Tab stops: 0.75", Left
result of certain transactions accounted for under PFRS – Formatted: List Paragraph, Indent: Left: 0.25", Space
Add: Non-actual losses Indent at: 0.66", Tab stops: 0.75", Left
Depreciation on revaluation increment (after tax) – After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Adjustment due to deviation from PFRS/GAAP - loss –
431,646,
Loss on fair value adjustment of investment property 833 Indent at: 0.66", Tab stops: 0.75", Left
(after tax) –
Add (Less): After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
–
Dividend declarations during the period Formatted: List Paragraph, Indent: Left: 0.25", Space
– After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Appropriations of Retained Earnings during the period Indent at: 0.66", Tab stops: 0.75", Left
– Formatted ...
Reversals of appropriations
Formatted ...
–
Effects of prior period adjustments Formatted ...
– – Formatted ...
Treasury shares
Formatted ...
P
=
UNAPPROPRIATED RETAINED EARNINGS, 431,185 Formatted: Font: Times New Roman, 11 pt
DECEMBER 31, 2016, AVAILABLE FOR DIVIDEND ,361 Formatted ...
DECLARATION Formatted ...
*SGVFS024659*
(A Wholly Owned Subsidiary of Solar Philippines Power Project Holdings,
Inc.)
SCHEDULE OF EFFECTIVE STANDARDS AND INTERPRETATIONS
DECEMBER 31, 2016
PHILIPPINE FINANCIAL REPORTING STANDARDS No Formatted Table

N
AND INTERPRETATIONS t
A ot
Effective as of December 31, 2016 Ap
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Framework for the Preparation and Presentation of Formatted: List Paragraph, Indent: Left: 0.25", Space
Financial Statements After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
 Indent at: 0.66", Tab stops: 0.75", Left
Conceptual Framework Phase A: Objectives and qualitative
characteristics
PFRSs Practice Statement Management Commentary  Formatted: List Paragraph, Indent: Left: 0.25", Space
Philippine Financial Reporting Standards
PF First-time Adoption of Philippine Financial  Indent at: 0.66", Tab stops: 0.75", Left
RS Reporting Standards Formatted: List Paragraph, Indent: Left: 0.25", Space
1 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to PFRS 1 and PAS 27: Cost of Indent at: 0.66", Tab stops: 0.75", Left
(Re
an Investment in a Subsidiary, Jointly 
vis
Controlled Entity or Associate
ed)
Amendments to PFRS 1: Additional 
Exemptions for First-time Adopters
Amendment to PFRS 1: Limited Exemption
from Comparative PFRS 7 Disclosures for 
First-time Adopters
Amendments to PFRS 1: Severe Hyperinflation
and Removal of Fixed Date for First-time 
Adopters
Amendments to PFRS 1: Government Loans 
Amendments to PFRS 1: Borrowing costs 
Amendments to PFRS 1: Meaning of “Effective 

PFRSs”
PF Share-based Payment  Formatted: List Paragraph, Indent: Left: 0.25", Space
RS After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to PFRS 2: Vesting Conditions 
and Cancellations
Amendments to PFRS 2: Group Cash-settled 
Share-based Payment Transactions
Amendments to PFRS 2: Definition of Vesting 
Condition
PHILIPPINE FINANCIAL REPORTING STANDARDS N No Formatted Table
A ot
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PF Business Combinations  Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendments to PFRS 3: Accounting for
(Re Contingent Consideration in a Business 
vis Combination
ed)
Amendments to PFRS 3: Scope Exceptions for 
Joint Arrangements
PF Insurance Contracts  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PAS 39 and PFRS 4: Financial 
Guarantee Contracts
PF Non-current Assets Held for Sale and Formatted: List Paragraph, Indent: Left: 0.25", Space
RS Discontinued Operations After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
5 Indent at: 0.66", No page break before, Tab stops: 0.75",
Amendments to PFRS 5: Changes in Methods See footnote. *
of Disposal
PF Exploration for and Evaluation of Mineral Formatted: List Paragraph, Indent: Left: 0.25", Space
Resources  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
RS
PF Financial Instruments: Disclosures Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendments to PAS 39 and PFRS 7: 
Reclassification of Financial Assets
Amendments to PAS 39 and PFRS 7:
Reclassification of Financial Assets - Effective 
Date and Transition
Amendments to PFRS 7: Improving

Disclosures about Financial Instruments
Amendments to PFRS 7: Disclosures - 
Transfers of Financial Assets
Amendments to PFRS 7: Disclosures -
Offsetting Financial Assets and Financial 
Liabilities
Amendments to PFRS 7: Mandatory Effective 
Date of PFRS 9 and Transition Disclosures
Amendments to PFRS 7: Disclosures - See footnote. *
Servicing Contracts
Amendments to PFRS 7: Applicability of the
See footnote. *
Amendments to PFRS 7 to Condensed Interim
PF Operating Segments  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PFRS 8: Aggregation of 
Operating Segments and Reconciliation of the
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Total of the Reportable Segments’ Assets to the

Entity’s Assets
PF Financial Instruments (2010 version) See footnote. * Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PFRS 9: Mandatory Effective See footnote. *
Date of PFRS 9 and Transition Disclosures
PF Consolidated Financial Statements  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PFRS 10, PFRS 12 and PAS 
27: Investment Entities
Amendment to PFRS 10: Sale or Contribution
See footnote. *
of Assets between an Investor and its Associate
or Joint Venture
PF Joint Arrangements  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendment to PFRS 11: Accounting for See footnote. *
Acquisitions of Interests in Joint Operations
PF Disclosure of Interests in Other Entities  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PFRS 10, PFRS 12 and PAS
See footnote. *
28: Investment Entities - Applying the
Consolidation Exception
PF Fair Value Measurement  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PFRS 13: Short-term 
receivable and payables
Amendments to PFRS 13: Portfolio Exception 
PF Regulatory Deferral Accounts See footnote. * Formatted: List Paragraph, Indent: Left: 0.25", Space
PF Revenue from Contracts with Customers See footnote. * Formatted: List Paragraph, Indent: Left: 0.25", Space
PF Leases See footnote. * Formatted: List Paragraph, Indent: Left: 0.25", Space
Philippine Accounting Standards Formatted: List Paragraph, Indent: Left: 0.25", Space
PA Presentation of Financial Statements
 Formatted: List Paragraph, Indent: Left: 0.25", Space
S1
(Re Indent at: 0.66", Tab stops: 0.75", Left
Amendment to PAS 1: Capital Disclosures

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vis Amendments to PAS 32 and PAS 1: Puttable

Financial Instruments and Obligations Arising 
ed)
on Liquidation
Amendments to PAS 1: Presentation of Items of 
Other Comprehensive Income
Amendments to PAS 1: Clarification of the

requirements for comparative information
Amendments to PAS 1: Disclosure Initiatives See footnote. *
PA Inventories Formatted: List Paragraph, Indent: Left: 0.25", Space


S2 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
PA Statement of Cash Flows
 Formatted: List Paragraph, Indent: Left: 0.25", Space
S7 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to PAS 7: Disclosure Initiatives See footnote. * Indent at: 0.66", Tab stops: 0.75", Left
PA Accounting Policies, Changes in Accounting Formatted: List Paragraph, Indent: Left: 0.25", Space

S8 Estimates and Errors After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
PA Events after the Balance Sheet Date
S  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
PA Construction Contracts Formatted: List Paragraph, Indent: Left: 0.25", Space
 After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
S
PA Income Taxes Formatted: List Paragraph, Indent: Left: 0.25", Space


S After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendment to PAS 12 - Deferred Tax: 
Recovery of Underlying Assets
Amendment to PAS 12: Recognition of See footnote. *
Deferred Tax assets for Unrealized Losses
PA Property, Plant and Equipment Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendment to PAS 16: Classification of 
servicing equipment
Amendment to PAS 16: Revaluation Method -
Proportionate Restatement of Accumulated 
Depreciation
Amendment to PAS 16 and PAS 38:
See footnote. *
Clarification of Acceptable Methods of
Depreciation and Amortization
Amendments to PAS 16: Bearer Plants See footnote. *
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PA Leases Formatted: List Paragraph, Indent: Left: 0.25", Space

S
PA Revenue Formatted: List Paragraph, Indent: Left: 0.25", Space

S  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
PA Employee Benefits  Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendments to PAS 19: Defined Benefit Plans 
(A - Employee Contributions
me
nd Amendments to PAS 19: Regional Market Issue See footnote. *
ed) regarding Discount Rate
PA Accounting for Government Grants and Formatted: List Paragraph, Indent: Left: 0.25", Space
Disclosure of Government Assistance  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
S
PA The Effects of Changes in Foreign Exchange Formatted: List Paragraph, Indent: Left: 0.25", Space

S Rates After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendment: Net Investment in a Foreign 
Operation
PA Borrowing Costs Formatted: List Paragraph, Indent: Left: 0.25", Space

(Re
vis
ed)
PA Related Party Disclosures Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendments to PAS 24: Key Management
(Re 
Personnel
vis
ed)
PA Accounting and Reporting by Retirement Formatted: List Paragraph, Indent: Left: 0.25", Space
Benefit Plans  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
S
PA Separate Financial Statements  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PFRS 10, PFRS 12 and PAS 
(A 27: Investment Entities
me
nd Amendment to PAS 27: Equity Method in See footnote. *
ed) Separate Financial Statements
PA Investments in Associates and Joint Ventures  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendment to PAS 28: Sale or Contribution of
(A See footnote. *
Assets between an Investor and its Associate or
me Joint Venture
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nd
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PA Financial Reporting in Hyperinflationary Formatted: List Paragraph, Indent: Left: 0.25", Space
Economies  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
S
PA Financial Instruments: Disclosure and Formatted: List Paragraph, Indent: Left: 0.25", Space

S Presentation After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to PAS 32 and PAS 1: Puttable
Financial Instruments and Obligations Arising 
on Liquidation
Amendment to PAS 32: Classification of Rights 
Issues
Amendment to PAS 32: Presentation - Tax
effect of distribution to holders of equity 
instrument
Amendments to PAS 32: Offsetting Financial 
Assets and Financial Liabilities
PA Earnings per Share Formatted: List Paragraph, Indent: Left: 0.25", Space
S
PA Interim Financial Reporting  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendments to PAS 34: Interim financial
See footnote. *
reporting and segment information for total
assets and liabilities
Amendments to PAS 34: Disclosure of
See footnote. *
Information ‘elsewhere in the interim financial
report’
PA Impairment of Assets Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendments to PAS 36: Recoverable Amount 
Disclosures for Non-Financial Assets
PA Provisions, Contingent Liabilities and Formatted: List Paragraph, Indent: Left: 0.25", Space
S Contingent Assets  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
PA Intangible Assets  Formatted: List Paragraph, Indent: Left: 0.25", Space

Amendments to PAS 38: Revaluation Method -
Proportionate Restatement of Accumulated 
Amortization
Amendments to PAS 16 and PAS 38:
See footnote. *
Clarification of Acceptable Methods of
Depreciation and Amortization
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PA Financial Instruments: Recognition and Formatted: List Paragraph, Indent: Left: 0.25", Space

S Measurement After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to PAS 39: Transition and Initial
Recognition of Financial Assets and Financial 
Liabilities
Amendments to PAS 39: Cash Flow Hedge 
Accounting of Forecast Intragroup Transactions
Amendments to PAS 39: The Fair Value Option 
Amendments to PAS 39 and PFRS 4: Financial 

Guarantee Contracts
Amendments to PAS 39 and PFRS 7: 
Reclassification of Financial Assets
Amendments to PAS 39 and PFRS 7:
Reclassification of Financial Assets - Effective 
Date and Transition
Amendments to Philippine Interpretation 
IFRIC-9 and PAS 39: Embedded Derivatives
Amendment to PAS 39: Eligible Hedged Items 
Amendment to PAS 39: Novation of

Derivatives and Continuation of Hedge 
Accounting
PA Investment Property  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendment to PAS 40: Interrelationship
between 
PFRS 3 and PAS 40
PA Agriculture  Formatted: List Paragraph, Indent: Left: 0.25", Space
Amendment to PAS 41: Bearer Plants See footnote. *
Philippine Interpretations Formatted: List Paragraph, Indent: Left: 0.25", Space

Indent at: 0.66", No page break before, Tab stops: 0.75",
IF Changes in Existing Decommissioning,
R Restoration and Similar Liabilities Formatted: List Paragraph, Indent: Left: 0.25", Space
I Indent at: 0.66", Tab stops: 0.75", Left
C
1
IF Members' Share in Co-operative Entities and Formatted: List Paragraph, Indent: Left: 0.25", Space
R Similar Instruments After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
I
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R a Lease After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
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IF Rights to Interests arising from Formatted: List Paragraph, Indent: Left: 0.25", Space
R Decommissioning, Restoration and After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Environmental Rehabilitation Funds  Indent at: 0.66", Tab stops: 0.75", Left
I
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IF Liabilities arising from Participating in a Formatted: List Paragraph, Indent: Left: 0.25", Space
R Specific Market - Waste Electrical and After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Electronic Equipment  Indent at: 0.66", Tab stops: 0.75", Left
I
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IF Applying the Restatement Approach under PAS Formatted: List Paragraph, Indent: Left: 0.25", Space
R 29 Financial Reporting in Hyperinflationary After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Economies  Indent at: 0.66", Tab stops: 0.75", Left
I
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7
IF Reassessment of Embedded Derivatives  Formatted: List Paragraph, Indent: Left: 0.25", Space
R After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to Philippine Interpretation IFRIC-
C 9 and 
9 PAS 39: Embedded Derivatives
IF Interim Financial Reporting and Impairment Formatted: List Paragraph, Indent: Left: 0.25", Space
I
C
10
IF Service Concession Arrangements Formatted: List Paragraph, Indent: Left: 0.25", Space
I
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IF Customer Loyalty Programmes Formatted: List Paragraph, Indent: Left: 0.25", Space
I
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IF The Limit on a Defined Benefit Asset, Minimum  Formatted: List Paragraph, Indent: Left: 0.25", Space
R Funding Requirements and their Interaction After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendments to Philippine Interpretations
C
IFRIC-14, Prepayments of a Minimum Funding 
14
Requirement
IF Agreements for the Construction of Real Estate See footnote. * Formatted: List Paragraph, Indent: Left: 0.25", Space
R Indent at: 0.66", Tab stops: 0.75", Left
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IF Hedges of a Net Investment in a Foreign Formatted: List Paragraph, Indent: Left: 0.25", Space
R Operation After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
I
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IF Distributions of Non-cash Assets to Owners Formatted: List Paragraph, Indent: Left: 0.25", Space
I
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17
IF Transfers of Assets from Customers Formatted: List Paragraph, Indent: Left: 0.25", Space
I
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IF Extinguishing Financial Liabilities with Equity Formatted: List Paragraph, Indent: Left: 0.25", Space
R Instruments After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
I
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IF Stripping Costs in the Production Phase of a Formatted: List Paragraph, Indent: Left: 0.25", Space
R Surface Mine After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
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IF Levies Formatted: List Paragraph, Indent: Left: 0.25", Space
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SI Introduction of the Euro Formatted: List Paragraph, Indent: Left: 0.25", Space
C
-7 Indent at: 0.66", Tab stops: 0.75", Left
SI Government Assistance - No Specific Relation to Formatted: List Paragraph, Indent: Left: 0.25", Space
C Operating Activities  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
- Indent at: 0.66", Tab stops: 0.75", Left
10
SI Consolidation - Special Purpose Entities  Formatted: List Paragraph, Indent: Left: 0.25", Space
C After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
Amendment to SIC - 12: Scope of SIC 12 
12
SI Jointly Controlled Entities - Non-Monetary  Formatted: List Paragraph, Indent: Left: 0.25", Space
C Contributions by Venturers After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
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13
SI Operating Leases - Incentives Formatted: List Paragraph, Indent: Left: 0.25", Space
C  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
15
SI Income Taxes - Recovery of Revalued Non- Formatted: List Paragraph, Indent: Left: 0.25", Space
C Depreciable Assets  After: 10 pt, Bulleted + Level: 1 + Aligned at: 0.41" +
- Indent at: 0.66", No page break before, Tab stops: 0.75",
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Solar Philippines Calatagan Corporation

(A Wholly Owned Subsidiary of Solar Philippines

Independent Auditor’s Report

A member firm of Ernst & Young Global Limited

Basis for Opinion

Other Matter Formatted: Don't keep with next

Formatted: Right, Tab stops: Not at 3" + 6"

A member firm of Ernst & Young Global Limited

Auditor’s Responsibilities for the Audit of the Financial Statements

Formatted: Right, Tab stops: Not at 3" + 6"

A member firm of Ernst & Young Global Limited

Report on the Supplementary Information Required Under Revenue Regulations 15-2010

SYCIP GORRES VELAYO & CO.

April 10, 2017

Formatted: Right, Tab stops: Not at 3" + 6"

The Board of Directors and Stockholders

Report on the Audit of the Financial Statements

Basis for Opinion

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Auditor’s Responsibilities for the Audit of the Financial Statements

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Report on the Supplementary Information Required Under Revenue Regulations 15-2010

SYCIP GORRES VELAYO & CO.

April 10, 2017

INDEPENDENT AUDITOR’S REPORT

The Board of Directors and Stockholders

Report on the Audit of the Financial Statements

Basis for Opinion

Auditor’s Responsibilities for the Audit of the Financial Statements

Formatted: Right, Tab stops: Not at 3" + 6"

Report on the Supplementary Information Required Under Revenue Regulations 15-2010

SYCIP GORRES VELAYO & CO.

April 10, 2017

Formatted: Right, Tab stops: Not at 3" + 6"

A member firm of Ernst & Young Global Limited

Formatted: Adjust space between Latin and Asian text,

SYCIP GORRES VELAYO & CO.

April 10, 2017

Formatted: Right, Tab stops: Not at 3" + 6"

A member firm of Ernst & Young Global Limited

The Board of Directors and Stockholders

SYCIP GORRES VELAYO & CO.

April 10, 2017

A member firm of Ernst & Young Global Limited

Solar Philippines Calatagan Corporation Formatted: Tab stops: Not at 0.31"

112 Legaspi St., Legaspi Village

SYCIP GORRES VELAYO & CO.

April 10, 2017

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LIABILITIES AND EQUITY (CAPITAL DEFICIENCY)

Equity (Capital Deficiency)

See accompanying Notes to Financial Statements.

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SALE OF ELECTRICITY (Notes 1 and 16) P

COSTS OF SALE OF ELECTRICITY (Note 10) 117,960,834 −

GROSS PROFIT 457,073,202 −

FINANCE COSTSINTEREST EXPENSE (Note 9) (20,156,142) −

GENERAL AND ADMINISTRATIVE EXPENSES (Note 11) (6,951,718) (461,472)

INTEREST INCOME (Note 4) 1,681,491 −

NET INCOME (LOSS) 431,646,833 (461,472)

OTHER COMPREHENSIVE LOSS (INCOME) − −

TOTAL COMPREHENSIVE LOSS P

See accompanying Notes to Financial Statements.