CONRADO M.

BRIONES
CERTIFIED PUBLIC ACCOUNTANT
4668 TAGUMPAY STREET, STA. MESA MANILA
CONTACT NO. 0927-9614609

July 16, 2013

To the Securities and Exchange Commission

SEC Building, EDSA Greenhills
Mandaluyong City

In connection with the application of YUHANTECH PHILIPPINES INC. for the increase
in its authorized capital stock, the undersigned hereby declares:

That, as an external auditor engaged by the said company, I have conducted the verification
procedures required under Section 2 of the Guidelines on On-site Verification of Financial
Records Relative to Certain Applications Filed with the Commission, and that I observed all
the requirements of existing auditing standards and practices applicable to the said
engagement; and

That since the foregoing engagement does not involve an audit or review of the company’s
financial statements but only the conduct of a set of agreed-upon procedures and issuance of
a report of the factual findings thereon, I gave a “no assurance” statement in my report dated
July 12, 2013 attached to this letter. I understand, however, that the “no assurance” statement
in my said report does not exempt me from responsibility over the conduct of the said
procedures and the factual findings stated therein;

CONRADO M. BRIONES
CPA Certificate No. 0092374
BOA Accreditation No. 3985
BIR Accreditation No. 07-000078-1-2013
Tax Identification No. 194-492-605
PTR No. 1557628, February 4, 2013, Manila
 CONRADO M. BRIONES
CERTIFIED PUBLIC ACCOUNTANT

REPORT TO THE SECURITIES AND EXCHANGE COMMISSION ON

VERIFICATION OF FINANCIAL RECORDS RELATIVE TO THE
APPLICATION FOR THE INCREASE IN THE AUTHORIZED CAPITAL
STOCK OF YUHANTECH PHILIPPINES INC. FILED WITH THE
COMMISSION.

The following are the agreed upon procedures that I have conducted:

(1) I have obtained from the company a schedule of cash received as deposits for
subscription on the proposed increase in capital stock which shows the following
information:

1. Date recorded in the books

2. Acknowledgment receipts
3. Name of subscriber
4. Amount of cash received
5. Form of payment (cash or check)

(2) I have checked the mathematical accuracy of the company’s schedule;

(3) I have compared the balance of the deposits for subscription to the general ledger;

(4) I have traced the cash received as deposits for subscription to the cash receipts book;

(5) I have obtained a copy of the minutes of the meetings of the board of directors and
stockholders approving the increase in capital stock of the company;

(6) I have compared the amounts received from the subscribers to the acknowledgment
receipts;

(7) I have traced the amounts received to the bank-validated deposit slips and/or
certificate of inward remittance and for check payments, I have traced the amounts to
the bank statement;

(8) I have inspected all entries in the cash disbursement books of the company for any
prior disbursements made to the subscribers that can be linked or associated with the
subscriber’s payment for subscriptions;

(9) I have inspected all entries in the cash disbursements book of the company for any
subsequent disbursements, advances or loans granted to the subscriber;

(10) I have conducted a cash count of the funds of the company as of the date of
examination and work back up to the month immediately preceding the date of the
meeting when the stockholders approved the increase in capital stock of the company;

(11) I have obtained a summary of the cash in the bank account of the company and bank
reconciliation statements as of the end of the month immediately preceding the
submission of the application;
 CONRADO M. BRIONES
CERTIFIED PUBLIC ACCOUNTANT

(12) I have done the following: Checked the mathematical accuracy of the summary and
bank reconciliation statements; traced the receipts and disbursements and other
transactions in the summary and bank reconciliation statements to the entries in the
general ledger; and compared the balances shown in the summary and bank
reconciliation statements with the balances per books and bank statements;

Below are my findings:

a. With respect to items 1- 4, the increase capital stock of Fifty Million Pesos
(PhP50,000,000.00) were fully subscribed by the stockholders. Out of the subscribed
capital stock, the amount of Twenty Five Million Pesos (PhP25,000,000.00) has been
paid by the following stockholders:

Shares Amount (P) Amount

Subscribed Subscribed Paid (P)

Lea Jean M. Lacsina 10,000,000 10,000,000.00 5,000,000.00

Jerry Mae B. Tome 10,000,000 10,000,000.00 5,000,000.00
Eunice D. Salvador 10,000,000 10,000,000.00 5,000,000.00
Chang Seung Hyeock 500,000 500,000.00 249,496.00
Kim Joonil 500,000 500,000.00 249,496.00
Yuhantech Co., Ltd. 19,000,000 19,000,000.00 9,501,008.00
Total 50,000,000 P50,000,000.00 P25,000,000.00

I found the schedule of cash received as payments for the subscription on the proposed
increase to be mathematically accurate. The cash received are supported by
acknowledgment receipts, recorded in the cash receipts book and posted to the general
ledger. Kindly refer to the attached schedule of payments (Annex A).

b. With respect to item 5, I found that the Board of Directors and stockholders approved the
proposed increase on May 31, 2013. The minutes of the aforesaid approval were obtained
from the record of the Corporate Secretary of the Corporation;

c. With respect to item 6-7, and 11, I found that the payments for subscription to the
proposed increase by the stockholders, Lea Jean M. Lacsina, Jerry Mae B. Tome, Eunice
D. Salvador, Chang Seung Hyeock, Kim Joonil and Yuhantech Co., Ltd., were supported
by the acknowledgment receipts and were deposited to the account of the Corporation
supported by a validated deposits slips and certificate of inward remittance from the bank;

d. With respect to item 8, I found no entries in the cash disbursement books of the company
for any prior disbursements made to the subscribers that can be linked or associated with
the subscriber’s payment for subscriptions

e. With respect to item 9, I found no subsequent disbursements, advances or loans granted to

the subscribers/stockholders;

f. With respect to item 10, I confirmed that a cash count of the funds of the company as of
the date of examination and work back up to the month immediately preceding the date of
the meeting when the stockholders approved the increase in capital stock of the company
was conducted and found no irregularities therein;
 CONRADO M. BRIONES
CERTIFIED PUBLIC ACCOUNTANT

g. With respect to item 11, I found that the summary of the cash in the bank account of the
company and the adjusted balance of cash in the bank reconciliation statements as of June
30, 2013 is matched;

h. With respect to item 12, I further confirmed to have performed the following and found
no discrepancies or irregularities relative to the subscriptions: checked the mathematical
accuracy of the summary and bank reconciliation statements; traced the receipts and
disbursements and other transactions in the summary and bank reconciliation statements
to the entries in the general ledger; and compared the balances shown in the summary and
bank reconciliation statements with the balances per books and bank statements.

CONRADO M. BRIONES
CPA Certificate No. 0092374
BOA Accreditation No. 3985
BIR Accreditation No. 07-000078-1-2013
Tax Identification No. 194-492-605
PTR No. 1557628, February 4, 2013, Manila

July 12, 2013