ANNEX “A”

AFFIDAVIT OF GENERAL FINANCIAL CONDITION

1. Are you an officer of the debtor referred to in these proceedings?

Yes, I am an officer of the debtor referred to in these proceedings.

2. What is your full name and what position do you hold in the debtor?

My full name is Emeterio Laureles Aman and I am the Chairman of the

Foard of directors and the President & Chief Executive Officer (CEO) of
the debtor.

3. What is the full name of the debtor(s) and what is the address of its
head office?

The full name of the debtor is Enjoy Realty & Development Corporation
(ERDC).

ERDC’s address is at, No. 21 Zone 5, San Felipe, Naga City, Camarines
Sur.

4. When was it formed or incorporated?

ERDC was formed or incorporated on April 19, 2001.

5. When did the debtor commence business?

ERDC commence business in 2002 when they embarked on their first

project the Parkview Village subdivision.

6. What is the nature of the business? What is the market share of the
debtor in the industry in which it is engaged?

ERDC is engaged in civil engineering and real estate activities. Its share in
the local real estate industry is more or less thirty percent (30%).

7. Who are the parties, members, or stockholders? How many employees?

The parties, members, or stockholders are: 1) Emeterio L. Aman 2)
Marilyn SP. Aman 3) Gerardo P. Crisostomo III 4) Raul L. Alicaway and 5)
Yolanda A. Leander.
8. What is the capital of the Debtor?

The capital of the Debtor amounts to ₽18,000,000.00, equivalent to

120,000 common shares of stock with par value of ₽150.00 per share.

9. What is the capital contribution and what is the amount of the capital,
paid and unpaid, of each of the partners of shareholders?

The capital contribution, amount of capital and amount unpaid and paid
of each of the shareholders are as follows:

Capital Amount of
Shareholder Contribution Capital Unpaid/Paid
Aman, Emeterio Cash 9,750,000.00 Paid
Aman, Marilyn SP. Cash 7,935,000.00 Paid
Crisostomo,
Gerardo III P. Cash 45,000.00 Paid
Alicaway, Raul L. Cash 225,000.00 Paid
Leander, Yolanda Cash 45,000.00 Paid
A.
Total 18,000,000.00 Fully Paid-up

10.Do any of these people hold the shares in trust for others?

None, there are no shares held in trust for others.

11. Who are the directors and officers of the debtors?

Directors Officers
Aman, Emeterio Chairman President
Aman, Marilyn SP. Member Corporate Secretary/Treasurer
Crisostomo, Gerardo III Member Vice President
P.
Alicaway, Raul L. Member Non-Officer
Leander, Yolanda A. Member Non-Officer

12. Does the debtor have any subsidiary corporation? If so, give particulars.

No, the debtor does not have any subsidiary corporation.

13. Has the debtor properly maintained its books and are they updated?

Yes, the properly maintained its books and are updated.

14. Were the books audited annually?

Yes, the books are audited annually.

15. If so, what is the name of the auditor and when was the last audited
statement drawn up?

The name of the auditor is Araceli Gabriel Panga, CPA. The last audited
statement was as of and for the year ended December 31, 2019.

16. Were all the proper returns made to the various government agencies
which required them?

Yes, all the proper returns were made to the various government
agencies which require them.

17. When did the debtor first become aware of its problems?

The debtor first became aware of its problems in April 2020.

18. Has the debtor, within the twelve months preceding the filing of the
petition

(a) made any payments, returned any goods or delivered any property to
any of its creditors, except in the normal course of business?

No, payments made were in the normal course of business. There

were no goods returned nor any property delivered to any creditors.

(b) Executed any mortgage, pledge, or security over any of its properties
in favor of any debt?

Yes, mortgages over real properties were executed in favor of debts

with Philtrust Bank and Producers Bank.

(c) transferred or disposed of any of its properties in payment of any

debt?

No, there was no property transferred or disposed of in payment of

any debt.
 (d) sold, disposed of, or removed any of its property except in the
ordinary course of business?

Except for the property donated to the Local Government oNo, there
was no property sold, disposed of, or removed except in the ordinary
course of business.

(e) sold any merchandise at less than its fair market value or purchased
merchandise or service at more than fair market value?

No, merchandise was not sold at less than its fair market value and
no merchandise or service were purchased at more than fair market
values.

(f) made or been a party to any settlement or property in favor of any

person? If yes, give particulars.

No, debtor has not been a party to any settlement or property in

favor of any person.

19. Has the debtor recorded all sales or disposition of assets?

Yes, all sales and disposition of assets were recorded.

20. What were the sales for the last three years and what percentage of the
sales represented the profit or mark-up?

Sales for the last three years and percentage of profit or mark-up are as
follows:

2019 2018 2017

Sales 40,051,721 64,091,166 64,648,621
Gross Profit 12,636,717 21,012,322 21,011,116
Percentage 31.55% 32.78% 32.50%

21. What were the profits or losses for the debtor for the last three years?

The profits or losses of the debtor for the last three years are as follows:

2019 2018 2017

Total Comprehensive income 3,011,110 4,546,457 3,509,974
22. What were the causes of the problems of the debtor? Please provide
particulars.

The immediate cause of the debtor’s problems is the disruption of

business attributed to COVID-19 pandemic, resulting to:

i. Reduced demand of petitioners’ businesses’ products and

services, namely, residential lots, house & lots, house
construction, home improvements, etc.;

ii. Haciendas de Naga Golf Course and Country Club business

remain closed because of in social distancing protocols and
of restrictions in massive gatherings;

iii. Contraction of the market because many OFW were

repatriated while the debtor’s buyers portfolio is comprised
of 80% OFW

iv. Collections on Accounts Receivable declined by 33.33% for

the 1st six months’ of 2020 amounting to an average of ₽2.0
million as compared to ₽3 million during the last six months
of 2019.

v. The Home Development Mutual Fund (HDMF) or the

Pagibig fund started processing new housing loans last June
2020 so that it will take a longer period for the loan
proceeds to be released.

23. When did you first notice these problems and what actions did the
debtor take to rectify them?

The debtor first noticed these problems in April 2020. These problems
were basically caused by the Covid-19 pandemic and rectifying the
situation is beyond its capability. What is available for the time being is
for the debtor to seek rescheduling on the payments of its maturing
obligations.

24. How much in your estimate, is needed to rehabilitate the debtor?

The debtor needs to raise from internal sources an estimated amount of

₽75,000,000 in order to develop the Palm Village Subdivision and the
Naga Urban Residences projects, to accumulate inventories.
25. Has any person expressed interest in investing new money to the
debtor?

Yes, the debtor is in negotiation with Suntrust-Megaworld.

26. Are there pending and threatened legal actions against the debtor?

None yet.

27. Has the debtor discussed any restructuring or repayment plan with any
of the creditors? Please provide status and details.

As to Philtrust Bank

The loan is presently under restructured status, however the terms were
practically dictated by the bank, like the period, capitalized penalties and
interest, additional collateral requirements, etc. which do not align with
debtor’s financial capacity. As a result, debtor’s present cash flows isstill
not enough to meet amount of interest due. Collections is only enough
to sustain payroll and operating costs and expenses.

As to other creditor bank and suppliers.

Not yet.

28. Has any creditor expressed interest in restructuring the debts of the
debtor? If so, please give particulars.

As to Philtrust Bank

The loan is already restructured.

As to Producers Bank

The loan is under current status.

29. Have employees’ wages and salaries been kept current? If not, how
much are in arrears and what time period do the arrears represent?

Yes, employees’ wages and salaries are kept current.

30. Have obligation to the government and its agencies been kept current?
If not, how much are in arrears and what time period do the arrears
represent?

Yes, all obligation to government and its agencies are kept current.