CRYSTAL CREDIT COOPERATIVE

Notes to Financial Statement

December 31, 2018

1. COOPERATIVE INFORMATION

Crystal Credit Cooperative was registered with the Cooperative Development Authority last
September 3, 2018 with COR 9520-1016000000042758. The Cooperative was organized for the
purpose of encouraging thrift and savings, generating funds and extending credit to members for
productive and provident purposes and to safeguard and protect the interest of its members. Members
of the Cooperative came mostly from residents of Brgy. Panghulo, Malabon and its vendors.

The principal office of the Cooperative is at 14 Rodriguez St., Panghulo, Malabon City.

2. CASH

The cash of P7,627.09 represents cash on hand. The Cooperative is still in the process of
opening its bank account. The Cooperative reconcile the book and cash balances on hand regularly as
part of its cash monitoring and internal control measure.

3. LOANS RECEIVABLES

This account represents loans receivable to its members. The Cooperative charge five percent
(5%) monthly interest based on diminishing balance with term from one (1) month to six (6) months
and charge P100.00 as service fee. It also uses aging of loan receivable. All borrowers are carefully
screened/evaluate by the credit committee to reduced risk and smooth processing of future renewal of
loans.

4. PAID-UP CAPITAL

This represents paid-up contribution of its members.

5. REVENUE

The account consists of interest income from loans, processing and membership fees and
other miscellaneous income.

6. OPERATING EXPENSES

The account represents expenses incurred in the process of business operation as follows:

Travel and Transportation…………………….. P12,860.00

Taxes, Fees and Charges……………………… 9,137.00
Office Supplies…………………………………. 6,612.50
Insurance Expenses……………………………. 1,784.73
Repairs and Maintenance……………………… 1,353.00
Miscellaneous Expenses……………………… 5,856.00
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Total………………….. P37,603.23
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7. UNDIVIDED NET SURPLUS (LOSS)

At the end of its three (3) month initial operation, the Cooperative incurred a Net Loss of
P19,772.92 which is charged to Reserved Fund of the Cooperative.