Independent Auditor's Report

MAGTULOY CPA AND LAW OFFICES                                                Senior Partners:
WESTWOOD LAW 10th Flr., Atlanta Centre, No. 31 Annapolis St., Greenhills,   ATTY. JOHN JOSEPH M. MAGTULOY, CPA
San Juan 1502, Philippines;                                                 DEAN MA. TERESA M. EVANGELISTA, CPA, MBA
L5, B12, Town and Country West, Molino, Bacoor, Cavite, Philippines;         ATTY. ERNESTO TABAO
Tel. Nos. 0918-901-8336, 0912-367-6271, 9292224
                  
		Legal Counsels, External Auditors, Business Systems, Management and Tax Consultants

INDEPENDENT AUDITOR’S REPORT


THE STOCKHOLDERS
ESCUELA DE SAN DIONISIO, INC.

0554 Quirino Avenue, San Dionisio, Paranaque City
Metro Manila, Philippines

We have audited the accompanying financial statements of Escuela de San Dionisio, Inc., which comprise the balance sheets as at 31 May 2010 and 2009, and the income statement, statement of changes in equity and cash flow statement for the years then ended, and a summary of significant accounting policies and other explanatory notes.

Management is responsible for the preparation and the fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedure to obtain audit evidence about the amounts and disclosure in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Escuela de San Dionisio, Inc. as of 31 May 2010 and 2009, and of its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

03 September 2010

MAGTULOY CPA AND LAW OFFICES
Certified Public Accountants / Lawyers

CECIL N. LINGAD
CERTIFIED PUBLIC ACCOUNTANT
CPA License No. 96319, PRC, Manila
BOA 1337
PTR 9765869 January 4, 2010, City of San Fernando, Pampanga
TIN 915704474