2005 Annual Report

2005 ANNUAL REPORT

‘05K M B I

A N N U A L R E P O R T

Built to last: A legacy of

changed lives

Messages

History

Looking at 2005

Financial Highlights

Organizational Development

New Products & Services

Success Stories

Audited Financial Report

Directory

The Board of Trustees

4

6

7

8

10

12

14

17

33

35

Contents

2005 annual report

To see people in communities live in abundance with strengthened faith in God and in right relationship with their fellowmen and the rest of creations.

Mission Vision Core Values Goal

MISSION

VISION

CORE VALUES

GOAL for 2006

Built to Last: A Legacy of Changed Lives

KMBI is a Christ-centered development organization, existing to help in transforming the lives of the poor by providing opportunities through sustainable microfinance, training and demand-driven non-financial services.

RespectIntegrityStewardshipCommitment to the poorDisciplineInnovationExcellence

To reach 150,000 Filipino Families

2005 annual report4

2005 reminded us that KMBI was established by God to last. It may have been a rough year, due to the apparent fallout among clients and staff. However, we did not lose heart, for time and time again, God has revealed his faithfulness towards our organization.

Through the years, we have gloried upon the remarkable achievements that KMBI amassed... expansion of operations, opening of new branches. In spite of this, the challenges we faced takes us back to the realization that our greatest undertaking is to facilitate transformation in the lives of our staff and clients.

Hence, I would like to commend the diligence and dedication marked in the invaluable efforts of the board, management and staff. You are the nucleus of commitment of KMBI. To all key officers, your servant leadership has influenced and blessed many. To each and every program assistant, I salute you for your significant contribution to our mission. My heartfelt gratitude and support goes to all of you.

To our local and international partners, we express our sincerest thanks for your bigheartedness. We look forward to more years of partnership with you.

DR. AMELIA L. GONZALESChairmanBoard of Trustees

Message from the Chairwoman

Built to Last: A Legacy of Changed Lives 5

God is faithful. He allowed us to increase our performance five to six times from the year 2000. Our people, from the board down to the

rank and file, contributed tremendously to this growth.

Year 2005 is a year of consolidation. After we expanded the operations in 2003 and 2004, now is the time to pause and regain our strength to prepare for the next wave -- the commercialization of the microfinance industry.

While we paused and prepared for the next expansion, an in-depth focus on the products and services we provided our people and clients was done. We reviewed and assessed the impact of these, allowing us to launch new products, services and programs during the year. These are deemed to bring great impact not just to the lives of our staff and clients, but to their families as well.

KMBI was and is blessed by people who are not satisfied with the world’s standards. We aim for something deeper, more meaningful, and longer lasting, which is the legacy that we will be leaving to the next generation of Filipinos.

Ultimately, the success of our clients will be our success and so are all our supporters. With this we will continue to contribute to the pursuit of a poverty-free nation, all for God’s glory.

ROSEMARIE C. CASTROExecutive Director

Message from the Executive Director

2005 annual report6

Their vision

was to see

them live in

abundance with

strengthened

faith in God.

reporting and monitoring system based on SEEP and CGAP standards, conceptualize and implement a tool for transformation which is the Road Signs book series, open new branches in General Santos and Marbel, and sign a Memorandum of Agreement to establish the Opportunity Microfinance Bank (OMB).

2001 to 2004 were the years when KMBI needed to strengthen its stride. Among the courses that it took during these years were the following: * creation of a research and development / publication department* decentralization of the training department and centralization of

the finance, administrative and human resource departments* putting up of 17 branches in Bicol, Quezon, Batangas, Laguna, Cavite, Metro Manila, and Southern Mindanao areas* reconfiguration of existing Southern Mindanao branches* standardization of MF operations* provision of national and international exposures and trainings for staff* recognition from both national and

international networks.

It was also in 2004 that Opportunity International Network hailed KMBI as the number one microfinance practitioner among international partners in the large-scale category, as well as the top advocate for gender excellence.

•

Strengthening its stride

HHistory Kabalikat Para sa Maunlad na Buhay, Inc., now with 24 branches and expanding, planted its first seeds in Valenzuela, Metro Manila. Starting out as a small, church-based credit program, it opened a six-square-meter choir room to poor neighbors. Its vision was to see them live in abundance with strengthened faith in God. Even with only one worker, 37 neighbors were assisted into microentrepreneurship through loans amounting to Php 145,000. Twenty of them were trained on cash management. Now the vision cuts through geographical barriers, sowing the same seeds to as far as Southern Mindanao.

Retracing its steps, we find KMBI hurdling through challenges of growth and fortification from 1986 to 1997. With guidance and wisdom from God, through the leadership of the Board of Trustees, it grew to become a full-scale microfinance organization. From Valenzuela, it expanded its borders to Bulacan, Caloocan and Quezon City, catering to more poor families than before. Constant reengineering and strategic planning lead the organization to embrace the “branch scale-up” model. With this effective and efficient system, a significant number of clients were reached. However, its vigor didn’t stop there.

From 1998 to 2000 KMBI’s scaling up was witnessed as it treaded higher grounds towards further expansion and strengthening. It started to apply the daily branch

Climbing up

Mission statement revised

2005 annual report


Although the previous year was marked by expansion of operations, year 2005 focused on inward growth and advancement. To begin with, KMBI equipped its staff through training, capacity building and recreational activities. A roster of 471 personnel continues to fulfill its vision of reaching out to the poor through microfinance, business development and transformation services.

PERFORMANCE INDICATORS 2005 2004 VARIANCE GROWTH

POSTEDClient Outreach 88,812 85,457 3,355 3.93%Loan Portfolio (Million Php) 272 M 232 M 40 M 17.24%PAR (%) 1.90% 0.76% (1.14%) (150.00%)FSS (%) 149.67% 109.50% 40.17% 36.68%OSS (%) 151.47% 113.41% 38.06% 33.56%

Table 1. Comparative Annual Peformance

Performance highlights

- MISSION -“KMBI is a Christ-centered development

organization, existing to help in transforming the lives of the poor by providing opportunities through sustainable microfinance, training and

demand-driven non-financial services.”

By the end of 2005, KMBI has reached a total of 88,812 program members (see Table 1). Loan portfolio has significantly increased by Php 40 million; financial and operational self-sufficiency rates likewise soared to 149.67% and 151.47%, respectively. On the other hand, portfolio-at-risk closed at 1.90%.

Stirred by its God-given mission, KMBI endeavors to carry on affecting the lives of its program members and their families. Client outreach has risen steadily through the years, from 11,973 in 2002 up to almost 90,000 at present (see subsequent pages). In the same way, more and more branches were opened, strategically placed in areas of Southern Luzon and Southern Mindanao. Correspondingly, it strengthened and bolstered its personnel, reinforcing them with essential skills and training in facilitating holistic transformation.

The year also witnessed the launching of new products and services: Karamay sa Buhay Program (microinsurance), KMBI SUCCESS Circle and Improve Your Business training series. Notably, the Client Impact Monitoring System (CIMS) was also put in place, as a means for gathering information essential to product development and continuing improvement.

LLooking at 2005

KMBI continues its contribution to a worldwide campaign for transformation of nations. In the Philippines, it redefines its mission by strengthening its focus on holistic transformation of poor Filipino families and communities. Today, KMBI extends service with this new mission statement in heart.

Mission statement revised

2005 annual report8

* Funding to be received from W.P. Schmitz-Stiftung: 2006 - Php 4,915,950.55 2007 - Php 2,791,811.96 2008 - Php 1,311,609.93

Date Received FUNDER PURPOSE GRANT (Php)

February 2, 2005 OI-US Branch expansion - Kidapawan & ComVal 7,700,000.00

February 9, 2005 OI-US Gender Award for Excellence 27,000.00April 21, 2005 Ms. Isa Lorenzo Trust Bank Funding - Digos Center A50 150,000.00June 2, 2005 OI-US Branch Expansion - ComVal 1,897,350.00June 29, 2005 W.P. Schmitz - Stiftung Branch Expansion - Butuan 6,196,720.54*July 29, 2005 OI-US Transformation 560,400.00July 29, 2005 OI-Australia Trust Bank Funding - Central Cavite 593,574.48

PARTICULAR 2005(Million Php)

2004(Million Php)

Operational Income 72,654,458 12,979,923Asset 404,055,124 297,355,098Liability 232,250,413 215,330,315Fund Balance 171,804,711 82,024,783

Table 3. Grants & Donations

Table 2. Financial Highlights

By the end of 2005, KMBI’s total assets amounted to Php 404 million (see Table 2). Operational income was also significantly high at Php 72.6 million. This vast growth could be attributed to the expansion of 2004, during

which 17 new branches were established in all the areas. Consequently, KMBI was able to provide credit assistance to a greater number of clients, leading to increase in revenues.

Grant FundingThe organization continues to establish strong linkages with both local and international partners, who have significantly contributed to KMBI’s operations.

From Opportunity International US, grant funding was received for the purpose of sustaining the Kidapawan and Compostela Valley branches (see Table 3). Meanwhile, having been recognized with the Gender Award for Excellence in 2004, KMBI also received support for women empowerment and transformation activities. Through the Trust Bank Sponsorship Program with Opportunity International Australia, KMBI was able to course its programs and services to several SUCCESS centers in Central Cavite and Metro Manila South 1 branches. Similarly, Butuan branch operations were sustained through the funding of W.P Schmitz - Stiftung Foundation.

FFinancial Highlights


Graphs

This bar graph shows significant growth of the organization’s client outreach from year 2002-2005. From 11,973 clients in 2002, KMBI now caters to 88,812 clients in its 24 branches all over the Philippines.

The value of loan portfolio continues to grow steadily. It records an increase from

Php 38.4 million in 2002, Php 89.9 million in 2003,

Php 232.3 million in 2004 to Php 271.8 million in 2005.

In 2002, KMBI had three branches and 88 staff.Four branches were added in 2003, and 17 more in 2004. Today, KMBI runs 24 branches, managed by 471 staff.

2005 annual report10

KMBI personnel underwent extensive in-house trainings. Staff and key officers alike were equipped through a roster of workshops facilitated by the Human Resource Department. Regular programs include: Basic Operations Training Program (BOTP), Supervisory Skills Training, ProActive Customer Service and Road Signs Facilitation. In consonance with the launching of the microinsurance product, training on the Karamay sa Buhay Program was also provided. Managers and key officers were equipped in the following

Staff Retreats

External trainings

In-house trainings

OOrganizational Development

areas: Leadership, Monitoring & Evaluation, Community Development, Applied Marketing Research, Product Development and Health Care; in preparation for future undertakings.Staff retreats were held across all areas of KMBI; a time of

refreshing, learning and renewal of commitment. Members of the Board of Trustees graced these occasions, to impart wisdom and encouragement, and everyone joined in plenary and break-out sessions carried out by guest speakers. Themes varied from Human Resource Management to Discovering Your Gifts through the Care, Prayer, Teach and Arts ministries.

Calabarzon 1 area held its retreat at Club Manila East in Taytay, Rizal on April 29 & 30. Two major events followed suit: Bicol and Calanbarzon 2 staff convened for a retreat at Chateau Royale in Nasugbu, Batangas on July 16 & 17; while the Caraga and Southern Mindanao staff retreat was carried out on August 26 & 27 at Eden Park, Davao City.

Microfinance Success Institute2005 witnessed the joyous graduation of the first batch of Master in Business Administration (MBA) students. The course is offered by KMBI’s Microfinance Success Institute (MSI), in partnership with the Philippine Christian University. Classes are simultaneously being held in Bicol and Caraga areas. 11 Head Office staff and 16 staff from those areas are taking the course.


KMBI staff served as resource persons for both local and international consultancy projects. In the Philippines, it handled a Basic Operations Training Program for Talete King Panyulung Kapampangan, Inc. (TPKI), a local microfinance partner. Similarly, Road Signs Facilitation Training for Opportunity Microfinance Bank (OMB) personnel was performed.

Notably, the organization conducted exposure trainings to international partners, including delegates from Laos and Vietnam, and practitioners from Opportunity International India.

NetworkKMBI is an active partner and network member of both local and international institutions, such as:

* Opportunity International Network - Oppotunity International United States - Opportunity International Australia

Local and International Consultancies

Global RecognitionDuring the year, KMBI was rated by the Opportunity International Network as a Fully Accredited Member. Accordingly, in the recent Leadership Conference organized by the network, the organization was lauded for the following successes:(1) achieving over 100% Financial Sustainability Rate(2) participating in the implementation of the Client Impact Monitoring System (CIMS)(3) achieving less than 3% portfolio-at-risk, greater than one day rate for the year 2005, and(4) rated as a fully accredited member of the OI Network.

* Microcredit Summit Campaign * Fundacion CODESPA of Spain * Micro-Finance Council of the Philippines, Inc.* Philippine Council of NGO Certification* Alliance for Philippine Partners for Enterprise Development, Inc. (APPEND) * Mindanao Microfinance Council * Opportunity Microfinance Bank * Christian MicroEnterprise Development (CMED) * Department of Social Welfare & Development (DSWD)


Karamay sa Buhay Program

In partnership with the Cocolife Insurance Company, KMBI launched microinsurance through the Karamay sa Buhay Program (KBP). This new installment provides clients and their families with financial assistance in case of death. Benefits range from Php 25,000 to Php 100,000, depending on the number of dependents enrolled. This is made available to all clients aged 18 to 64. Those who are married have the privilege to enlist their spouse and up to three children, while single clients may include their parents as dependents.

KMBI SUCCESS Circle

The organization embarked on the formation of the KMBI SUCCESS Circle (KSC). Comprised of program members who have demonstrated outstanding performance in their enterprises, KSC is facilitated by the Business Development Services Unit. Members received special training, technical assistance, market linkaging / promotion, and the opportunity for their business to be exposed in trade fairs and local festivities.

The qualifications to become a KSC member include: • Manufacturer of one of the branch’s best products • Fourth loan cycle and up • 100% repayment record • Avid attendance to weekly meetings and activities • Significant business indicators (in terms of number of employees, production capacity and market extent)

Improve Your Business

The Improve Your Business (IYB) training series was conceptualized to equip program members with knowledge, skills and potential in improving their businesses. It conveys theoretical learning through lectures on business management, record-keeping, budgeting and other related themes. Tapping the expertise of certified trainers, IYB also presents avenues for learning new skills that can be used for livelihood, such as meat-processing and silk-screen printing. Composed of 12 sessions, the IYB training series is made available to KSC members as well as other clients.

NNew Products & Services



SA poor fellow would not wallow in dire poverty if s/he strives to overcome. Teresita Laraño, a local of General Santos City, lived by this philosophy, and with optimism, she is now one of the leading rice cracker maker in Mindanao.

Born and raised in Saranggani, “Teresita” is the 13th child of Mr. and Mrs. Venancio Laraño. Though poor, she recalls a childhood filled with fond memories. Early on, her parents instilled upon them the importance of a deep relationship with God. With this, she braved through the hardships and struggles, molding her into the strong, valiant woman she is today.

Teresita initially worked as an assistant in a beauty parlor for about two years. Here, she acquired skills in hair styling and grooming. Through diligence and hardwork, she saved enough money to start her own parlor. This venture proved to be successful, and in one year’s time she earned a sufficient amount for her family to travel back to Mindanao and buy a small parcel of land.

In 1997, along with her five children, Teresita moved to General Santos City. It was there where she started wholesaling rice crackers. It was also there where she became a program member of KMBI. She then grabbed the opportunity of distributing her products to Davao City, Koronadal City, Tacurong, Isulan and Alabel.

Amassing wisdom within three years in the craft, she was able to generate enough income to start her own production of rice crackers by the year 2000. With a starting capital of Php 450,000, she shifted from wholesaling to manufacturing. A production area was constructed right in the backyard of their house. Gradually, her business grew and the demand for her product increased. Customers

were delighted with her rice crackers. Today, her rice crackers come in classic and tuna flavors.

God’s hand is indeed upon Teresita’s endeavors. Now, she looks forward to putting up another manufacturing plant in a lot she bought in Matina, Davao City. Within the year, she also intends to distribute her products to Luzon. With this exemplary work, she was hailed the 2005 Citigroup Philipines’ Microentrepreneur of the Year (MOTY) for the Mindanao Island Group Maunlad category.

Teresita Laraño continues to manage a growing enterprise because she never allowed poverty to trample on her trust in God, her ingenuity and determination to make it to the top.

In line with the United Nations’ declaration of 2005 as the International Year of Microcredit, the Microentrepreneur of the Year (MOTY) Awards was conducted. The event recognized outstanding microentrepreneurs nationwide. From KMBI, two program members bagged the Mindanao Island Group Awards for Maunlad and Masikap categories. Here are their stories.

Success Stories

She never allowed

poverty to trample on

her trust in a living

God.

What Optimism Can Do


Who would think four borrowed sewing machines would lead one to success? Maria Jeaneta Ledesma, a program member from Bukana, Davao City, didn’t expect so. Faced with visible downfall of the Philippine garments industry in the 90’s, Jeaneta gripped to the promise of sewing to establish a garments factory someday.

Starting out small, Jeaneta’s business had only five workers in December 2003. With four borrowed sewing machines from her mother-in-law and her husband’s aunt, she incorporated courage, willpower and hope in her business undertaking. She then became a member of KMBI and used her loan to purchase additional machines.

Inspired by her husband, Rex, and three children named Yrikki Jake, Fabette Jane and Rex, Jr., Jeaneta expanded her horizons to new possibilities. She ventured into wholesaling and contracting of a wide range of clothing, such as blouses, dresses, gowns, pants, corporate suits and school uniforms. In a span of 2 years, Ledesma Garments grew to have a roster of 20 employees, including cutters, sewers, and production staff. Six hi-speed sewing machines were added to boost production.

The dress shop caters finished products to NCCC Mall of Davao, NCCC Tagum and NCCC Palawan, aside from regular customers such as private schools and several government offices in Davao. Today, the business generates a weekly income of as much as Php20,000 to Php30,000.

Jeaneta plans to open a new branch in Bankerohan, Davao City. She ensures that her finished clothing observes high quality standards. This, she believes, is the secret to maintaining a good relationship with her customers.

At present, she reports that there is high demand for her services and plans to seize this opportunity to further increase production and sales. With her superb entrepreneurial skills, she continues to pursue development and expansion of her business.

On October 25, 2005, Jeaneta’s efforts and perseverance were nationally acclaimed. She became Citigroup Philippines’ Microentrepreneur of the Year (MOTY) for the Mindanao Island Group Masikap category. This award was given in cooperation with the Microfinance Council of the Philippines (MCPI) and Bangko Sentral ng Pilipinas. Together with her husband, she flew in from Mindanao to receive a trophy plus a cash prize of Php 70,000.

Little could one expect from four simple sewing machines. However, one was clever, resourceful, and willful enough to sew patches of dreams to realization. Jeaneta Ledesma is indeed one woman worthy of inspiration, acclamation and emulation.

She is clever, resourceful and willful enough to sew patches of dreams to realization.

Sewing with Style



KABALIKAT PARA SA MAUNLAD NA BUHAY, INC.(A NON-STOCK, NON-PROFIT ORGANIZATION)

BALANCE SHEET

DECEMBER 31, 2005(With Comparative Figures for 2004)

2005 2004

ASSETS

Current Assets

Cash and cash equivalents (Note 4) P74,784,819 P24,186,666

Receivables – net (Note 5) 284,031,596 239,479,401

Prepaid expenses and other current assets (Note 6) 4,431,783 4,144,399

Total Current Assets 363,248,198 267,810,466

Property and Equipment – net (Note 7) 9,688,824 11,167,991

Investment in Stocks (Notes 8 and 11) 28,917,920 16,098,987

Other Assets 2,200,182 2,287,654

P404,055,124 P 297,365,098

LIABILITIES AND FUND BALANCE

Current Liabilities

Accounts payable and accrued expenses (Notes 9 & 10) P 16,431,628 P 15,641,732

Current portion of long-term debt (Notes 11 & 12) 34,606,002 45,549,841

Total Current Liabilities 51,037,630 61,191,573

Long-term Debt (Note 12) 31,339,134 56,517,526

Capital Build-up (Note 13) 149,873,649 97,631,216

Fund Balance 171,804,711 82,024,783

P 404,055,124 P 297,365,098

See Notes to Financial Statements


STATEMENTS OF CHANGES IN FUND BALANCE

FOR THE YEAR ENDED DECEMBER 31, 2005(With Comparative Figures for 2004)

2005 2004

FUND BALANCEBalance at beginning of year As previously reported P 82,024,783 P 65,433,450

Prior period adjustment (Note 17) - 1,637,379

As restated 82,024,783 67,070,829

Excess of revenues over expenses 89,779,928 14,953,954

P 171,804,711 P 82,024,783

STATEMENTS OF REVENUES AND EXPENSES


2005 2004

REVENUESService income P 212,359,326 P 110,755,456

Donations and contributions 17,125,470 1,974,031

Others 3,628,546 1,673,619

233,113,342 114,403,106

EXPENSES Operating expenses (Note 14) 122,391,751 84,977,471

Administrative expenses (Note 15) 20,941,663 14,471,681

143,333,414 99,449,152

EXCESS OF REVENUES OVER EXPENSES P 89,779,928 P 14,953,954




STATEMENTS OF CASH FLOWS


2005 2004

CASH FLOWS FROM OPERATING ACTIVITIES Excess of revenues over expenses P 89,779,928 P 14,953,954

Adjustments for: Depreciation and amortization 3,929,448 3,044,015

Provision for doubtful accounts 2,834,933 398,181

Receivables written-off (491,932) (684,449)

Recovery in value of held for trading securities (118,933) -

Prior period adjustment - 1,637,379

Excess of revenues over expenses before working

capital changes 95,933,444 19,349,080

Increase in:

Receivables (46,895,196) (146,905,137)

Prepaid expenses and other current assets (287,384) (3,354,565)

Accounts payable and accrued expenses 789,896 9,743,321

Capital build-up 52,242,433 61,697,052

Net cash provided by (used in) operating activities 101,783,193 (59,470,249)

CASH FLOWS FROM INVESTING ACTIVITIES

Decrease (increase) in other assets 87,472 (1,140,854)

Acquisitions of property and equipment (2,450,281) (8,204,372)

Investment in stocks (12,700,000) -

Proceeds from sale of property and equipment - 63,963

Net cash used in investing activities (15,062,809) (9,281,263)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt 33,000,000 83,000,000

Payments of long-term debt (69,122,231) (13,932,633)

Net cash provided by (used in) financing activities (36,122,231) 69,067,367

NET INCREASE IN CASH AND CASH EQUIVALENTS

50,598,153

315,855

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

24,186,666

23,870,811

CASH AND CASH EQUIVALENTS AT END OF YEAR

P74,784,819

P24,186,666



KABALIKAT PARA SA MAUNLAD NA BUHAY, INC.(A NON-STOCK, NON-PROFIT ORGANIZATION)

NOTES TO FINANCIAL STATEMENTS

1. Organization

Kabalikat Para Sa Maunlad Na Buhay, Inc. (“the Organization”) is a non-stock, non-profit development organization which was organized on November 4,1986 with the objective of assisting the low-income Filipinos in their pursuit for education, culture, civic, physical and economic advancement with the end in view that they will become responsible members and assets of society. To attain these objectives, the Organization conducts seminars, lectures and trainings by inviting resource persons who have expertise and knowledge in specialized fields and extends financial assistance at reasonable interest rates to economically active poor people.

On March 12, 2003, the Organization was certified by the Philippine Council for NGO Certification as a qualified donee institution in accordance with Revenue Regulations No. 13-98 for a period of three years. Accordingly, it is exempt from payment of income tax on income it received and the filing of income tax return covering such income. Such exemption, however, does not apply to income of whatever kind and character derived from the use of the Organization’s properties, real and personal, or from any of its activities conducted for profit regardless of the dispositions made of such income.

The Organization holds its office at No. 12 San Francisco Street, Karuhatan, Valenzuela City.

The Organization’s financial statements as of and for the year ended December 31,2005 were authorized for issue by the Board of Trustees’ authorized representative on March 3, 2006.

2. Summary of Significant Accounting Policies

The following summary explains the significant accounting policies, which have been adopted in the preparation of the financial statements:

Basis of PreparationThe accompanying financial statements have been prepared in conformity with the accounting principles generally accepted in the Philippines (Philippine GAAP), as set forth in Philippine Financial Reporting Standards (PFRS). These are the Organization’s first PFRS financial statements where PFRS 1, First-time adoption of Philippine Financial Reporting Standards, has been applied.

The financial statements are presented in Philippine Pesos. They are prepared on the historical cost basis.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening PFRS balance sheet at January 1, 2004 for the purpose of the transitions to PFRS.


Adoption of New Accounting StandardsThe Accounting Standards Council (ASC) approved in 2004 the issuance of revised and new accounting standards, which are based on new International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and revised International Accounting Standards (IAS) arising from the improvements project of the IASB. The new and revised standards are effective for annual periods beginning on or after January 1, 2005. According, effective January 1, 2005, the Organization adopted the following PFRS and Philippine Accounting Standards (PAS) which are relevant to its operations:

• PFRS 1, First-time Adoption of Philippine Financial Reporting Standards;• PAS 1, Presentation of Financial Statements;• PAS 8, Accounting Policies, Changes in Accounting Estimates and Errors;• PAS 10, Events after the Balance Sheet Date;• PAS 16, Property, Plant and Equipment;• PAS 17, Leases;• PAS 19, Employee Benefits;• PAS 24, Related Party Disclosures;• PAS 32, Financial Instruments: Disclosure and Presentation;• PAS 36, Impairment of Assets; and• PAS 39, Financial Instruments: Recognition and Measurement

Except as explained in the next paragraph, the adoption of the above new standards did not have a material effect on the Organization’s financial position, results of operations or cash flows. Additional disclosures required by the standard, however, were included in the financial statements, where applicable.

As mentioned above, the adoption of PAS 19, Employee Benefits, prescribes the manner of measuring benefit expense and changes the manner of computing benefit expense pertaining to past service cost and actuarial gains and losses. The standard requires a company to recognize the transitional liability at the time of the adoption either immediately or on a straight-line basis over up to five years from the date of adoption. It also requires a company to determine the present value of defined benefit obligations and the fait value of any plan asset with sufficient regularity to ensure that the amounts recognized in the financial statements do not differ materially from amounts that would be determined at the balance sheet date. Transitional liability recognized during the year amounted to P562,301 (Note 10).

Cash and Cash EquivalentsCash includes cash on hand and with banks. Cash equivalents are short-term highly liquid instruments purchased with the maturity of three (3) months or less from date of acquisition and are subject to an insignificant risk of change in value.

Investment in StocksInvestment in equity securities is initially recognized at transaction price or the fair value of the stocks at acquisition date.

Held for trading equity securities are measured at fair value with gains or losses being recognized in the statements of revenues and expenses.


Available for sale equity securities are measured at fair value with gains or losses being recognized as a separate component of equity until the investment is derecognized or until the investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is included in the statements of revenues and expenses. Stocks for which fair value cannot be reliably measured are recorded at cost.

ReceivablesReceivables are stated at face value, net of allowance for doubtful accounts maintained at a level considered adequate to provide for potential uncollectible account.

Revenue RecognitionRevenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the Organization and the amount of the revenue can be measured reliably. Revenues from loans and other related fees are recognized based on the accrual method of accounting.

Property and EquipmentProperty and equipment, except for land, are carried at cost less accumulated depreciation, amortization and impairment losses, if any. Land is stated at cost less any impairment losses.

Initially, an item of property and equipment is measured at its cost, which comprises its purchase price and any directly attributable costs of bringing the asset to the location and condition for its intended use. Subsequent costs that can be measured reliably are added to the carrying amount of the asset when it is probable that future economic benefits associated with the asset will flow to the Organization. The costs of day-to-day servicing of an asset are recognized as an expense in the period in which they are incurred.

Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the estimated useful life of the improvements or the term of the lease, whichever is shorter. The estimated useful lives are as follows:

Number of YearsBuilding and improvements 40Leasehold improvements 3Furniture and equipment 1-5Transportation equipment 1-5

The useful lives and depreciation and amortization method are reviewed at each balance sheet date to ensure that the period and method of depreciation and amortization are consistent with the expected pattern of economic benefits from those assets.

When an asset is disposed of, or is permanently withdrawn from use and no future economic benefits are expected from its disposal, the cost and accumulated depreciation, amortization and impairment losses, if any, are removed from the accounts and any resulting gain or loss arising from the retirement or disposal is reflected in current operations.

Asset ImpairmentThe carrying amounts of property and equipment and other long-lived assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the impaired asset is estimated.


An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognized in the statements of income.

The recoverable amount of property and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash flows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment are recognized in the revenues and expenses.

Operating Lease PaymentsLeases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Payments made under operating leases are recognized in the statements of revenues and expenses on a straight-line basis over the term of lease.

Foreign Currency TransactionsThe functional and presentation currency of the Company is the Philippine Peso. Transactions in foreign currencies are recorded in Philippine peso based on the exchange rates prevailing at transaction dates. Foreign currency denominated monetary assets and liabilities are translated into Philippine peso using the prevailing exchange rate at balance sheet date. Exchange gains or losses arising from foreign currency denominated items at rates different from those at which they were previously recorded are credited or charged to current operations.

Related PartiesParties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. Transactions between related parties are based on term similar to those offered to non-related parties.

3. Management’s Use of Estimates

The preparation of the financial statements in conformity with Philippine GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The estimates and assumptions used in the financial statements are based upon management’s evaluation of relevant facts and circumstances as of the date of the financial statements. Actual results could differ from such estimates.

PAS 1, Presentation of Financial Statements, which was adopted by the Organization, effective January 1, 2005, requires disclosure about key sources of estimation, uncertainty and judgment management has made in the process of applying accounting policies. The following presents a summary of these significant estimates and judgments:


Estimated allowance for doubtful accountsThe Organization maintains allowances for doubtful accounts at a level considered adequate to provide for potential uncollectible receivables. The level of this allowance is evaluated by management on the basis of factors that affect the collectibility of the accounts. These factors include, but are not limited to, the length of the Organization’s relationship with the customer, the customer’s payment and known market factors. The Organization reviews the age and status of receivables, and identifies accounts that are to be provided with allowances on a continuous basis.

As of December 31, 2005 and 2004, receivables amounted to P284,031,596 and P239,479.401, respectively (see Note 5).

Estimated useful lives of property and equipmentThe Organization reviews annually the estimated useful lives of property and equipment based on the period over which the assets are expected to be available for use and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence. 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. A reduction in the estimated useful lives of property and equipment would increase the recorded depreciation expenses and decrease noncurrent assets.

As of December 31, 2005 and 2004, property and equipment amounted to P9,688,824 and P11,167,991, respectively (see Note 7).

Pension and other employee benefitsThe determination of the obligation and cost of pension and other employee benefits is dependent on the selection of certain assumptions used by the actuary in calculating such amounts. Those assumptions include among others, discount rates, expected returns on plan assets and salary increase rates (see Note 10). In accordance with Philippine GAAP, actual results that differ from the Organization’s assumptions are accumulated an amortized over future periods and therefore, generally affect the recognized expense and recorded obligation in such future period.

While the Organization believes that our assumptions are reasonable and appropriate, significant differences between actual experience and assumptions may materially affect the cost of employee benefits and related obligations. As of December 31, 2005, the Organization’s pension obligation amounted to P2,623,994 (see Note 10).

4. Cash and Cash Equivalents

This account consists of:

2005 2004Cash on hand and in banks P52,341,125 P24,186,666Short-term investments 22,443,694 -

P74,784,819 P 24,186,666

Short-term investments represent thirty-day cash placements which earn interest of 5% to 7.5%. Short-term investments include P4.2 million in time deposits inclusive of interest earned, with Opportunity Microfinance Bank (OMB), a related party (see Notes 11 and 12).


5. Receivables

This account consists of:2005 2004

Loans receivable P 271,753,760 P 231,989,325 Accounts receivable 10,119,505 3,810,803 Interest receivable 4,752,850 3,930,790

286,626,115 239,730,918Less allowance for doubtful accounts 2,594,519 251,517

P284,031,596 P239,479,401

Certain loans receivable are used as collateral for the Organization’s long-term debt (see Note 12).

6. Prepaid Expenses and Other Current Assets


Unused office supplies P3,258,079 P3,537,214

Prepaid expenses 1,173,704 607,185P4,431,783 P4,144,399

7. See suceeding page

8. Investment in Stocks

Details of the Organization’s investment in stocks account are as follows:

2005 2004

Opportunity Microfinance Bank (OMB) – at cost P28,600,000 P15,900,000

Investment in stocks held for trading – at fair value 317,920 198,987

P28,917,920 P16,098,987

In the year 2000, the Organization, together with the other member-partners of the Alliance of Philippine Partners in Enterprise Development, Inc. (APPEND) established a micro-finance bank wherein the Organization will fully participate as a lead partner with an initial cash outlay of P100,000.

As part of the Securities and Exchange Commission (SEC) requirement, OMB, with an authorized capital stock of P800 million, invested P58 million representing its initial paid-up capital into a trust account. Immediately thereafter, the Organization invested a total amount of P8.3 million representing 83,000 shares of stock to OMB. The Organization has a total investment of P28.6 million or 286,000 shares of stock in OMB as of December 31,2005, representing 12.79% interest OMB.

A recovery in value of held for trading securities amounting to P118,933 was recognized in 2005 statement of income and expenses.


7. Property and Equipment


Certain properties are used as collateral for the Organization’s long-term

debt (see Note 12).

For the Year Ended Decem

ber 31, 2005 Land

Building and

Improvem

entsFurniture and

Equipment

Transportation Equipm

entLeasehold

Improvem

entsTotal

Gross carrying am

ount: B

eginning balance, January 1, 2004P

1,050,000P

5,184,211P

4,371,587P

848,352P

528,169P

11,982,319A

dditions -

774,0004,246,181

-3,184,191

8,204,372

Disposals

-(754,345)

(1,860,616)(104,551)

-(2,719,512)

Ending balance, D

ecember 31, 2004

1,050,0005,203,866

6,757,152743,801

3,712,36017,467,179

Beginning balance, January 1, 2005

1,050,0005,203,866

6,757,152743,801

3,712,36017,467,179

Additions

-556,000

810,1351,084,146

-2,450,281

Reclassifications

-(334,750)

359,642-

(24,892)-

Ending balance, Decem

ber 31, 20051,050,000

5,425,1167,926,929

1,827,9473,687,468

19,917,460A

ccumulated depreciation

and amortization:

Beginning balance, January 1, 2004

- 1,813,921

3,218,403791,024

87,3745,910,722

Provisions for the year

-123,021

1,514,61434,692

1,371,6883,044,015

Disposals

-(754,345)

(1,796,653)(104,551)

-(2,655,549)

Ending balance, D

ecember 31, 2004

-1,182,597

2,936,364721,165

1,459,0626,299,188

Accum

ulated depreciation and am

ortization:B

eginning balance, January 1, 2005-

1,182,5972,936,364

721,1651,459,062

6,299,188P

rovisions for the year-

531,5442,240,191

68,8511,088,862

3,929,448R

eclassifications-

(111,681)136,573

-(24,892)

-Ending balance, D

ecember 31, 2005

-1,602,460

5,313,128790,016

2,523,03210,228,636

Net carrying am

ount:B

alance at beginning of yearP

1,050,000P

4,021,269P

3,820,788P

22,636P

2,253,298P

11,167,991B

alance at end of yearP

1,050,000P

3,822,656P

2,613,801P

1,037,931P

1,164,436P

9,688,824


9. Accounts Payable and Accrued Expenses


2005 2004

Account payable P6,599,404 P4,188,294

Accrued expenses 5,803,657 7,406,413

Unearned income 2,444,296 4,047,025

Others 1,584,271 -

P16,431,628 P15,641,732

10. Retirement Plan

The Organization has an unfounded non-contributory retirement plan covering all regular employees. Retirement expense charged to operations in 2005 amounted to about P1.3 million. As of December 31, 2005, the actuarial present value of pension benefits amounted to about P2,623,994. Below are components of the amounts recognized in the balance sheet. Movements in the net liability for defined obligations recognized in the balance sheets are as follows:

Defined benefitpension plans

2005

Pension liability at start of year P 1,309,848

Expense recognized in the statements of revenues and expenses 1,314,146

Pension liability at end of year P2,623,994

The amounts recognized in the statements of revenues and expenses are as follows:

2005

Current service cost P 489,744

Interest cost 262,101

Transitional liability recognized during the year 562,301

Retirement expense P1,314,146

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

Annual rates 2005

Discount rate 14% p.a.

Expected rate of return on plan assets 8% p.a.

Future salary increases 10% p.a.


11. Related Parties

a. Significant transactions with a related party during 2005 and 2004 are as follows:

Related Party Relationship with the Organization 2005

2004

OMB Associate Subscription of additional shares of stock (Note 8) P12,700,000

P15,900,000 Loan Availment (Note 12) 5,500,000 -

Short-term investments Note 4) 4,000,000 -

Others (rentals & utilities) 744,000 -

As of December 31, 2005 and 2004, the outstanding balances of related party receivables and payables are as follows:

2005 2004

Amounts due from OMB (short-term investments) P4,192,721 P -

Amounts due to OMB (loan payable) P5,500,000 P -

b. The key management personnel compensation representing short-term employee benefits amount to about P2.82 million in 2005, and P2.53 million in 2004.

c. Total remuneration of key management personnel included in “Salaries and Wages” amount to about P9.45 million in 2005 and P7.38 million in 2004.

12. Long-Term Debt

Loans from Oikocredit Foundation Philippines, Inc.In a meeting held on April 1, 2002, the Board of Trustees approved the availment of a P33 million loan from Oikocredit Foundation Philippines, Inc., (Oikocredit) payable in three (3) years at 10.67% interest per annum on the first year; succeeding annual interest rate shall be the average interest rate paid on the 91-day Philippine Treasury Bills for all issues during the 6 months period preceding Oikocredit’s review plus five percent (5%) provided that the interest rate for the loan shall no point be lower than 10%. The loan was used to fund the expansion projects of the Organization.

The loan is secured by the following:

a. a first mortgage on real estate property of the Organization located in Karuhatan, Valenzuela with an area of three hundred (300) square meters and improvements thereon;

b. a first mortgage on the shares of capital stock of OMB, a partner, equivalent to 158,999 total shares with a par value of P100 each;

c. assignment of loan portfolio and related securities which, at all times, shall have a face value of at least P9 million;

d. a promissory note in form and substance acceptable to the lender.


On January 9, 2006, the remaining unpaid obligation on the above loan was fully paid.

Another loan was availed from Oikocredit Foundation Philippines, Inc. amounting to P55 million. The loan agreement was issued on June 23, 2004. The interest for the loan during the first year is 12.16% while the succeeding interest payments will be on a monthly basis calculated using treasury bill rates. Repayment is done in semi-monthly payments over a period of three years. The first payment was done on February of 2005, eight (8) months after the disbursal of the loan.

The loan is secured by the securities enumerated above, as well as the following:

a. Continuing deed of assignment of loan portfolio and related securities equivalent to 120% of the outstanding loan balance; and

b. Promissory note in form and in substance acceptable to the lender.

As of December 31,2005 and 2004, total balance of loan from Oikocredit amounts to P35.75 million and P74.25 million, respectively.

Loan from People’s Credit and Finance Corporation (PCFC)The Organization has an outstanding loan from PCFC amounting to P15 million and P1.5 million. These loans shall be used for the granting of sub-loans to finance micro-enterprise or livelihood projects of qualified sub-borrowers.

The interest rate for investment loan is at 12% and 3% for institutional loan. These loans are secured by the following:

a. Assignment of loans receivable for which the proceeds was used;

b. First mortgage on all acquired properties and equipment using the proceeds; and

c. Post dated checks.

Loan from Taytay sa Kauswagan, Inc. (TSKI)On May 1, 2004, the Organization obtained a loan from TSKI amounting to P11 million of which P10 million was already received as of December 31, 2004. The interest rate is at 10% for the first two (2) years, 11% for the third year and 12% for the fourth and fifth years. The agreement requires the Organization to open a microfinance branch in Paranaque in behalf of TSKI, calling it Kabalikat sa Kaunlaran Project.

Loan from OMBOn February 28, 2005, the Organization obtained a loan from OMB amounting to P5.5 million at 9% interest per annum for a period of one year, payable in four (4) equal quarterly payments. The loan is secured by the Organization’s short-term time deposit with OMB amounting to about P4.2 million as of December 31, 2005.

On February 28, 2006, the loan from OMB was fully paid.


13. Capital Build-Up

This represents initial membership contribution of P200 and the mandatory weekly savings amounting to P40 per member that earn interest at the rate of 6% per annum.

14. Operating Expenses


Salaries and wages P 45,443,922 P 16,190,668

Employee benefits and allowances 22,939,918 29,225,960

Financing cost 14,366,691 7,731,584

Transportation and travel 7,505,748 6,031,562

Rent (Note 16) 7,088,697 4,737,147

Communication, light and water 5,057,177 3,579,747

Meetings, trainings and conferences 4,381,131 3,254,200

SSS, Medicare, ECC and Pag-ibig contribution 3,477,965 2,442,421

Doubtful accounts 2,834,933 398,181

Depreciation and amortization (Note 7) 2,747,351 2,505,110

Printing 2,191,474 2,256,518

Supplies 2,184,407 2,336,701

Insurance 942,547 461,682

Legal, audit and other professional fees 305,890 264,164

Repairs and maintenance 263,671 380,541

Taxes and licenses 187,288 127,739

Security services 52,512 30,175

Donations and contributions 20,338 43,973

Ads & Promotions Expense 8,988 -

Representation and entertainment 1,193 1,222,848

Miscellaneous 389,910 1,756,550 P122,391,751 P84,977,471


15. Administrative Expenses


Salaries and wages P 5,104,296 P4,398,702

Employee benefits and allowances (Note 10) 4,326,421 2,065,451

Meetings, trainings and conferences 2,361,867 814,348

Transportation and travel 2,246,222 1,417,487

Communication, light and water 1,933,700 1,404,739

Depreciation and amortization (Note 7) 1,182,097 538,905

Non MED expense 1,069,857 1,177,824

Supplies 613,293 295,542

Representation and entertainment 330,159 328,022

SSS, Medicare, ECC and Pag-ibig contributions 279,256 228,824

Security services 151,778 249,000

Advertisement and promotion 133,260 194,374

Gasoline and oil 132,545 74,428

Repairs and maintenance 106,388 29,303

Insurance 72,907 56,627

Taxes and licenses 58,063 294,931

Legal, audit and other professional fees 56,821 297,767

Donations and contributions 46,251 111,885

Printing 34,168 83,600

Miscellaneous 702,314 409,922

P 20,941,663 P 14,471,681

16. Lease Commitments

The Organization leases office spaces for its 24 branches in Luzon and Mindanao for a period of two to three years, with options to renew the lease. Rent expense in 2005 and 2004 amounted to P7,088,697 and P4,737,147, respectively.

The future minimum lease payments under the above lease contracts are as follows:

2005 2004

Less than one year P 3,549,502 P 7,088,697

Between one and five years 2,078,209 5,627,711

P 5,627,711 P 12,716,408


17. Prior Period Adjustment

Certain revenues pertaining to 2003 were incorrectly included in 2004. The financial statements of 2004 has been restated to correct this error. A corresponding adjustment amounting to P1,637,379 was reflected in 2003 result of operations.

18. Financial Instruments

Financial Risk Management Objectives and PoliciesThe Organization’s financial instruments consist of cash and cash equivalents, investments, loans receivable and bank loans. The main risk arising from the use of these financial instruments are interest rate risk, credit risk and liquidity risk.

Interest Rate RiskThe Organization’s exposure to the risk for changes in market rate relates primarily to its long-term debt obligations with variable interest rates. However, most of the Organization’s existing debt obligations are based on fixed interest rates with relatively small component of the debts that are subject to interest rate fluctuation.

Credit RiskCredit risk represents the loss that the Organization would incur if counterparty failed to perform under its contractual obligations. The Organization has established controls and procedures in its credit policy to determine and monitor the credit worthiness of customers and counterparties.

Liquidity RiskThe Organization manages liquidity risk by maintaining a balance between continuity of funding and flexibility. Treasury controls and procedures are in place to ensure the sufficient cash is maintained to cover daily operational and working capital requirements. Management closely monitors the Organization’s future and contingent obligations and sets up required cash services as necessary in accordance with internal policies.


Executive Director’s OfficeRosemarie C. CastroExecutive [email protected]

Angeli P. VillamorExecutive [email protected]

Head Office Contact numbers:(02) 291-1484 to 86; (02) 292-2091Fax: 292-2441; 294-0629

Operations GroupEdgardo S. MercedesDeputy Director - [email protected].

Microfinance OperationsCarmela N. Porras (Calabarzon 1)Vencent A. Abraham (Calabarzon 2)Enrique B. Maca (Bicol)Rhanny P. Barrera (Caraga)Nemwell P. Arzaga (S. Mindanao)

Transformation UnitRizaldy R. Duque - [email protected]

Support Services GroupLiza D. EcoDeputy Director - Support [email protected]

Administration DepartmentHector H. Celajes Jr. - Admin Assistant [email protected]

AuditMadelyn P. Frijillano - Audit [email protected]

Business Development ServicesHazel Christine Z. Rosacia - BDS Unit HeadMarifel C. Suplemento - BDS [email protected]

Finance DepartmentAnnalie D. Concepcion - ManagerJoselito S. Penalosa - Fund Management HeadSancho A. Mantaos II - General Accounting HeadHarry D. Dalanon - Branch Accounting [email protected]

Directory

BatangasDanilo R. Tolentino - Branch Manager2nd Floor Ferrel II Bldg., Dy Silang St.Phone (043) [email protected]

Central CaviteRoschelli B. Clemente - Branch Manager3rd Floor Lolo Berong Bldg., Nueno Avenue, ImusPhone (046) 471-4205 Fax (046) [email protected]

LipaRonaldo R. Ravelo - Branch Manager2nd Floor Ornasco Trading Bo., MarawouyPhone (043) [email protected]

Lower CaviteEdgardo B. Atienza - Branch Manager3rd Floor Orchids Bldg., Daang Amaya I, TanzaPhone (046) 885-2378 Fax (046) [email protected]

Metro Manila South IRandy P. Bautista - Branch Manager2nd Floor Rudex Bldg., Baclaran St., Pasay CityPhone (02) [email protected]

Metro Manila South IIMary Rose P. de Guzman - Branch Manager2nd Floor B. Nenita Bldg., 8124 Sucat, ParanaquePhone (02) [email protected]

Upper CaviteMa. Margarita J. Robles - Branch Manager2nd Floor MBC Bldg. Governor’s Drive, Silang, CavitePhone (046) 890-0742 Fax (046) [email protected]

CALABARZON I

HEAD OFFICE Human Resource DevelopmentArthur N. Gonzaga - HR Training Unit HeadConcepcion B. Parantar - HR Admin. Officer [email protected]

Management Information SystemRonel L. Castor - MIS [email protected]

Research and DevelopmentLouise Anne P. [email protected]


CalambaEdnalyn L. Hospital - Branch Manager3rd Floor Sajite Bldg., National Road Brgy. 1 CalambaPhone(049) [email protected]

LucenaFay Lorraine C. Amodia - Branch Manager3rd Floor HR Bldg., Quezon Ave corner, Gomez St. Phone (042) [email protected]

San PabloHazel T. dela Cruz - Branch Manager3rd Floor Joajoco Bldg., Burgos St.Phone (049) [email protected]

Sta. CruzReynald B. Alpajando - Branch ManagerJogshaw Bldg., Mabini St., Sta. Cruz, LagunaPhone (049) [email protected]

GumacaIan Mark B. Villacruz - Branch Manager2nd Floor AQC Bldg., Barangay PenafranciaPhone (042) [email protected]

Iriga2nd Floor Tan’s Bldg., San RoquePhone (054) [email protected]

LegaspiFrederick B. Siapno - Branch Manager2nd Floor Rosario Salvador Bldg., Rizal St.Phone (052) 481-3441 Fax (052) [email protected]

NagaJasmin E. Mendoza - Branch Manager2nd Floor Thomas Enrile Bldg., Penafrancia Ave.Phone (054) [email protected]

ButuanDonald A. Cosmiano - Branch Manager2nd Floor Lucebinino Bldg., J.C. Aquino Ave.Phone (085) [email protected]

CALABARZON 2

BICOL REGION

Compostela ValleyJudith P. Apat - Branch Manager2nd Floor Mico Pharmacy, Arabejo St., NabunturanPhone (084) [email protected]

San FranciscoLina May A. Osorio - Branch Manager2nd Floor Gift Gallery, Brgy. 1 Bravo Comp.Phone (085) 839-1113 Fax (085) [email protected]

SurigaoJerzon S. Solomon - Branch Manager2nd Floor Elipe Bldg., Corner Narciso & Kaimo St.Phone (086) [email protected]

Davao ProvinceOrbil S. Driz - Branch Manager2nd Floor ERGB Bldg., Dalisay Gante RoadPhone (084) 218-5643 Fax (084)[email protected]

DigosAmelita T. Andilab - Branch Manager2nd Floor JMC Bldg., Rizal Avenue, Zone II Phone (082) [email protected]

General SantosEvelyn N. Francisco - Branch ManagerDoor 1 & 2 Aquino Bldg., J. Catolico AvenuePhone (083) 554-5908 Fax (083) [email protected]

KidapawanRhodora S. Ranque - Branch Manager2nd Floor Prudenciado Bldg., Jose Abad Santos St.Phone (064) [email protected]

Marbel UnitSuzette L. Mandayag - PUS2nd Floor Del Rosario Bldg., Gen. Santos DrivePhone (083) 228 - [email protected]

Metro DavaoGrace C. Dasalla - Branch ManagerDoor 31 & 32 Carlos Villa Abrille, J.P. Laurel St., Phones (082) 224-5905/225-3850 Fax (082) [email protected]

CARAGA REGION

SOUTHERN MINDANAO


The Board of Trustees

EMMANUEL M. DE GUZMANVice-Chairman

AURELIO C. LLENADO, JR.Corporate Treasurer

ATTY. SERVILLANO C. MENDOZACorporate Secretary

DAMIANA D. EXIOMOMember

DR. RICARDO B. JUMAWANMember

EDUARDO C. JIMENEZMember

DR. AMELIA L. GONZALESChairwoman

Kabalikat para sa Maunlad na Buhay, Inc.

12 San Francisco St., Karuhatan, Valenzuela CityPhilippines 1441 Tel: (632) 291-1484 to 86 Email: [email protected]: www.KMBI.org.ph

Documents

2005 Annual Report