COVER SHEET - 2Go

Noteworthy, in compliance with corporate governance policy, SGV reported during the November 2010
meeting, that it will be replacing its Lead Financial Audit Partner, Ladislao Z. Avila, in 2011 as it is his
fifth year as SGV partner assigned to ATS.
2010 Financial Results
During the period covered by this report, the new Board AudCom concurred with the opinions
expressed by ATS’ external Auditor, SGV and Company, on the overall presentation of the financial
statements of the company.
The audit also included an evaluation of the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management.
The audit concluded that the balance sheets and the related statement of income and expenses, cash
flows, changes in capital and reserves present fairly, in all material aspects, the financial position of
ATS.
Based on the judgment about quality of accounting principles, SGV disclosed that the accounting
principles used by ATS are in compliance with the Philippine Financial Reporting Standards.
Significant accounting principles are disclosed in the notes to the financial statements, as required by
the standards.
Internal Audit
In accordance with established Standards and Code of Ethics of the profession, the Internal Audit
Department (IAD) continually strives to improve the proficiency, effectiveness and quality of the
Internal Audit activities.
The IAD reported to the Board AudCom, in its meeting held March 02, 2011, the annual general
assessment of the company’s compliance and procedures. Highlights on the validation of the
operational effectiveness of key activities and controls within these policies and procedures were
likewise presented. The assessment focused on policies and procedures relating to processes in
finance, operations, and IT systems. A summary update on management action plans for audit issues
raised requiring follow-up was also presented.
The accomplishments realized by IAD in 2010 were not without difficulties. There were a number of
constraints and limiting factors such as unfilled manpower plantilla and underestimated number of
man days to cover engagements for first-time audits and new auditable units.
Despite above operational challenges and with available resources at hand, IAD continued to deliver its
value-adding services to help improve operations; to serve the shareholders and management of ATS;
to partner with the business units in enhancing current performance and future competitiveness, and
to supply a source of future management talent and be an active participant in the improvement of
ATS.
Approval
Approved by the ATS Board Audit Committee and signed on its behalf by:
Mr. Washington Z. Sycip
Chairman, ATS Board Audit Committee
43