SOLID GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 (Amounts in Philippine Pesos) Notes 2012 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax from continuing operations P 1,5<strong>17</strong>,807,049 P 573,524,122 P 366,415,091 Loss before tax from discontinued operations 5 - ( 3,514,984 ) ( 16,445,538 ) Profit before tax 1,5<strong>17</strong>,807,049 570,009,138 349,969,553 Adjustments for: Reversal of impairment losses on property, plant and equipment - net 19 ( 350,000,000 ) - - Gain on sale of assets 28 ( 267,133,735 ) ( 1,721,437 ) ( 6,646,929 ) Fair value gains on investment property - net 19 ( 149,569,182 ) ( 191,644,597 ) ( 27,648,081 ) Interest <strong>inc</strong>ome ( 147,707,834 ) ( 84,885,381 ) ( 86,478,277 ) Reversal of impairment losses on trade and o<strong>the</strong>r receivables 7, 21 ( 75,708,696 ) ( <strong>17</strong>,014,146 ) ( 11,104,219 ) Reversal of allowance for inventory obsolescence 10 ( 65,257,144 ) ( 27,304,279 ) ( 19,184,724 ) Depreciation and amortization 12 46,467,220 78,<strong>17</strong>3,250 75,588,976 Gain on derecognition of liabilities 19 ( 25,1<strong>17</strong>,698 ) - - Impairment losses on trade and o<strong>the</strong>r receivables 7 12,767,663 21,145,641 9,266,502 Unrealized foreign currency losses (gains) - net 14,111,262 1,723,603 1,119,803 Interest expense 21 6,726,796 8,203,376 10,530,521 Loss on inventory obsolescence 10 3,009,207 34,790,640 59,288,554 Interest amortization on refundable deposits <strong>17</strong> 1,431,460 614,019 864,519 Reversal of impairment losses on available-for-sale (AFS) financial assets 21 ( 990,643 ) - - Gain on sale of investment property - ( <strong>17</strong>,802,607 ) - Fair value loss on financial assets at fair value through profit or loss (FVTPL) 21 - 5,909,803 - Impairment losses on AFS financial assets 9 - 18,995,887 33,657,338 Gain on disposal of non-current assets held-for-sale 5 - - ( 452,503 ) Operating profit before working capital changes 520,835,725 399,192,910 388,771,033 Increase in trade and o<strong>the</strong>r receivables ( 65,084,488 ) ( 279,274,483 ) ( 349,009,034 ) Decrease in advances to related parties 106,910,011 72,650,008 303,135,008 Decrease (<strong>inc</strong>rease) in financial assets at FVTPL 70,272,991 ( 76,182,794 ) - Decrease in AFS financial assets 34,747,898 86,079,080 187,609,047 Decrease (<strong>inc</strong>rease) in merchandise inventories and supplies 210,494,038 ( <strong>17</strong>9,320,182 ) ( 349,372,147 ) Increase in real estate inventories ( 335,284,669 ) ( 347,777,942 ) ( 281,121,792 ) Increase in o<strong>the</strong>r current assets ( 130,156,483 ) ( 96,146,196 ) ( 47,045,684 ) Decrease (<strong>inc</strong>rease) in retirement benefit asset 6,116,679 ( 4,363,496 ) ( 28,981,993 ) Decrease (<strong>inc</strong>rease) in o<strong>the</strong>r non-current assets 1,534,754 2,427,596 ( 9,494,057 ) Increase in trade and o<strong>the</strong>r payables 61,587,376 <strong>17</strong>8,804,5<strong>17</strong> 120,058,602 Increase in customers’ deposits 195,586,019 657,278,552 - Decrease in advances from related parties ( 95,865,412 ) ( 61,416,380 ) ( 32,528,309 ) Increase (decrease) in refundable deposits ( 997,074 ) ( 255,543 ) 3,291,167 Increase in retirement benefit obligation 6,471,018 2,989,548 1,636,997 Cash generated from (used in) operations 587,168,383 354,685,195 ( 93,051,163 ) Interest received 64,387,678 47,757,624 63,089,091 Cash paid for <strong>inc</strong>ome taxes ( 43,387,647 ) ( 44,020,603 ) ( 12,316,993 ) Net Cash From (Used in) Operating Activities 608,168,414 358,422,216 ( 42,279,065 ) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of of assets 1,094,445,648 4,352,549 1,421,223 Acquisitions of property, plant and equipment 12 ( 143,682,133 ) ( 99,184,297 ) ( 56,800,567 ) Interest received 83,320,157 37,127,757 23,389,186 Additions to investment property 13 ( 5,153,524 ) ( 6,927,455 ) ( 1,352,695 ) Proceeds from disposal of investment property 13 - 26,873,607 - Proceeds from disposal of non-current assets held for sale - - 9,690,330 Net Cash From (Used in) Investing Activities 1,028,930,148 ( 37,757,839 ) ( 23,652,523 ) Balance forwarded P 1,637,098,562 P 320,664,377 ( P 65,931,588 )
- 2 - Note 2012 2011 2010 Balance brought forward P 1,637,098,562 P 320,664,377 ( P 65,931,588 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayments for interest-bearing loans 15 ( 207,731,833 ) ( 614,156,996 ) - Dividends paid ( 109,292,520 ) - - Interest paid ( 6,726,796 ) ( 8,203,376 ) ( 10,530,521 ) Net proceeds from interest-bearing loans 15 - 404,053,192 434,554,235 Net Cash From (Used in) Financing Activities ( 323,751,149 ) ( 218,307,180 ) 424,023,714 Effect of Currency Rate Changes on Cash and Cash Equivalents ( 14,111,262 ) ( 1,723,603 ) ( 1,119,803 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 1,299,236,151 100,633,594 356,972,323 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,720,748,062 1,620,114,468 1,263,142,145 CASH AND CASH EQUIVALENTS AT END OF YEAR P 3,019,984,213 P 1,720,748,062 P 1,620,114,468 Supplemental Information on Non-cash Investing Activities In 2012, SMC transferred land with carrying amount of P1.6 million as of December 31, 2012, previously classified as Investment Property to O<strong>the</strong>r Non-current Assets (see Note 13). See Notes to Con<strong>solid</strong>ated Financial Statements.
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SOLID GROUP INC. April 30, 2013 THE
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12. Check whether the issuer: (a) h
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1 PART I. BUSINESS AND GENERAL INFO
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3 Solid Laguna Corporation (SLC) wa
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5 Status of any-publicly announced
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7 • Distributoship Agreement with
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9 Major Risks involved in the Busin
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11 reform. On August 13, 1997, Soli
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13 The above lease contracts are re
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15 The number of shareholders of re
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17 Item 6. Management’s Discussio
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19 2010 Revenue improved by 17% in
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21 broadband segment posted P267 mi
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23 Advances from related parties am
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25 Other operating income amounted
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27 Total assets reached P11,716 mil
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29 Cost of rentals amounted to P38
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31 Property, plant and equipment am
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33 thumb of 2 : 1 by achieving a cu
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35 vii. Causes for any Material Cha
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37 Principally due to additional co
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39 The decrease was mainly in relat
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41 Non-current trade and other rece
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43 Principally due to other compreh
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45 Increase was due to higher trade
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47 Cost of real estate sold - 37% d
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49 Mainly from higher commissions,
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51 The overall scope of the audit w
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- 49 - Information relating to sign
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- 51 - Other accrued expenses inclu
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- 53 - 19. OTHER INCOME 19.1 Other
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- 55 - These expenses are classifie
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- 57 - 22.2 Post-employment Benefit
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- 59 - For determination of the pos
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- 61 - The reconciliation of tax on
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- 63 - The net deferred tax liabili
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- 65 - 24. EQUITY 24.1 Capital Stoc
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- 67 - The Group’s outstanding re
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- 71 - 26.10 Key Management Personn
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- 73 - (d) Gain on Sale of Assets S
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- 75 - 28.9 Others As of December 3
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- 77 - The Group’s management con
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- 79 - 30. CATEGORIES AND FAIR VALU
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Supplementary Schedules SOLID GROUP
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Solid Group Inc. and Subsidiaries S
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Solid Group Inc. and Subsidiaries S
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SOLID GROUP INC. Schedule I Reconci
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SOLID GROUP INC. AND SUBSIDIARIES S
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PAS 33 Earnings per Share a PAS 34
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Solid Group Inc. and Subsidiaries S