SEC Form 17-A: Annual Report - the solid group inc website

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Machinery and equipment related to the discontinued operations of Kita are still
presented as part of Property, Plant and Equipment account as of December 31, 2010
as the assets’ carrying values as of that date are not material (see Note 12). Machinery
and equipment relating to the discontinued operations of Kita with total cost amounting
to P25.2 million and a total carrying value of P0.2 were sold in 2011 at P1.5 million and
fully-depreciated machinery and equipment with total cost of P25.1 million was sold in
2010. In 2010, fully depreciated machinery and equipment with a total cost amounting
to P25.1 million were sold. The resulting gains from the disposals are presented as part
of Miscellaneous under Other Operating Income in the consolidated statements of
income (see Note 19).
In prior years, certain machinery and equipment of SLC (now OSSI – see Note 1.1)
with total carrying amounts of P12.1 million are classified as Non-current Assets Held
for Sale. These were subsequently sold to third parties for P9.7 million in June 2010.
At the time of sale, the assets had a carrying value of P9.2 million. The resulting gain
related to the sale of these assets is presented as part of Miscellaneous under Other
Operating Income in the 2010 consolidated statement of income (see Note 19).
The analysis of the revenue, expenses and tax expense of the discontinued operations
for the years ended December 31, 2011 and 2010 are shown below.
Notes 2011 2010
Sale of goods P 4,047,684 P 19,912,861
Cost of sales 18.1 ( 14,307,547 ) ( 31,736,150 )
Gross loss ( 10,259,863 ) ( 11,823,289 )
Other operating income (expenses):
General and administrative
expenses 20 ( 385,540 ) ( 9,271,158 )
Selling and distribution costs 20 ( 671,435 ) ( 413,308 )
Other operating income 19 8,353,416 2,823,829
7,296,441 ( 6,860,637 )
Other income (charges):
Finance income 21.1 84,448 2,891,714
Finance costs 21.2 ( 636,010 ) ( 653,326 )
( 551,562 ) 2,238,388
Loss before tax ( 3,514,984 ) ( 16,445,538 )
Tax expense 23.2 ( 348,839 ) ( 615,115 )
Loss from discontinued operations (P 3,863,823 ) (P 17,060,653 )