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

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- 69 - 26.5 Advances to and from Related Parties Certain subsidiaries of the Group grants to and obtains unsecured, noninterest-bearing cash advances from related parties owned by the Parent Company’s majority stockholders for working capital requirements and other purposes. The outstanding balances arising from these transactions amounting to P21.6 million and P11.6 million as of December 31, 2012 and P128.5 million and P107.5 million as of December 31, 2011 are presented as Advances to Related Parties and Advances from Related Parties, respectively, in the consolidated statements of financial position. In 2012, the Advances to Related Parties had net repayments of P106.3 million while Advances from Related Parties had net repayments of P95.9 million. No impairment losses were recognized on the Advances to Related Parties as management has assessed that the total amounts is fully collectible. 26.6 Transactions with STL SVC earns commission from sales of STL, a company owned by SGI’s majority stockholders, to customers in the Philippines. Commission revenue amounted to P1.7 million in 2012, P2.5 million in 2011 and P5.6 million in 2010 is presented as part of Rendering of Services in the consolidated statements of income. SVC also advances funds to STL to pay foreign suppliers. The outstanding receivable from STL amounted to P1.7 million and P1.1 million as of December 31, 2012 and 2011, respectively, and is shown as part of Trade receivables under the Trade and Other Receivables account in the consolidated statements of financial position (see Note 7). SVC also collects the receivables related to the sales of STL which are payable immediately upon receipt. Total collections made in behalf of STL in 2012 and 2011 amounted to P19.6 million and P0.2 million, respectively. Total obligations arising from this transaction as of December 31, 2012 and 2011 amounting to P18.8 million and P2.3 million, respectively, is presented as part of Non-trade payables under the Trade and Other Payables account in the consolidated statements of financial position (see Note 16). SVC also purchases materials and inventories from a foreign supplier, the payment of which is being made by STL on behalf of the Company. Total advances received related to this transaction amounted to P0.02 million in 2012 and P3.1 million in 2011. Outstanding balance arising from this transaction amounting to P3.1 million as of December 31, 2012 and 2011 is presented as part of Trade and Other Payables account in the consolidated statements of financial position (see Note 16). My Solid purchases mobile phones from STL. Total purchases amounted to P2.8 billion in 2012, P2.6 billion in 2011 and P898.3 million in 2010 and are presented as part of Cost of Sales in the consolidated statements of income (see Note 18.1). Outstanding liabilities relating to these purchases amounted to P121.1 million as of December 31, 2012 and P219.4 million as of December 31, 2011 and is shown as part of Trade payables under the Trade and Other Payables account in the consolidated statements of financial position (see Note 16). My Solid also made advance payments to STL for its future purchase of mobile phones. The outstanding advances amount to P210.8 million and P219.4 million as of December 31, 2012 and 2011 respectively, and is presented as part of Advances to supplier under Trade and Other Receivables account in the consolidated statements of financial position (see Note 7).
- 70 - In 2011 and 2010, Mytel (now My Solid – see Note 1.2) sold mobile phone inventories to STL. The outstanding receivables arising from these sales transactions are shown as part of Due from related parties under the Trade and Other Receivables account in the consolidated statements of financial position (see Note 7). 26.7 Transactions with Solid Company Limited (SCL) In 2008, BRL granted an unsecured, interest-bearing loan denominated in Chinese yuan renminbi to SCL, a related party owned by the Parent Company’s majority stockholders, amounting to P120.8 million which matures on March 1, 2011. The loan bears an annual interest rate of 6% payable annually with any unpaid interest compounded annually at the same rate of the principal amount. In 2009, the parties agreed to amend the loan agreement reducing the annual interest rate to 4% and making the loan payable in U.S. dollar. In 2011, the parties agreed to increase the annual interest rate to 5% and extend the loan for another year. Also in 2012, another transaction to extend the maturity of the loan for another year was executed between BRL and SCL. The loan amounting to P104.4 million and P111.3 million as of December 31, 2012 and 2011, respectively, is presented as part of Loans Receivables under the Trade and Other Receivables account in the consolidated statements of financial position (see Note 7). Total interests earned from these loans amounted to P5.8 million in 2012, P5.2 million in 2011 and P4.6 million in 2010, and is presented as part of Interest Income under the Revenues account in the consolidated statements of income. 26.8 Loan Availments In 2011, Fil-Dragon obtained loans from companies that are owned by SCL. Outstanding balance from these loans amounted RMB54.4 million (P359.3 million) and RMB58.1 million (P404.1 million) as of December 31, 2012 and 2011, respectively. These loans bear interest at prevailing market rates per annum ranging from 6.0% to 10.0% in 2012 and 2011. The liabilities are unsecured and payable on demand. The amount of loan is presented as part of Interest-bearing loans in the 2012 and 2011 consolidated statement of financial position. Borrowing cost incurred in 2012 and 2011 relating to these loans amounted to RMB5.0 million (P32.9 million) and RMB1.5 million (P9.7 million) respectively, and are capitalized as part of Real Estate Inventories (see Notes 11 and 15). 26.9 Financial Guarantees Fil-Dragon obtained a secured interest-bearing loan amounting to RMB92.9 million (P615.7 million) as of 2010 from a local bank in the PRC to support the construction of the Golden Hill Project. In relation to this, Solid Industrial (Shenzhen) Co. Ltd., a related party owned by SGI’s majority stockholders and an individual who holds 30% ownership interest in Fil-Dragon entered into a guarantee contract with the local bank whereby it guarantees that the principal amount and related interests will be paid as the payments fall due. The guarantee contract was terminated during the year as Fil-Dragon fully paid the related obligation, which is two years subsequent to the effectivity of the loan agreement obtained by Fil-Dragon (see Note 15).
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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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53 Mr. Joseph Lim is the Founding C
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55 executive officers Susan L. Tan
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57 Common Lim, Elena S. 1,894 (dire
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59 2. The Company has no transactio
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62 SOLID GROUP, INC. INDEX TO FINAN
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64 INDEX TO EXHIBITS Form 17-A No.
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66 EXHIBIT 18 SUBSIDIARIES OF THE R
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- 2 - Notes 2012 2011 LIABILITIES A
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SOLID GROUP INC. AND SUBSIDIARIES C
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SOLID GROUP INC. AND SUBSIDIARIES C
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SOLID GROUP INC. AND SUBSIDIARIES N
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- 3 - (b) Mergers of Certain Subsid
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- 5 - 2.2 Adoption of New and Amend
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- 7 - (iii) Consolidation Standards
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- 9 - (vii) PAS 32 (Amendment), Fin
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- 11 - (c) PAS 32 (Amendment), Fina
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- 13 - 2.5 Financial Assets Financi
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- 15 - Non-compounding interest and
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- 17 - An item of property, plant a
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Page 154 and 155: A reconciliation of the carrying am
Page 156 and 157: - 47 - The changes in the carrying
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Page 191 and 192: Supplementary Schedules SOLID GROUP
Page 193 and 194: Solid Group Inc. and Subsidiaries S
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Page 197 and 198: SOLID GROUP INC. Schedule I Reconci
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Page 201 and 202: PAS 33 Earnings per Share a PAS 34
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