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

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The Group’s management considers that all the above financial assets that are not impaired
or past due at the end of each reporting period are of good credit quality.
(a)
Cash and Cash Equivalents, FVTPL and AFS Financial Assets
The credit risk for cash and cash equivalents, FVTPL and AFS financial assets in the
consolidated statements of financial position, is considered negligible, since the
counterparties are reputable banks with high quality external credit ratings.
(b)
Trade and Other Receivables
Except for trade receivables arising from real estate sales, none of the financial assets
are secured by collateral or other credit enhancements. Trade receivables are secured
by industrial lots and condominium units sold to buyers and are covered by postdated
checks.
Some of the unimpaired trade receivables and advances to related parties are past due at the
end of the reporting period. Trade receivables and advances to related parties past due but
not impaired can be shown as follows:
2012 2011 2010
Not more than 3 months P 160,693,790 P 69,088,088 P 162,017,197
More than 3 months but
not more than one year 77,870,120 9,400,170 68,330,159
More than one year 131,075 66,597,236 294,468,345
P 238,694,985 P 145,085,494 P 524,815,701
In respect of trade and other receivables, the Group is not exposed to any significant credit
risk exposure to any single counterparty or any group of counterparties having similar
characteristics. Trade receivables consist of a large number of customers in various industries
and geographical areas. Based on historical information about customer default rates,
management consider the quality of trade receivables that are not past due or impaired to be
good.
29.4 Liquidity Risk
The Group manages its liquidity needs by carefully monitoring scheduled debt servicing
payments for long-term financial liabilities as well as cash outflows due in a day-to-day
business. Liquidity needs are monitored in various time bands, on a day-to-day and
week-to-week basis, as well as on the basis of a rolling 30-day projection. Long-term liquidity
needs for a 6-month and one-year period are identified monthly.
The Group maintains cash to meet its liquidity requirements for up to 60-day periods.
Excess cash is invested in time deposits, mutual funds or short-term marketable securities.
Funding for long-term liquidity needs is additionally secured by an adequate amount of
committed credit facilities and the ability to sell long-term financial assets.