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

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The different levels have been defined as follows:
(a)
(b)
(c)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices);
and,
Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
31. CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES
The Group’s capital management objectives are to ensure the Group’s ability to continue as a
going concern and to provide an adequate return to shareholders by pricing services
commensurately with the level of risk.
The Group monitors capital on the basis of the carrying amount of equity as presented on
the face of the consolidated statements of financial position. The Group’s goal in capital
management is to maintain a debt-to-equity structure ratio of not higher than 1:1 on a
monthly basis.
The following is the computation of the Group’s debt-to-equity ratio:
2012 2011
Total liabilities (excluding advances
from related parties) P 3,164,672,695 P 3,052,705,062
Total equity 9,671,789,880 8,556,482,257
Debt-to-equity ratio 0.33 : 1 0.36 : 1
The Group sets the amount of capital in proportion to its overall financing structure,
i.e., equity and financial liabilities excluding amounts due to related parties. The Group
manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust
the capital structure, the Group may adjust the amount of dividends paid to shareholders,
issue new shares or sell assets to reduce debt.