Investor Presentaiton
NOTE 13 STOCKHOLDERS' EQUITY:
In 2009 and 2008, the Company repurchased 889,400 and 31,400 shares, respectively, that were
outstanding in the Mexican Stock Exchange in the amount of Ps11,474 and Ps442, respectively,
generating a capital stock reduction at December 31, 2009 and 2008 of Ps890 and Ps31, respectively.
In addition, during 2009 and 2008, the Company placed 41,000 and 16,000 shares, respectively, which
had been repurchased in prior years. These placements amounted to Ps658 and Ps218, respectively,
generating a capital stock increase of Ps41 and Ps16, respectively.
The Company's subscribed and paid-in capital stock totaled Ps427,782, plus an increase of Ps533,266,
to express the capital stock in modified historical pesos of December 31, 2009, and is represented by
427,509,963 common nominative shares, with no par value.
At the April 2009 Ordinary General Stockholders' Meeting, the stockholders agreed to decree dividends
to the majority stockholders to be paid out from retained earnings in the amount of Ps214,045 and
to the minority stockholders in the amount of Ps145,000 decreed at the April Ordinary General
Stockholders Meeting.
At the April 2008 Ordinary General Stockholders' Meeting, the stockholders agreed to decree dividends
to the majority stockholders to be paid out from retained earnings in the amount of Ps214,179, and to the
minority stockholders in the amount of Ps110,000, decreed at the April Ordinary General Stockholders
Meeting.
Dividends paid are not subject to IT if paid out from the After Tax Earnings Account (CUFIN for its acronym
in Spanish) which balance at December 31, 2009 and 2008 amounting to Ps1,088,227 and Ps1,050,716,
respectively, and will be taxed at a rate that fluctuates between 4.62% and 7.69% if paid out from the
reinvested CUFIN. Dividends paid in excess of this account are taxable at a rate of 42.86%, if paid in
2010. The current tax is payable by the Company and may be credited against IT for the same year or
the following two years or, if applicable, against the Flat Tax (FT) for the period. Dividends paid out from
profits previously taxed for IT purposes are not subject to tax withholding or additional tax payment.
In the event of a capital reduction, the excess of stockholders' equity over capital contributions, totaling
Ps1,299,817 and Ps1,255,014 at December 31, 2009 and 2008, respectively, is accorded the same tax
treatment as dividends.
a.IT
NOTE 14 INCOME TAX (IT) AND FLAT TAX (FT):
Book and tax results differ mainly due to items taxed or deducted over time, differently for book and tax
purposes, due to recognition of the effects of inflation for tax purposes, as well as to items only affecting
either book or tax results.
Based on its financial and tax projections, Company management determined that the tax to be paid in
the future will be IT, and has therefore recognized deferred IT.
IT under the tax consolidation regime:
Grupher has authorization, granted by Ministry of Finance on December 30, 1992, to determine its IT
under the tax consolidation regime, together with its direct and indirect subsidiaries in Mexico, as per
the provisions of the IT Law.
In 2009, the Company determined a tax profit of Ps225,181 (consolidated tax loss of Ps544,081 in 2008),
which exceeds that determined for FT purpose. Consolidated book and tax results differ mainly due
to items taxed or deducted over time, differently for book and tax purposes, due to recognition of
the effects of inflation for tax purposes, as well as to items only affecting either consolidated book or
consolidated tax results.
On December 7, 2009, a decree was published amending, adding to and revoking a number provisions
of the IT Law, as shown below:
a. The IT rate applicable from 2010 to 2012 is 30%, 29% for 2013 and 28% as from 2014. At December
2009, the aforementioned rate change produced an increase to the deferred IT balance of Ps5,404,
with the corresponding effect on income for the year, which was determined based on the expected
reversal of temporary items at the rates in effect at that time.
b. The possibility of using credits for the excess of deductions on taxable income for FT purposes (credit
of tax loss for FT purpsoes) to reduce the IT payable is eliminated, although they can be credited
against the FT base.
c. The tax consolidation regime was modified to require that IT related to the tax consolidation benefits
obtained as from 1999 be paid in installments during the period from the sixth to the tenth year
following that in which said benefits were made use of.
The aforementioned tax consolidation benefits stem from:
i. Tax losses used in tax consolidation that were not authorized on an individual basis by the controlled
company that generated them.
ii. Special consolidation items arising from operations conducted between the consolidating entities,
and that generated benefits.
iii. Losses from the sale of shares not yet deducted individually by the controlled company that
generated those losses.
iv. Dividends distributed by the consolidating controlled companies not paid out from the after tax
earnings account (CUFIN) or reinvested CUFIN.
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