2020 Annual Report slide image

2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS Group 1 - New customers - existing/related parties (less than 6 months). Group 2 - Existing customers/related parties (more than 6 months). As at December 31, 2020 Less than 1 year MEGACABLE. Between 1 and 2 Between 2 and 5 years years Bank loans $ 459 2020 2019 Interest in banking institutions not accrued Lease liabilities 453,058 1,291,230 2,905,646 623,772 3,453,308 432,605 231,510 Cash in banks and bank deposits short-term $ 4,259,590 $ 2,210,065 Suppliers 3,240,961 Related parties 100,149 Maximum creditworthiness, with minimum credit risk (AAA) $ 4,259,590 $ 2,210,065 Interest collected from related parties Other accounts payable 8,933 1,726,274 218,684 24,523 510,401 66,552 c) Liquidity risk $ 6,821,064 4,004,135 4,462,866 The Group's cash flow projections are prepared by its operating entities, and the information is consolidated by the Group's Management and Finance teams. The Group's Management and Finance teams oversee the updating of the projections regarding liquidity requirements to ensure that there is sufficient cash to meet operational needs and permanently maintain sufficient margins on undrawn lines of credit, in such a way that the Group does not fail to comply with its credit limits or line of credit covenants. Said projections consider debt financing plans, compliance with covenants, compliance with financial reasons based on internal financial information and, where appropriate, applicable regulatory requirements. The cash surplus held by the Group and the surplus balances that exceed the cash required for working capital are transferred to the Group Treasury, which invests the cash surplus in time deposits and negotiable securities, selecting instruments with appropriate maturities or with sufficient liquidity to provide sufficient margins. Cash surpluses may be invested in expanding the facilities generating cash flows, with prior authorization from the Board of Directors. The table below shows the analysis of the Group's financial liabilities classified based on the period between the date of the consolidated statement of financial position and the date of maturity (including unearned interest). The following table has been prepared on the basis of undiscounted cash flows, from the first date that the Group will be required to pay. As at December 31, 2019 Less than 1 year Between 1 and 2 Between 2 and 5 years years Bank loans $ Interest in banking institutions not accrued Lease liabilities 79,922 516,754 132,652 1,945,532 786,590 4,482,315 436,921 266,963 1,436,412 275,534 39,262 916,060 353,972 381,428 94,851 89,828 Suppliers Related parties Interest collected from related parties Other accounts payable $ 3,396,596 3,447,908 5,390,492 The maturity analysis applies only to financial instruments and therefore, does not include the entity's non-financial liabilities, such as tax liabilities. d) Capital risk management The Group's objectives in relation to capital risk management are to safeguard its ability to continue as a going concern, provide shareholder returns and benefits to other stakeholders, and maintain an optimal capital structure to reduce costs. In order to maintain or adjust the capital structure, the Group may vary the amount of dividends to be paid to shareholders, carry out a capital reduction, issue new shares or sell assets, and reduce debt. Like other entities in the industry, the Group monitors its capital structure based on its leverage ratio. This financial ratio is calculated by dividing total liabilities by total capital according to the consolidated statement of financial position. 50
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