ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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and corroborating the explanations of the variations with the
administration. Likewise, we evaluated internal processes and
management's ability to accurately carry out projections, including
the approval of these by the Board of Directors.
► We analyzed the projection assumptions used in the impairment
model, specifically including the projections of cash flow, operating
margins, profit margin before financial result, taxes, depreciation
and amortization ("EBITDA") and long-term growth. We test
the mathematical accuracy, completeness, and accuracy of the
impairment model. The valuation specialists performed a sensitivity
analysis for the CGU, independent calculations of the recovery
value to assess whether the assumptions used would need to be
modified and the probability that such modifications would occur.
► We independently evaluated the applicable discount rates,
comparing them with the discount rates used by management.
The results of our procedures were satisfactory, and we agree with
the determination of the recovery value of the CGU and we believe
the assumptions used by management are reasonable.
Information other than the Consolidated Financial Statements and
Auditors' Report thereon
The Company's management is responsible for the additional
information presented. Additional information includes; i) the Annual
Stock Exchange Filing, ii) the information to be incorporated into the
Annual Report that the Company is required to prepare in accordance
with Article 33, section I, subsection b) of Title Four, Chapter One of
the General Provisions Applicable to Issuers and other Participants of
the Stock Market in Mexico and the Instructions that accompany these
provisions (the "Provisions"). It is expected that the Annual Stock
Exchange Filing and the Annual Report to be available for our reading
after the date of this audit report; and iii) other additional information,
which is a measure that is not required by IFRS, and has been
incorporated for the purpose of providing additional explanation to
its investors and main readers of its consolidated financial statements
to evaluate the performance of each of the operating segments and
other indicators on the ability to meet obligations regarding the
Earnings before interest, taxes, depreciation, amortization and asset
impairment ("adjusted EBITDA") of the Company, as well as the
Business Unit Contribution ("BUC"). This information and its definition
are presented in Note 30.
Our opinion of the consolidated financial statements will not cover the
additional information and we will not express any form of assurance
about it.
In connection to our audit of the consolidated financial statements,
our responsibility will be to read the additional information, when
available, and in doing so, consider whether the financial information
contained therein is materially inconsistent with the consolidated
financial statements or with our knowledge obtained during the audit,
or otherwise appears to contain a material error. When we read the
Annual Report, we will issue the declaration on its reading, required
in Article 33, Section I, subsection b), number 1.2. of the Provisions.
Additionally, and in relation to our audit of the consolidated financial
statements, our responsibility is to read and recalculate the additional
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