2020 Annual Report slide image

2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS (25) Related parties- a) The main balances with related parties are as follows: b) The following transactions were completed over the course of the year: MEGACABLE. Entity Type of relationship Line item 2020 2019 Entity Long-term accounts receivable: Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. (GTAC) (1) Joint venture Loan granted $ 978,473 1,151,542 Type of relationship Line item 2020 2019 Accounts payable: Altán Redes, S. A. P. I. de C. V. Grupo de Telecomunicaciones de Alta Capacidad, S. A. P. I. de C. V. (GTAC) Grupo de Telecomunicaciones de Alta Capacidad, S. A. P. I. de C. V. (GTAC) Grupo de Telecomunicaciones de Alta Capacidad, S. A. P. I. de C. V. (GTAC) Joint venture Service revenues $ 370,870 273,038 Joint venture Maintenance 109,044 100,317 Joint venture Interest income 89,148 119,465 Joint venture Interest expenses 59,134 59,469 Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. (GTAC) (2) Joint venture Lease Minus short-term accounts payable Total long-term accounts payable es $ 829,234 1,010,934 The goods are acquired from the joint venture under regular commercial terms and conditions. Compensation of key personnel (100,149) (275,534) 729,085 735,400 Key personnel include directors and members of the Executive Committee. Compensation paid or payable to these executives for their services is as follows: (1) The long-term account receivable as at December 31, 2020 and 2019 is originated by a current account loan granted to its joint venture GTAC, for up to USD 20 million. The loan is due on December 31 2030 and accrues monthly interest at the 28-day interbank rate plus two percentage points. The effective rate as at December 31, 2020 and 2019 was 6.72% and 10.34%, respectively. As at December 31, 2020 and 2019, the fair value of the account receivable is $877,043 and $957,515, respectively, and is at level 2 of fair value. The account payable for leases as at December 31, 2020 and 2019, corresponds to the contract entered into for the provision of capacity for telecommunications services with GTAC executed on August 1, 2012. Said contract specifies that the Group will make annual payments of $41,400 over the next 18 years, that will be increased annually through the National Consumer Price Index (CPI). The contract also establishes that the payments corresponding to years 10 through 18 can be paid in advance. In addition, this account payable corresponds to the financial lease additions acquired by a Group subsidiary, which is paid at 10 years, according to the present calculation value. See Note 17. The implicit annual interest rate determined for the payments that the Group will make will be TIIE plus 1.22 percentage points or 6%, whichever is less. In 2020 and 2019 the effective rate was 6.0%. The fair value as at December 31, 2020 and 2019 of the account payable is $671,688, and $885,842, respectively. Said fair value is based on discounted cash flows using the discount rate calculated by Management and are within level 2 in the fair value hierarchies. Short-term benefits Termination benefits d) Loans to related parties Total loans to related parties (1): As at January 1 Loans granted in the year Loan collections Interest collected Interest charged $ 2020 2020 73,094 25,867 98,961 2019 2019 67,488 5,017 72,505 1,151,542 100,359 1,086,983 204,442 (205,454) (139,875) (157,122) (119,473) 89,148 119,465 As at December 31 $ 978,473 1,151,542 1) See subsection a).1) above. 74
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