2020 Annual Report slide image

2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS MEGACABLE. (1) The joint venture presented below has a share capital consisting solely of ordinary shares, which the Group directly owns. Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C. V. (GTAC) obtained a 20-year lease (through a bidding process) for a pair of fiber optic wires maintained by the Federal Electricity Commission and a concession to operate a public telecommunications network in Mexico. The concession will expire in 2030. Nature of joint venture investment as at December 31, 2020 and 2019. As at December 31, 2020 and 2019, the Group recorded the losses of the joint venture until its investment was valued at zero. The unrecognized losses from its participation in GTAC amounted to $45,233 and $64,310, as at December 31, 2020 and 2019, respectively; and the unrecognized accumulated losses amount to $250,621 and $295,855 as at December 31, 2020 and 2019, respectively. The Group has the following subsidiaries in which it participates with 51% and they are included in the consolidation (all are variable capital companies) as at December 31, 2020 and 2019. Entity Name Place of Business Interest % Nature of the Relationship Measurement method Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. Mexico City 33.33 Trunk capacity supplier Equity method Summarized Statement of Financial Position: Current Cash and cash equivalents Other current assets Total current assets Other current liabilities (including accounts payable) Total current liabilities Long-term Assets $ Portion of ordinary shares held by non- controlling interest Portion of preferred shares held by the Group (%) Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. Entity Name Place of Business Nature of the Business Portion of ordinary shares held by shareholders (%) Portion of ordinary shares held by the Group (%) 2020 2019 Myc Red Michoacán Cable system operator 51 51 49 68,614 33,375 Servicio y Equipo en Telefonía Internet y Televisión Michoacán 320,586 554,305 Cable system operator 51 51 49 Corporativo de 389,200 587,680 Comunicación y Redes de GDL Michoacán Fixed asset leasing 51 51 49 124,704 124,704 82,774 82,774 1,558,223 1,410,054 Other liabilities - Total long-term liabilities 2,574,583 2,802,525 Net liabilities $ (751,864) (887,565) Summarized Statement of Comprehensive Income: Income Depreciation and amortization Expenses Finance income Finance expenses Total comprehensive income 330,065 (12,211) (326,119) 358,631 (214,666) (296,137) 86,462 (276,085) 310,355 (17,526) es $ 135,700 (192,931) All subsidiary companies are included in the consolidation. The portion of voting rights in subsidiary companies held directly by the shareholder does not differ from the portion of ordinary shares held. Management considers that the Group has control with 51% of the voting rights. The Group is the majority shareholder with 51% of shares, while the other shareholders individually do not own more than 40% of the capital. There is no record of shareholders who form a group to exercise their vote jointly. The total non-controlling interest in 2020 and 2019 was $170,890 and $162,384, respectively and in stockholders' equity in 2020 and 2019 is $1,392,924 and $1,337,293, respectively. The summarized financial information for each subsidiary that has non-controlling interests that are material to the Group is as follows. 57 57
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