Indicate by check mark whether the registrant files
or will file annual reports under cover Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
1. General Information
A. Incorporation and Operations
AENZA S.A.A., (hereinafter the “Company”
or “AENZA”) is the parent of the AENZA Corporation that includes the Company and its subsidiaries (hereinafter, the “Corporation”)
and is mainly engaged in its investments in the different companies of the Corporation. In addition, the Company provides strategic and
functional services and office leases to the companies of the Corporation. The Company registered office is at Av. Petit Thouars n.o
4957, Miraflores, Lima.
The Corporation is a conglomerate of companies
whose operations encompass different business activities such as engineering and construction, energy, infrastructure (public concession
ownership and operation) and real estate business. See details of the Corporation’s operating segments in Note 7.
B. Authorization for the Financial Statements Issuance
The consolidated financial statements for the
year ended December 31, 2022 have been prepared and issued with authorization of Management and approved by the Board of Directors on
May 15, 2023 and will be presented for consideration and approval to the General Shareholders’ Meeting that will be held within
the terms established by Law. In Management’s opinion, the financial statements as of December 31, 2022, will be approved without
any modifications.
The consolidated financial statements for the
year ended December 31, 2021 were prepared and issued with the authorization of Management and approved by the Board of Directors on March
4, 2022 and were approved by the General Shareholders’ Meeting on March 31, 2022.
As indicated in note 2.AA, from the date the financial
statements for the year ended December 31, 2021 were submitted to the shareholders for approval, the Company revised the balances
previously presented as of December 31, 2021.
The revised consolidated financial
statements for the year ended December 31, 2021 have been prepared and issued with the authorization of Management and the Board of
Directors on May 15, 2023 and will be submitted for consideration and approval by the General Shareholders’ Meeting to be
convened promptly.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
C. Compliance
with laws and regulations
The Company is involved in a series of criminal
investigations conducted by the Public Ministry of Peru and administrative proceedings conducted by the National Institute for the Defense
of Competition and Protection of Intellectual Property (INDECOPI, for its Spanish Acronym) based on events that occurred between years
2003 and 2016. Such situations led to significant changes in the Company’s corporate governance structure, the opening of independent
investigations and the adoption of measures to address and clarify these situations.
Criminal investigations derived from projects
developed in partnership with companies of the Odebrecht Group
In connection with the Lava Jato case, the Company
participated as a minority partner in six infrastructure projects with Odebrecht Group, directly or through its subsidiaries, in entities
or consortia. The resulting contingency from these proceedings has been determined in the Final Collaboration and Benefits Agreement (“the
Agreement”) signed with the Peruvian Public Prosecutor’s Office and Attorney General’s Office and includes the following
projects: IIRSA Sur Tranches 2 and 3, IIRSA Norte, the Electric Train Construction Project (Tranches 1 and 2) and Gasoducto Sur Peruano
(GSP)
Criminal investigations in relation to the
Construction Club case
Cumbra Peru S.A. has been included, along with
other construction companies, in the criminal investigation that the Public Ministry of Peru has been carrying out for the alleged crime
of corruption of officials in relation to the so-called ‘Construction Club’. The resulting contingency from these proceedings has been
determined in the Agreement with the Peruvian Public Prosecutor’s Office and the Attorney General’s Office.
Moreover, at the end of February 2020, the Public
Ministry of Peru requested Unna Transporte S.A.C., be included in such criminal investigation. That request was approved in October 2021.
Just like other executives of other construction companies, a former commercial manager of Cumbra Peru S.A., a former president of the
Board of Directors, a former Director, and the former Corporate General Manager of the Company have been included in these criminal investigations.
The Company’s Management cannot guarantee
the finding nor rule out the possibility of authorities or third parties finding additional adverse evidence not currently known with
respect to other projects executed during the period under investigation. If applicable, these new facts could be included in the Agreement
entered into with the Peruvian Public Prosecutor’s Office and the Attorney General’s Office.
Final Plea Agreement
On May 21, 2021, the Company entered into an Agreement
with the Special Team of Peruvian prosecutors who are committed to full dedication to the knowledge of investigations related to corruption
offenses of officials and related personnel, in which the company Odebrecht and others would have incurred (the “Prosecutor’s
Office”) and with the ad hoc Public Prosecutor’s Office for investigations and processes related to crimes corruption of officials,
money laundering and related activities allegedly committed by the Odebrecht company and others (the “Attorney General’s Office”).
On September 15, 2022, the Agreement was entered
into between the Peruvian Public Prosecutor’s Office, the Attorney General’s Office and the Company, whereby AENZA S.A.A.
accepted they were utilized by certain former executives to commit illicit acts in a series of periods until 2016, and committed to pay
a civil compensation to the Peruvian Government of approximately S/ 488.9 million (approximately S/ 333.3 million and US$ 40.7 million,
respectively) calculated according to the formulae established by Law 30737.
According to the Agreement, payment shall be
made within twelve (12) years at a legal interest rate in soles and dollars (3% and 1% annual interest as of December 31, 2022,
respectively). The Company also undertakes to establish a series of guarantees after the approval (by which the judge verify that
the agreement are in accordance with Law) of the Agreement, composed of i) a trust agreement that includes shares issued by a
subsidiary of the Company, ii) mortgage on a property owned by the Company, and iii) a guarantee account with funds equivalent to
the annual installment for the following year. Among other conditions, the Agreement includes a restriction for AENZA S.A.A. and
subsidiaries Cumbra Peru S.A. and Unna Transporte S.A.C. to participate in public construction and road maintenance contracts for 2
years from the approval of the Agreement. The other member companies of the Corporation are not subject to any impediment or
prohibition to contract with the Peruvian Government. As of December 31, 2022, the Company recognized in its financial statements
the total liabilities associated to the Agreement for S/488.9 million (Note 21.a) recognizing an expense of S/258.3 million under
“Other Income and Expenses” and an exchange difference income of S/9.5 million under “Financial Expenses” in
2022 (Note 26.A) (As of December 31, 2021, the balance is S/240.1 million).
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
As of December 31, 2022, and as of the reporting
date of the consolidated financial statements, in the opinion of the Company’s Management and legal advisors, the civil compensation
covers the total contingency to which the Company is exposed to as a result of the investigations revealed since 2017. Nevertheless, the
Agreement enforceability is subject to court approval and its terms and conditions are subject to confidentiality provisions.
Investigations and administrative process initiated
by INDECOPI in relation to the Construction Club case
On July 11, 2017, the INDECOPI initiated an investigation
against several Peruvian construction companies (including Cumbra Peru S.A.), about the existence of an alleged cartel called the Construction
Club.
On February 11, 2020, the subsidiary Cumbra Peru
S.A. was notified by the Technical Secretariat (the “TS”) of the Free Competition Defense Commission of INDECOPI with the
resolution that begins a sanctioning administrative procedure involving a total of 35 companies and 28 natural persons, for alleged anticompetitive
conduct in the market of Public Works.
On November 17, 2021, the Commission imposed a
fine of approximately S/67 million against Cumbra Peru S.A., which is currently being challenged and is pending of resolution by the final
administrative instance within the INDECOPI Court. As of December 31, 2022, Cumbra Peru S.A. recorded an provision amounting to S/52.4
million (as of December 31, 2021 a present value equivalent to S/52.6 million was recorded).
Investigations and administrative process initiated
by INDECOPI in relation to the labor recruitment market
On February 7, 2022, Cumbra Peru S.A. and Unna
Transporte S.A.C. were notified with Resolution 038-2021/CLC-INDECOPI, by means of which the National Directorate of Research and Promotion
of Free Competition of INDECOPI decided to initiate an administrative sanctioning procedure regarding the alleged horizontal collusive
practice in the modality of concerted sharing of suppliers in the market of hiring workers in the construction sector at national level
from 2011 to 2017.
On April 7, 2022, Cumbra Peru S.A. and Unna Transporte
S.A.C. proposed a cease-and-desist agreement for the early termination of the sanctioning administrative procedure, where they (i) accepted
the alleged conduct, (ii) committed to comply with a free competition rules compliance program during years 2022, 2023, and 2024, and
(iii) committed to paying a compensation amounting to S/ 2.7 million in two installments (the first one within 60 days after the notification
of the Resolution approving the cessation undertaking and the second one within 12 months). By means of Resolution 054-2022/CLC-INDECOPI
dated August 19, 2022, the INDECOPI approved the proposed cease-and-desist agreement and concluded the sanctioning procedure.
2. Basis of Preparation and Significant Accounting Policies
Significant accounting policies applied to prepare
the consolidated financial statements are detailed below. These policies have been applied consistently to all years presented in these
financial statements; unless otherwise indicated.
Going concern
basis of accounting
Management continues to have a reasonable expectation
that the Corporation has adequate resources to continue in operation for a reasonable period of time and that the going concern basis
of accounting remains appropriate. Following the Post Covid stabilization process initiated in 2021, the Corporation was able to regain
operational control of all its operations in 2022. As of December 31, 2022 AENZA’s consolidated backlog amounted to S/5,327.6 million
(US$1,394.7 million). Corporation believes that backlog provides visibility for potential growth in the coming years and that is strategically
targeted to key end-markets such as mining, infrastructure, power, energy and real estate. As a leading Peruvian conglomerate in Infrastructure,
Energy, Real Estate, and Engineering & Construction segments with a diversified and difficult-to-replicate portfolio of best-in-class
assets and an attractive growth strategy, the Corporation is well-positioned to capitalize upon the significant infrastructure deficit
and other business opportunities in Latin America.
For the year ended 2022, the Corporation’s current assets as of December 31, 2022 were S/2,792 million and the Corporation’s cash and cash equivalents were S/917.6 million.
As of December 31, 2022, Corporation had a total outstanding indebtedness of S/1,690.7 million (US$442.6 million). In 2022, the Corporation
recognized a loss of the year of S/362.1 million, which were affected primarily by non-recurring costs in relation to past projects in
the E&C segment and the provision related to the Plea Agreement signed on September 15, 2022. For the year ended December 31, 2022,
the Company recognized in its financial statements the total liabilities associated with the Plea Agreement recognizing an expense of
S/258.3 million. In this sense, AENZA is committed to pay a civil compensation to the Peruvian Government of approximately S/488.9 million.
Additionally, on March 17, 2022, the Corporation entered into a bridge loan credit agreement for up to US$120 million that matures in
October 2023.
The appropriateness of the going concern basis
of accounting is dependent on the continued availability of borrowings. Management has the ability to take the following mitigation actions
to preserve liquidity and optimize the Group’s cash flow:
| - | Reducing non-essential capital expenditures and deferring
or cancelling discretionary spend; |
| - | Financial restructuring, including a short-term and long-term
structural solutions and capital increase. |
Based on these factors, Management has a reasonable expectation that
the Corporation has adequate resources headroom.
A. Basis of preparation
i. Basis of accounting
The consolidated financial statements
of the Company and its Subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by
the International Accounting Standard Board (IASB) effective as of December 31, 2022.
ii. Basis of measurement
These consolidated financial
statements have been prepared on the historical cost basis, according to the Corporation’s accounting records, except for derivative financial
instruments and investment property, which are measured at fair value.
iii. Responsibility for the information
The information contained in these financial statements
is the responsibility of the Management of the Corporation that expressly states that all the principles and criteria included in the
IFRSs as issued by the IASB, effective as of December 31, 2021 and 2022, have been applied.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
iv. Functional and presentation currency
These consolidated financial
statements are presented in soles (S/), which is the Corporation’s functional currency. All amounts have been rounded to the nearest
thousand, unless otherwise indicated. The functional currencies of the Subsidiaries domiciled in Chile and Colombia are CLP (Chilean Pesos)
and COP (Colombian Pesos), respectively.
v. Use of judgments and estimates
In preparing these consolidated financial statements,
Management has made judgments and estimates that affect the application of the accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognized prospectively.
Judgments
Information about judgments made in applying accounting
policies that have the most significant effects on the amounts recognized in the consolidated financial statements is included in the
following notes:
| ■ | Revenue
recognition: identification of performance obligations and determination of revenue recognition at a point in time (Note 2.W). |
| ■ | Lease
term: whether the Company and its Subsidiary are reasonably certain to exercise extension options in leases (note 2.Y). |
| ■ | Estimate
of current tax payable and current tax expense in relation to an uncertain tax treatment (Note 2.R). |
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties
as of December 31, 2021 and 2022, that have a significant risk of resulting in a material adjustment to the carrying amounts of assets
and liabilities is included in the following notes:
| ■ | Measurement
of expected credit losses (ECL) allowance for trade receivables and contract assets: (Note 2.I); |
| ■ | Recognition
and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources (Note
2.T); |
| ■ | Recognition
of deferred tax assets: availability of future taxable profit against which deductible temporary differences and tax losses carried forward
can be utilized in previous periods (Note 2.R); |
| ■ | Allowance
for inventory obsolescence (Note 2.J); |
| ■ | Allowance
for useful lives and residual values of property, plant, and equipment (Note 2.L). |
Measurement of fair values
A number of the Corporation’s accounting
policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
The Company has an established control framework
with respect to the measurement of fair values. If third party information, such as broker quotes or pricing services, is used to measure
fair values, then the Company assesses the evidence obtained from the third parties to support the conclusion that these valuations meet
the requirements of IFRS, including the level in the fair value hierarchy in which the valuations should be classified. The Company regularly
reviews significant unobservable inputs and valuation adjustments.
When measuring the fair value of an asset or a
liability, the Corporation uses observable market data as far as possible. Fair values are categorized into different levels in a fair
value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: |
Measurement based on quoted prices in active markets for identical assets or liabilities. |
|
|
Level 2: |
Measurement based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Level 3: |
Measurement based on inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs, generally based on internal estimates and assumptions of the Corporation). |
If the inputs used to measure the fair value of
an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its
entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Corporation recognizes transfers
between levels of the fair value hierarchy at the end of the reporting period during the period which the change occurred.
B. Consolidation of financial statements
i. Subsidiaries
The Company ‘controls’ an entity when
it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from
the date on which control commences until the date on which control ceases.
Business acquisition-related costs are expensed
as incurred. Balances, income, and expenses from transactions between Corporation companies are eliminated. Profits and losses resulting
from inter-group transactions that are recognized as assets are also eliminated.
ii. Business Combinations
The Corporation accounts for business combinations
using the acquisition method when control is transferred to the Corporation. The consideration transferred in the acquisition is generally
measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain
on a bargain purchase is recognized in profit or loss immediately. Transaction costs are expensed as incurred.
iii. Non-controlling interests
For each business combination,
the Corporation shall select between measuring the non-controlling interests in the acquiree at fair value or at their proportionate share
of the acquiree’s identifiable net assets at the acquisition date. Changes in the Corporation’s interest in a subsidiary that
do not result in a loss of control are accounted for as equity transactions.
iv. Associates
Associates are those entities in which the Corporation
has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement
in which the Corporation has joint control, whereby the Corporation has rights to the net assets of the arrangement, rather than rights
to its assets and obligations for its liabilities.
Interests in associates and the joint venture
are accounted for using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial
recognition, the consolidated financial statements include the Corporation’s share of the profit or loss and OCI of equity-accounted
investees, until the date on which significant influence or joint control ceases.
v. Joint arrangements
Under IFRS 11, investments in joint arrangements
are classified as either a joint operation or as a joint venture depending upon each investor’s rights and obligations arising from the
arrangement. The Corporation has assessed the nature of its joint arrangements and determined that they are joint ventures.
Joint ventures are accounted for using the equity
method. Under the equity method, interest in joint ventures is initially recognized at cost and adjusted thereafter to recognize the Corporation’s
share of post-acquisition profits and losses, as well as movements in other comprehensive income. When the Corporation’s share in
the losses of a joint venture equals or exceeds its interest in such joint venture (including any long-term share that is substantially
part of the Corporation’s net investment in the joint venture), the Corporation does not recognize additional losses, unless it
has assumed obligations or made payments on behalf of the joint ventures.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Unrealized gains on transactions between the Corporation
and its joint ventures are eliminated to the extent of the Corporation’s interest in such joint ventures. Unrealized losses are
also eliminated, unless the transaction provides evidence of an impairment of the transferred asset. Gains arising from the application
of the equity of accounting method are recognized in the consolidated statement of profit or loss and other comprehensive income.
In the Corporation, joint operations mainly relate
to consortia (entities without legal personality) created for the development of construction contracts. Considering that the only objective
of this type of consortium is to develop a specific project, all revenue and costs are included within revenue from construction activities
and cost of construction activities, respectively.
vi. Changes in ownership interest in a subsidiary that do not result in a loss of control
Transactions with non-controlling shareholders
that do not result in loss of control are accounted for as equity transactions, i.e. as transactions with owners in their capacity as
owners. The difference between the fair value of any consideration paid and the relevant share acquired of the carrying amount of net
assets of the subsidiary is recorded in equity. Gains or losses on disposals of shares to non-controlling shareholders are also recorded
in equity at the time of disposal.
vii. Disposal of subsidiaries
When the Corporation loses control of a subsidiary,
any interest retained in said entity is remeasured at its fair value at the date it loses control of the subsidiary, and any change in
respect to the carrying amount is recognized in profit or loss. Subsequently, said fair value is considered the initial carrying amount
for purposes of accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognized in other comprehensive income in respect of that entity are accounted for as if the Corporation had directly disposed of the
related assets or liabilities. This means that the amount previously recognized in other comprehensive income could be reclassified to
profit or loss for the year.
viii. Transactions eliminated on consolidation
Intra-group balances and transactions, and any
unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with
equity-accounted investees are eliminated against the investment to the extent of the Corporation’s interest in the investee. Unrealized
losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
C. Foreign currency translation
i. Functional and presentation currency
These consolidated financial statements are presented
in soles (S/), which is the Corporation’s functional and presentation currency. All subsidiaries, joint arrangements, and associates
use the Peruvian sol as their functional currency, except for foreign subsidiaries, for which the functional currency is the currency
of the country in which they operate.
ii. Transactions and balances
Transactions in foreign currency are translated
into functional currency at the exchange rates at the dates of the transactions or the valuation date in the case of items that are remeasured.
Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the statement of profit or loss,
except when deferred in other comprehensive income. Foreign exchange gains and losses of all monetary items are included in the statement
of other comprehensive income under ‘Exchange difference, net’.
Exchange differences arising from foreign currency
loans granted by the Company to its subsidiaries are recognized in profit or loss both in the consolidated financial statements of the
Company and in the separate financial statements of the subsidiaries. In the consolidated financial statements, such exchange differences
are recognized in other comprehensive income and are reclassified to profit or loss in the event of the disposal of the subsidiary or
debt repayment to the extent such loans qualify as part of the “net investment in a foreign operation.”
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
iii. Corporation companies
The results and financial position of the Corporation
entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the Corporation’s
presentation currency are translated into the presentation currency as follows:
| (i) | assets and liabilities for each statement of financial position
are translated at the closing rate at the date of that consolidated statement of financial position; |
| | |
| (ii) | income and expenses for each statement of profit or loss are
translated at the average exchange rate (unless this average is not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are translated at the rate prevailing on the date of the transaction); |
| | |
| (iii) | capital is translated by using the historical exchange rate
for each capital contribution made; and |
| | |
| (iv) | all resulting exchange differences are recognized as separate
components in other comprehensive income, under ‘Translation of net investment in foreign operations’. |
Goodwill and fair value adjustments arising from
the acquisition of a foreign operation are treated as assets and liabilities of the foreign entity and are translated at the closing exchange
rate. Exchange differences are recognized in other comprehensive income.
D. Operating segments
Operating segments are reported in a manner consistent
with the internal reporting provided to the Corporation’s Management.
If there are changes in the internal organization
in a manner that causes the identification of operating segments to change, the Corporation shall restate the comparative information
for earlier periods unless the information is not available.
E. Public service concessions
Concession agreements entered into between the
Corporation and the Peruvian government whereby the Corporation, acting in its capacity as concessionaire, assumes obligations for the
construction and improvement of infrastructure, and which qualify as public service concessions are accounted as defined by IFRIC 12 Service
Concession Arrangements. Under these arrangements, the government controls and regulates the infrastructure services provided by the
Company and establishes to whom these services are to be provided and at what prices. The concession agreement establishes the obligation
to return the infrastructure to the grantor at the end of the concession term or when there is any expiration event. This feature gives
the grantor the control over the risks and rewards of the residual value of the assets at the end of the concession term. For this reason,
the Company will not recognize infrastructure as part of its premises, plant, and equipment. The consideration to be received from the
Peruvian government for public infrastructure construction or improvement activities is recognized as a financial asset, intangible asset,
or both, as set forth below:
i. | It is recognized as a financial asset to the extent that
it has an unconditional contractual right to receive cash or another financial asset either because the government guarantees to pay
specified or determinable amounts or because the government covers the shortfall between the amounts received, as concessionaire, from
users of the public service and specified or determinable amounts. These financial assets are initially recognized at fair value, and,
subsequently, at amortized cost (financial asset model). |
ii. | It is recognized as an intangible asset to the extent that
the agreement provides the Corporation with a contractual right to charge users for public services rendered. The resulting intangible
asset measured at cost is amortized as described in Note 2.M (intangible asset model). |
iii. | It is recognized as a financial asset and an intangible asset
when the Corporation is paid partly by a financial asset and partly by an intangible asset (bifurcated model). |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
F. Financial instruments
i. Recognition and initial measurement
Trade accounts receivable are initially recognized
when they are originated. All other financial assets and financial liabilities are initially recognized when the Corporation becomes a
party to the contractual provisions of the instrument.
A financial asset (unless it is a trade account
receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not
measured at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. An
account receivable without a significant financing component is initially measured at the transaction price.
ii. Classification and subsequent measurement
On initial recognition, assets are classified
as measured at amortized cost or Fair Vale Through Profit and Loss (“FVTPL”). The classification depends on the purpose for
which the financial assets were acquired based on the Company’s business model for managing the financial assets and the characteristics
of the contractual cash flows of the financial asset.
Management determines the classification of its
financial assets at the date of initial recognition and reevaluates this classification as of the date of each consolidated financial
statement closing. As of December 31, 2021 and 2022, the Company only holds financial assets at amortized cost.
A financial asset is measured at amortized cost
if both of the following conditions are met and is not measured at FVTPL:
| - | It is held within a business model whose objective is to hold the financial assets to collect contractual
cash flows; and |
| | |
| - | Its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. |
All financial assets not classified as measured
at amortized cost or fair value through other comprehensive income as described above are measured at FVTPL. This includes all derivative
financial assets that are not cash flow hedge. On initial recognition, the Corporation may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortized cost or at fair value through other comprehensive income as at FVTPL if doing
so eliminates or significantly reduces an accounting mismatch or recognition that would otherwise arise.
Subsequent measurement and gains and losses:
Financial assets at FVTPL |
These assets are subsequently measured at fair
value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
|
|
|
Financial assets at amortized cost |
These assets are subsequently measured at amortized
cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains
and losses, and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
|
|
|
Debt investments at FVOCI |
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
The Corporation classified its financial assets
at amortized cost.
Financial liabilities are classified as measured
at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative
or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses,
including any interest expense, and are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized
cost using the effective interest method. Interest income and foreign exchange gains and losses are recognized in profit or loss. Any
gain or loss on derecognition is also recognized in profit or loss.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
iii. Derecognition
Financial assets
The Corporation derecognizes a financial asset when the contractual
rights to the cash flows from financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control over the transferred asset.
The Corporation enters into transactions whereby
it transfers assets recognized in its consolidated statement of financial position, but retains either all or substantially all of the
risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.
Financial liabilities
The Corporation derecognizes a financial liability
when its contractual obligations are discharged or canceled, or expire. The Corporation also derecognizes a financial liability when its
terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based
on the modified terms is recognized at fair value.
On derecognition of a financial liability, the
difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities
assumed) is recognized in profit or loss.
iv. Offsetting
Financial assets and financial liabilities are
offset, and the net amount presented in the consolidated statement of financial position when, and only when, the Corporation currently
has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and
settle the liability simultaneously.
v. Derivative financial instruments and hedge accounting
The Corporation considers a financial asset to
be nonperforming when contractual payments are more than 365 days past due. However, in certain cases, the Corporation may consider a
financial asset to be nonperforming when internal or external information indicates that it is unlikely that the contractual amounts due
will be received before the Corporation executes the guarantees received. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.
Derivatives are initially measured at fair value.
Subsequent to initial recognition, derivative financial instruments are measured at fair value, and changes therein are generally recognized
in profit or loss. The Corporation designates certain derivatives as hedging instruments to hedge the variability in cash flows associated
with highly probable forecast transactions arising from changes in foreign exchange rates and interest rates.
At inception of designated hedging relationships,
the Corporation documents the risk management objective and strategy for undertaking the hedge. The Corporation also documents the economic
relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging
instrument are expected to offset each other.
As of December 31, 2021 and 2022, the Corporation
does not hold derivative financial instruments.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial
Statements
December 31, 2021 and 2022
G. Impairment
i. Financial assets
Financial instruments
and contract assets
The Corporation considers a financial asset to
be nonperforming when contractual payments are more than 365 days past due. However, in certain cases, the Corporation may consider a
financial asset to be nonperforming when internal or external information indicates that it is unlikely that the Corporation will receive
the contractual amounts due before the Company executes the guarantees received. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.
IFRS 9 Financial Instruments requires that
expected credit losses be recorded for all financial assets, except those carried at FVTPL, estimating them over twelve months or over
the lifetime of the financial instrument (“lifetime”). Under this standard, the Company applies the general approach for trade
and other accounts receivable, which requires assessing whether credit risk has significantly increased to determine whether the loss
shall be estimated based on 12 months after the reporting date or during the lifetime of the asset.
Loss allowances for trade
receivables are always measured at an amount equal to lifetime expected credit loss (“ECL’s”). When determining whether
the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Corporation considers
reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Corporation’s historical experience and informed credit assessment, loss of the
time value of money and individual analysis of the clients (considering their geographical location).
At each reporting date,
the Corporation assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial
asset is credit-impaired includes the following observable data:
| ■ | significant financial difficulty of the issuer
or debtor; |
| ■ | a breach of contract such as a default or being
more than 90 and 180 days past due; |
| ■ | it is probable that the debtor will enter bankruptcy
or other financial reorganization; or |
| ■ | the disappearance of an active market for a security
because of financial difficulties. |
For financial assets
for which the Company has no reasonable expectation of recovering either all or a portion of the outstanding amount, the gross carrying
amount of the financial asset is reduced. This is considered a (partial) derecognition of the financial asset.
The gross carrying amount
of a financial asset is written off when the Corporation has no reasonable expectations of recovering a financial asset in its entirety
or a portion thereof. For individual customers and for corporate customers, the Corporation individually makes an assessment with respect
to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Corporation expects no significant
recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities
in order to comply with the Corporation’s procedures for recovery of amounts due.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
ii. Non-financial assets
At each reporting date,
the Corporation reviews the carrying amounts of its non-financial assets (other than investment property, inventories and deferred tax
assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable
amount is estimated. Goodwill and intangible assets with an indefinite useful life are tested annually for impairment.
For impairment testing,
assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent
of the cash inflows of other assets or Cash Generating Unit’s (“CGU”). Goodwill arising from a business combination
is allocated to CGU or group of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the
greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted
to their present value using an after-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or CGU. An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are
recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to
reduce the carrying amounts of the other assets in the CGU on a pro rata basis.
An impairment loss in
respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss
had been recognized.
H. Cash and cash equivalents
In the consolidated statement of financial position
and cash flows, cash and cash equivalents include cash on hand, demand deposits with banks, other highly liquid investments with maturities
of three months or less and bank overdrafts. In the consolidated statement of financial position, bank overdrafts are included in the
balance of other financial liabilities as current liabilities.
I. Trade accounts receivable
Trade accounts receivable are amounts due from
customers for goods or services sold by the Corporation. If any trade account receivable is expected to be collected within one year,
it is classified as current; otherwise, it is classified as non-current.
Trade accounts receivable are initially recognized
at transaction value, and subsequently, they are measured at amortized cost using the effective interest method, less any provision for impairment,
except for trade accounts receivable of less than one year that are recorded at face value which is similar to their fair values due to
their short-term maturity.
It includes Management’s estimates corresponding
to collection rights for services performed but not yet invoiced and/or approved by client, which have been valued using the percentage
of completion method. It corresponds mainly to the Engineering and Construction segment (subsidiaries Cumbra Peru S.A. and Cumbra Ingenieria
S.A.). In the Infrastructure segment, concerning concessions, it corresponds to future collections for public services, mainly represented
by unconditional contractual rights to be received from the Grantor under the financial asset model (Note 2.E)
J. Inventories
The inventories include land, work-in-progress
and finished buildings related to the real estate activity, materials used in the construction activity, and supplies traded as part of
the exploration and extraction activity.
i. Real Estate Activity
Land used for the execution of real estate projects
is recognized at acquisition cost. Work-in-progress and finished real estate include the costs of design, materials, direct labor, borrowing
costs (directly attributable to the acquisition, construction, production of the qualifying asset), other indirect costs, and general
expenses related to the construction.
The lands used for real estate projects with launch date in future
periods are presented as non-current asset.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Net realizable value is the estimated selling
price in the ordinary course of business, less applicable selling expenses. Annually, the Corporation reviews whether inventories have
been impaired identifying three groups of inventories to measure their net realizable value: i) land bought for future real estate projects
which are compared to their appraisal value, if the acquisition value is higher, a provision for impairment is recognized; ii) land under
construction: in this case impairment is measured based on cost projections; if these costs are higher than selling prices of each real
estate unit, an estimate for impairment is recorded; and iii) finished real estate units: these inventory items are compared to the selling
prices less commercialization costs; if they are higher, a provision for impairment is recorded.
For the reductions in the carrying amount of these
inventories to their net realizable value, a provision is recognized for impairment of inventories with a charge to profit or loss for
the year in which those reductions occur.
ii. Exploration and extraction activities
Inventories are valued at the lower of
production costs and net realizable value (“NRV”), on the basis of the weighted average method. The NRV represents the
value at which it is estimated to realize oil, gas and its derivatives LPG and Saturated Acyclic Hidrocarbons, which is calculated
on the basis of international prices less the discounts usually granted. Miscellaneous supplies, materials, and spare parts are
valued at the lower of cost and replacement value, based on the average method. The cost of inventories excludes financing expenses
and exchange differences. Inventories in transit are recorded at cost, using the specific identification method.
The Corporation registered a provision for materials
impairment to profit and loss for the cases in which book value exceeds recoverable value.
iii. Other activities
Materials and supplies are recorded at the lower
of cost (by the weighted average method) and their replacement cost. The cost of these items includes freight and non-refundable applicable
taxes.
Impairment of these items is estimated on the
basis of specific analyses performed by Management on their turnover. If it is identified that the carrying amount of inventories of materials
and supplies exceeds their replacement value, the difference is charged to profit or loss in the period in which this situation is determined.
Management considers that, as of the date of the
consolidated financial statements, it is not necessary to record provisions additional to those recognized in the financial statements
to cover losses due to obsolescence of these inventories.
K. Investment properties
Investment properties are shown at cost less their
accumulated depreciation and impairment losses, if any. Subsequent costs attributable to investment properties are capitalized only if
it is probable that future economic benefits will flow to the Company and the cost of these assets can be measured reliably; otherwise,
they are recognized as expenses when incurred.
Maintenance and repair expenses are recognized
in profit or loss in the period when they are incurred. If the carrying amount of a property is greater than its estimated recoverable
amount, it is immediately reduced to its recoverable amount.
Depreciation is calculated under the straight-line
method at a rate that is considered sufficient to absorb the cost of assets at the end of the useful life and considering their significant
components, with substantially different useful lives (each component is accounted for separately for depreciation purposes and is depreciated
over its separate useful life). The estimated useful lives of those properties range from 5 to 50 years.
These investment properties have been leased under
operating leases to third parties.
L. Property, plant, and equipment
i. Recognition and measurement
These assets are stated at historical cost less
accumulated depreciation and accumulated losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition
of these items.
Assets under construction are capitalized as a
separate component. Upon completion, the cost of these assets is transferred to their definitive category. Replacement units are assets
whose depreciation begins when units are installed for use within the related asset.
ii. Subsequent expenditure
Subsequent expenditures are included in the carrying
amount of the asset or they are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits
will flow to the Corporation, or are likely to extend the estimated useful life of the asset, and the cost of these assets can be measured
reliably. Maintenance and repair expenses are presented in the consolidated statement of profit or loss in the period when incurred.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
iii. Depreciation
Depreciation is calculated using the straight-line
method based on the estimated useful life of the asset. The estimated useful lives are as follows:
|
Years |
Buildings and premises |
3 to 50 |
Machinery and equipment |
2 to 20 |
Vehicles |
2 to 10 |
Furniture and fixtures |
2
to 10 |
Other equipment |
2 to 10 |
Depreciation of machinery and equipment, and vehicles
recognized as “Major equipment” is calculated based on their hours of use. Under this method, the total number of hours that
the machinery and equipment can operate is estimated and an hourly value is established.
The residual value and the useful life of an asset
are reviewed and adjusted, if necessary, at year-end. Profit or loss for the sale of assets are recognized in ‘Other income and
expenses’ in the statement of profit or loss. Regarding joint operations that carry out construction activities,
the difference between the proceeds from disposals of fixed assets and their carrying amount is shown within ‘Revenue from construction
activities’ and ‘cost of construction activities’, respectively.
M. Intangible assets
i. Goodwill
Goodwill arises on the acquisition of subsidiaries
and represents the excess of the purchase consideration, the amount of any non-controlling interest in the acquiree and the acquisition-date
fair value of the acquirer’s previously held equity interest in the acquiree over the fair value of the net identifiable assets.
If the purchase consideration, the amount of any non-controlling interest in the acquiree, and the fair value of the acquirer’s
previously held equity interest in the acquiree is lower than the fair value of the net assets of the acquired subsidiary, then the difference
is recognized in the statement profit or loss.
Goodwill arising from a business combination is
allocated to each cash-generating unit (CGU), or group of CGUs, that are expected to benefit from the business combination. Goodwill is
monitored at the operating segment level.
Goodwill is tested for impairment at least annually
or more often if there is evidence of impairment. Any impairment is recognized as an expense in ‘Other income and expenses’
and cannot be reversed later.
ii. Trademarks
Separately acquired trademarks are shown at historical
cost. Trademarks acquired in a business combination are recognized at fair value at the acquisition date. Management has determined that
these trademarks have indefinite useful lives.
The trademark is tested for impairment at least
annually or more often if there is evidence of impairment. Any impairment is recognized as an expense in ‘Other income and expenses,
net’. The carrying amount written off due to impairment is reviewed at each reporting date to verify possible reversals of the impairment
and is recognized in ‘Other income and expenses’.
iii. Concession rights
The intangible asset related to the right to charge
users for the services covered by the concession (Notes 2.E and F) is initially recorded at the fair value of construction or improvement
services and, prior to the beginning of amortization, an impairment test is performed; it is amortized using the straight-line method,
from the date revenue from services starts using the effective period of the concession agreement.
iv. Contractual customer relationships
Contractual customer relationships are assets
resulting from business combinations that were initially recognized at fair value, determined on the basis of the present value of the
expected net cash flows from such relationships, over a period of time based on the estimated customer tenure (the estimation of useful
life is based on the contract terms which fluctuates between 5 and 9 years). The useful life and the estimate of impairment of these assets
are individually assessed.
v. Cost of well development
Costs incurred during the development phase associated
with the preparation of the wells for the extraction of hydrocarbons from the lots located in Talara, are capitalized as part of intangible
assets. These costs are amortized over the useful lives of the wells (estimated in remaining periods for Lots I and V and the unit-of-production
method for Lots III and IV), until the end of the term of the contracts with Perupetro. The Lot I contract expired in 2021 and Lot V contract
will expire in 2023.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
The Corporation has established the Successful
Efforts Method as its policy for the recognition and evaluation of exploration oil assets. During 2021, an exploratory well was drilled
in Block IV, obtaining successful results. In 2022, no exploratory well drilling activities were carried out.
vi. Software
Software development costs that are directly attributable
to the design and testing of identifiable and unique software controlled by the Corporation are recognized as intangible assets when the
following criteria are met:
| ■ | it is technically feasible to complete the software
so that it will be available for use; |
| ■ | Management has the intention to complete the
software and use or sell it; |
| ■ | there is an ability to use or sell the software; |
| ■ | it can be demonstrated that the software is likely
to generate future economic benefits; |
| ■ | the technical, financial and other resources
necessary to complete the development of the software to enable its use or sale are available; and |
| ■ | expenses attributable to the software during
its development can be reliably measured. |
Other development costs that do not meet these
recognition criteria are recognized in profit or loss as incurred. Development costs previously recognized as an expense are not recognized
as an asset in a subsequent period. Software development costs recognized as assets are amortized over their estimated useful lives, which
range from 2 to 12 years.
vii. Surface rights
It refers to the rights held by the subsidiary
Promotora Larcomar S.A. Land use rights are stated at historical cost less amortization and any accumulated impairment losses. The useful
life of the surface rights is 60 years according to the signed contract and may be extended if agreed by parties. Amortization will begin
when it becomes ready for its intended use by Management.
N. Trade accounts payable
Trade accounts payable are obligations to pay
for goods or services acquired from suppliers in the ordinary course of business. Accounts payable are classified as current liabilities
if payment is to be made in a year or less (or in the normal operating cycle of the business if it is higher); otherwise, they are presented
as non-current liabilities.
Accounts payable are initially recognized at fair
value, and subsequently, they are measured at amortized cost using the effective interest method, except for trade accounts payable of
less than one year that are recorded at face value which is similar to their fair values due to their short-term maturity.
O. Financial liabilities at FVTPL
Financial liabilities designated at initial recognition
at FVTPL are designated at the initial recognition date, and only if the criteria of IFRS 9 are met. The Corporation does not maintain
financial liabilities at fair value.
P. Other financial liabilities
They correspond to loans and bonds issued by the
Corporation, which are initially recognized at their fair value, net of transaction costs incurred. These financial liabilities are subsequently
recorded at amortized cost. Any resulting difference between the funds received (net of transaction costs) and the redemption value is
recognized in the statement of profit or loss during the loan term using the effective interest method.
Costs incurred to obtain these financial liabilities
are recognized as transaction costs to the extent that it is probable that a part or the whole loan will be received. In this case, these
charges defer until the loan is received.
Q. Borrowing costs
Borrowing costs are recognized in profit or loss
in the period in which they have been incurred, except for intangible assets and inventories in which the borrowing costs are capitalized.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
General and specific borrowing costs directly
attributable to acquisitions, construction or development of qualifying assets, which are assets that necessarily take a substantial period
of time (more than twelve months) to get ready for their intended use or sale, are added to the cost of those assets, until such time
as the assets are substantially ready for their intended use or sale. The Corporation suspends the capitalization of borrowing costs during
the periods in which the development of activities of a qualifying asset has been suspended. The income obtained from the temporary investment
of specific borrowings that have not yet been invested in qualifying assets is deducted from the borrowing costs eligible for capitalization.
R. Current and deferred income tax
Income tax of the period comprise current and
deferred income tax. Tax is recognized in the statement of profit or loss, except to the extent that it relates to items recognized in
the statement of other comprehensive income or directly in equity. In this case, the tax is also recognized in the statement of other
comprehensive income or directly in equity, respectively.
The current tax is calculated on the basis of
the tax laws enacted at the date of the statement of financial position in the countries where the Company and its subsidiaries operate
and generate taxable income. Management, where applicable, makes provisions on the amounts expected to be paid to the tax authorities.
A provision is recognized for those matters for
which the determination of taxes is uncertain, but it is considered probable that there will be a future outflow of economic resources
to a tax authority. Provisions are measured at the best estimate of the amount expected to be paid. The assessment is based on the tax
judgment of professionals within the Company supported by prior experience in relation to such activities and in certain cases based on
specialized independent tax advice.
Deferred income tax is recognized on temporary
differences arising from tax basis of assets and liabilities, and their balances in consolidated financial statements. A deferred income
tax asset is only recognized to the extent that it is probable that future taxable profits will be available, against which temporary
differences can be utilized. Deferred income tax is determined using tax rates and legislation enacted as of the date of the consolidated
statement of financial position that are expected to be applied when the deferred tax is realized or paid. A deferred tax asset is only
recognized so far as it is probable that there would be future tax benefits against which temporary differences can be utilized.
Deferred income tax is provided on temporary differences
arising on investments in subsidiaries and associates, except for deferred tax liability where the timing of the reversal of the temporary
difference is controlled by the Corporation and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax arising from the initial recognition of goodwill is not recognized; likewise, the deferred tax is not recorded if it arises
from the initial recognition of an asset or liability in a transaction that is not a business combination that does not affect the accounting
or tax profit or loss at the time of the transaction.
S. Employee benefits
The Corporation recognizes a liability when the
employee has rendered services in exchange for which is entitled to receive future payments and an expense when the Corporation has consumed
the economic benefit from the service rendered by the employee in exchange for the benefits in question.
The Corporation determines employee benefits in
accordance with current labor and legal regulations and classifies them as short-term benefits, long-term benefits, and termination benefits.
Short-term benefits are those other than severance
indemnities, the payment of which is settled in the twelve months following the end of the period in which the employees have rendered
their services; they correspond to current compensation (wages, salaries, and social health contributions), annual and sick leave, profit
sharing and incentives and other non-monetary benefits.
Long-term benefits are those benefits to be paid
more than twelve months after the end of the period in which the services have been rendered. As of December 31, 2021 and 2022, the Corporation
did not grant benefits under this category.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Termination benefits are those benefits payable
as a result of: (i) the entity’s decision to terminate the employee’s contract before the retirement date, and (ii) the employee’s decision
to voluntarily accept the termination of the employment relationship.
i. Short-term benefits
Current compensation
Current compensation consists of wages, salaries,
social health contributions, legal bonuses and compensation for length of service (CTS, for its Spanish acronym). Wages, salaries and
social health contributions are paid monthly based on the consideration for services rendered.
The Corporation entities recognizes the expense
for legal bonuses and their related liabilities under laws and regulations currently in force in Peru, Chile, and Colombia. In Peru, legal
bonuses correspond to two monthly payments which are accrued based on the consideration for the service. There are no legal bonuses in
Chile; in Colombia, it is called service bonus and corresponds to a monthly remuneration per year.
Compensation for length of service (CTS) corresponds
to the employee’s indemnity rights which are accrued based on the consideration for the service rendered calculated in accordance with
the legislation in force in each country where the entities comprising the Corporation operate. They are determined as follows: (i) in
Peru, it is equivalent to half the compensation in force at the date of payment and is made through deposit in bank accounts designated
by the workers in the months of May and November of each year; (ii) in Colombia, it is equivalent to 8.33% of the monthly remuneration,
and (iii) in Chile this benefit is not available.
Annual paid absences
Personnel’s annual vacations are recognized
on an accrual basis. The provision for estimated liability corresponding to personnel’s annual vacations, resulting from services
rendered by the employees, is recorded on the date of the statement of financial position and corresponds to: (i) one month for personnel
in Peru, (ii) fifteen days for personnel in Colombia, and (iii) in the case of Chile, they are subject to the worker’s seniority
and range from fifteen to thirty days.
Profit sharing and incentives
The workers’ profit sharing is determined
on the basis of the legal provisions in force in each country where the entities of the Corporation operate, as follows: (i) in Peru,
it is equivalent to 5% of the taxable base determined by each Company of the Corporation, in accordance with current income tax legislation,
(ii) in Chile, workers’ profit sharing is a component of the remuneration (equivalent to 4.75 minimum wages per year) or 10% of
the profit, to be determined by the employer, (iii) in Colombia, these benefits are not provided to employees.
The Corporation entities recognize liabilities
and expenses for severance indemnities when they occur, based on the legal provisions in force in each country. Under Peruvian law, compensation
for arbitrary dismissal for personnel with indefinite-term contracts is 1.5 times the monthly compensation for each year worked, up to
a maximum of twelve monthly compensations.
Under Colombian legislation, for the first year
worked, the equivalent of 30 days of salary is granted, and from the second year on, the compensation will be the equivalent of 20 days
of salary for each additional year (or the proportion); under the legislation of Chile, the employee receives a compensation of thirty
days of monthly salary for each year worked with a maximum of 330 days.
T. Other provisions
Provisions are recognized when the Corporation
has a present obligation, either legal or constructive, as a result of past events, and when it is probable that an outflow of resources
will be required to settle the obligation and it is possible to reliably estimate its amount. Provisions are reviewed at the end of each
period. If the time value of money is significant, provisions are discounted using a pre-tax rate that reflects, when appropriate, specific
risks of liabilities. The reversal of the discount due to the passage of time results in an increase of the obligation which is recognized
with a charge to the statement of profit or loss as a finance cost.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Contingent obligations are disclosed when their
existence will only be confirmed as a result of future events or when the amount cannot be measured reliably. Contingent assets are not
recognized and are disclosed only if it is probable that the Corporation will generate economic benefits in the future.
Provision for the closure of oil production
wells
Subsidiary Unna Energia S.A. recognizes a provision
for the closure of operating units that correspond to the legal obligation to close oil production wells once the production phase has
been completed. At the initial date of recognition, the liability that arises from said obligation is measured at fair value and discounted
to present value, following the valuation techniques established in IFRS 13 Fair Value Measurement; accordingly, the same amount
is simultaneously charged to the intangible account in the statement of financial position.
Subsequently, the liability will increase in each
period to reflect the financial cost considered in the initial measurement of the discount, and the capitalized cost will be depreciated
based on the useful life of the related asset. When a liability is settled, the subsidiary recognizes any gain or loss that may arise.
The fair value changes estimated for the initial obligation and interest rates are recognized as an increase or decrease in the carrying
amount of the obligation and related asset, according to IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities.
Any reduction in this provision, and therefore, any reduction in the related assets which exceeds the carrying amount of the asset, will
be immediately recognized in the statement of comprehensive income.
If the review of the obligation resulted in the
need to increase the provision, and as a result, the carrying amount of the related asset also increases, the subsidiary takes into account
whether this increase corresponds to an indication that the asset has become impaired and if so, impairment tests will be conducted (Note
2.G).
U. Put option arrangement
In the case of a put option contract on the equity
of a subsidiary that allows the shareholder to reallocate its shares in a certain period, the amount payable under the option is initially
recognized at the present value of the reimbursement under ‘Other accounts payable’, directly charged to equity. The charge
to equity is recorded separately as put options subscribed on the non-controlling interest.
Subsequently, the financial liability is updated
by changes in the assumptions on which the estimation of the expected cash flows is based and by the financial component due to the passage
of time. The effects of this update are recognized in profit and loss.
In 2021, Cumbra Peru S.A. acquired the entire
non-controlling interest of the subsidiary Morelco S.A.S. As of December 31, 2022, Cumbra Peru S.A. the liability was totally paid.
V. Capital
Common shares are classified as equity and are
determined using the par value of the shares that have been issued.
Incremental costs directly attributable to the
issuance of new shares or options are shown in equity as a deduction of the received amount, net of taxes.
W. Revenue from contracts with customers
Revenues from contracts with customers are recognized,
for each performance obligation, either during a period of time or at a point in time, depending on which method best reflects the transfer
of control of the underlying products or services to the obligation of particular performance with the customer.
The Corporation recognizes the revenue through
the application of the five steps defined in the regulations: i) identifying the contract with the customer; ii) identifying performance
obligations in the contract; iii) determining the transaction price; iv) allocating the transaction price to performance obligations;
and v) recognizing revenue when (or as) a performance obligation is satisfied.
The following describes the Corporation’s policy
of recognition for each type of revenue in line with IFRS 15:
i. Engineering and construction
Revenues from engineering and construction
(E&C) contracts are recognized over time as the customer simultaneously receives and consumes the benefits provided by the Corporation’s
performance, the Corporation’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced;
and the Corporation’s performance does not create an asset with an alternative use. For these reason, the Corporation accounts for revenue
over time by measuring the progress towards complete satisfaction of its performance obligations under each contract.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
The Corporation applies the output
method to measure the physical percentage-of-completion which is based on surveys of projects performance by the Corporation’s experts.
The Corporation considers this method depicts the transfer of control of the goods or services to the customers, as it reflects also an
enforceable right to payment by the Corporation for work performed to date.
The Corporation assesses whether one
or more of the following factors has been satisfied: a) the contract, applicable law or other evidence provides a legal basis for the
modification; b) additional costs were caused by circumstances that were unforeseen on the date of execution of the contract and not a
result of deficiencies incurred by the Corporation’s performance; c) modification-related costs are identifiable and considered
reasonable in view of the work performed; or d) evidence supporting the modification is objective and verifiable. When one or more of
the foregoing factors is satisfied, the changes to the rights and obligations in the contract modification are considered by the Corporation
to be enforceable.
The nature of some contracts, such
as cost plus fee contracts, unit price contracts or similar contracts give rise to variable consideration that may include reimbursable
costs, incentives and penalties. To include variable consideration related to a contract modification in the estimated transaction price,
the Corporation must conclude that it is “highly probable” that a significant revenue reversal will not occur. The Corporation
determines the likelihood of revenue reversal occurring (and therefore whether such price will be recovered) based on an analysis of whether
any of the following factors are present: i) contractual entitlement; ii) past practice with the customer; iii) specific discussions or
preliminary negotiations with the customer; or iv) verbal approval by the customer. If, as a result of such analysis, the Corporation
concludes that it is “highly probable” that there will not be a significant reversal of the amount of revenue recognized, it
recognizes the variable consideration relating to the contract modification. When the benefit of the contract cannot be reliably estimated,
the associated revenue is recognized to the extent that the costs incurred are recoverable. Revenue is invoiced upon receipt of customer
approval.
When it is probable that total contract
costs will exceed the related revenue, the expected loss is recognized immediately.
The Corporation estimates the amount
of revenue to be recognized as variable consideration using judgments and estimates to determine the most probable value, which is expected
to best predict the amount of consideration to which the Corporation will be entitled.
ii. Real-estate
Sale of real estate - urban and industrial
lots
Revenue from real estate sale contracts is recognized
when control over the property has been transferred to the client with the delivery record. Revenue is measured based on the price agreed
under the contract. Until this is met, the revenue received will be counted as customer advances. These sales contracts have two performance
obligations: i) the one corresponding to the transfer of the property, which includes the common areas of the building where these real
estates are located, and ii) the one corresponding to the transfer of the common area outside the real estate assets but that are part
of the real estate projects, which are recognized when the common area has been delivered.
Sale of urban lots
Revenue related to sales of urban lots is recognized
when control over the property is transferred to the customer. Until this is met, the revenue received will be counted as customer advances.
Revenue is measured based on the transaction price agreed under the contract. These sales contracts have a single performance obligation
for the sale of lots, which is executed upon delivery of the sale of the assets.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Sale of industrial lots
Revenue related to sales of industrial lots is
recognized when control over the property has been transferred to the customer. Until this is met, the revenue received will be counted
as customer advances. These sales contracts have two performance obligations: i) transfer of the industrial lot and ii) urban authorization
of the industrial lot.
iii. Energy
Revenues from services rendered for oil
and gas extraction, storage and dispatch of fuels and other services
Revenues from the rendering of oil and gas extraction, fuel
storage and dispatch and other services rendered are recognized when the full specific service is provided, calculating the service
actually provided as a portion of the total services to be provided. This type of revenue has a single performance obligation, that
is performed when the service is provided at a point in time.
Revenues from sale of oil and oil byproducts
Revenue from the sale of oil and byproducts is
recognized when the control of the assets is transferred to the customer, which is when the goods are delivered. In this type of revenue,
there is a single performance obligation for the sale of oil and byproducts which is enforced at the delivery of the goods.
iv. Infrastructure
Revenue from concession services
Revenue from concession services corresponds to
operation and maintenance services and is recognized according to its nature in the period in which the service is provided. In this type
of revenue, there is a single performance obligation, enforced when the service is provided.
Revenues from toll collection
Revenues generated by Red Vial 5 S.A. from toll
collection through vehicle control booths are grouped in three different toll stations, located along the Ancon - Huacho - Pativilca road
sections. This type of transactions are recognized at a point of time due to the control is transferred to the time of toll collection.
X. Cost and expense recognition
Engineering and construction contracts
Contract costs include all the incurred direct
costs such as materials, labor, subcontracting costs, manufacturing and supply costs of equipment, start-up costs, depreciation and amortization,
and indirect costs. Periodically, the Company evaluates the reasonableness of the estimates used in the determination of the total estimated
contract cost of the contract. If, as a result of this evaluation, the total estimated cost of the project exceeds expected revenues,
an adjustment is made in order to reflect onerous contract and the corresponding effect in profit or loss of the period in which the loss is incurred.
Cost for sale of oil and byproducts
The costs of services provided, and the costs
of sales of oil and byproducts are recognized when incurred, which in this case are incurred at the same time that related revenue is
recognized. Other costs and expenses are recognized as they accrue, regardless of the moment when they are paid, and are recorded in the
accounting periods to which they relate.
Cost for concession operation services
The costs for operation and maintenance services
are recognized when incurred, at the same time that related revenue is recognized. Other costs and expenses are recognized as they accrue,
regardless of the moment when they are paid, and are recorded in the accounting periods to which they relate.
Y. Leases
Lease contracts are analyzed for the purpose of
identifying those containing the characteristics specified in IFRS 16 Leases for recognition, measurement, presentation and disclosure.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
The Corporation evaluates in every lease contract
the following:
| ■ | If it conveys the right to control the use of
an identified asset; |
| ■ | If the contract term is longer that twelve months; |
| ■ | If the underlying asset amount is a material
amount, and, |
| ■ | That the fees to be paid are not entirely variable. |
Leases in which the Corporation is a lessee
The Corporation recognizes a right-of-use asset
and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at
the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct
costs incurred. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end
of the lease term. The term of the lease includes the periods covered by an option to extend the contract if the Corporation is reasonably
sure to exercise that option.
The lease liability is the total unpaid installments,
measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising
from a change in an index or rate, if there is a change in the Corporation’s estimate of the amount expected to be payable under
a residual value guarantee, or if the Corporation changes its assessment of whether it will exercise a purchase, extension or termination
option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset.
In the engineering and construction segment, interest
expenses related to leasing contracts of the core business are reported in gross margin; the rest of the Corporation segments reports
them in finance expenses.
Operating cash flows will be greater since cash
payments for the main portion of the lease debt are classified within the financing activities. Only the portion of the payments that
reflects interest can continue to be presented as operating cash flows.
Leases in which the Corporation is a lessor
Operating leases and assets are included in the
consolidated statement of financial position according to the nature of the asset. Revenues from operating leases are recognized on a
straight-line basis over the term of the lease agreement and the incentives granted to lessees are reduced from rental income. Accordingly,
the Corporation, as lessor, has not changed the recognition of its leases.
Z. Dividend distribution
Dividend distribution to the shareholders is recognized
as a liability in the financial statements in the period in which dividends are approved.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
AA. Immaterial corrections of previously reported balances as of December 31, 2021
In connection with the preparation of its consolidated financial statements,
the Corporation identified an error in the interpretation and application of the accounting treatment of revenue and cost recognition
arising from contracts with customers in the engineering and construction segment in prior years. Management of the Corporation has evaluated
and concluded that the correction of this error has resulted in non-material adjustment to the net income previously reported in the consolidated
financial statements as of December 31, 2021. It should be noted that the aforementioned adjustments had no impact on total cash flows
from operating, investing or financing activities.
A reconciliation between the previously reported
amounts and the revised amounts as of December 31, 2021, and for the year then ended is presented below:
Consolidated Statement of Financial Position:
| |
As of December 31, 2021 | |
| |
Reported | | |
Adjustment |
| | |
Revised | |
ASSETS | |
| | |
|
| | |
| |
Current assets | |
| | |
|
| | |
| |
Trade accounts receivables, net | |
| 590,280 | | |
| 244,352 |
| (a) | |
| 834,632 | |
Work in progress, net | |
| 309,063 | | |
| (309,063 |
) | (b) | |
| - | |
Other current assets | |
| 1,985,521 | | |
| - |
| | |
| 1,985,521 | |
Total current assets | |
| 2,884,864 | | |
| (64,711 |
) | | |
| 2,820,153 | |
| |
| | | |
| |
| | |
| | |
Non-current assets | |
| | | |
| |
| | |
| | |
Deferred tax asset | |
| 275,076 | | |
| 1,270 |
| (c) | |
| 276,346 | |
Other non-current assets | |
| 2,740,632 | | |
| - |
| | |
| 2,740,632 | |
Total non-current assets | |
| 3,015,708 | | |
| 1,270 |
| | |
| 3,016,978 | |
Total assets | |
| 5,900,572 | | |
| (63,441 |
) | | |
| 5,837,131 | |
| |
| | | |
| |
| | |
| | |
| |
| | | |
| |
| | |
| | |
LIABILITIES AND EQUITY | |
| | | |
| |
| | |
| | |
Current liabilities | |
| | | |
| |
| | |
| | |
Trade accounts payable | |
| 980,767 | | |
| (67,941 |
) | (b) | |
| 912,826 | |
Other provisions | |
| 154,829 | | |
| 716 |
| (c) | |
| 155,545 | |
Other current liabilities | |
| 1,212,121 | | |
| - |
| | |
| 1,212,121 | |
Total current liabilities | |
| 2,347,717 | | |
| (67,225 |
) | | |
| 2,280,492 | |
| |
| | | |
| |
| | |
| | |
Non-current liabilities | |
| | | |
| |
| | |
| | |
Deferred tax liability | |
| 97,367 | | |
| 1,040 |
| (c) | |
| 98,407 | |
Other non-current liabilities | |
| 2,002,222 | | |
| - |
| | |
| 2,002,222 | |
Total non-current liabilities | |
| 2,099,589 | | |
| 1,040 |
| | |
| 2,100,629 | |
Total liabilities | |
| 4,447,306 | | |
| (66,185 |
) | | |
| 4,381,121 | |
| |
| | | |
| |
| | |
| | |
Equity | |
| | | |
| |
| | |
| | |
Equity attributable to controlling interest in the Company | |
| 1,199,816 | | |
| 3,229 |
| | |
| 1,203,045 | |
Non-controlling interest | |
| 253,450 | | |
| (485 |
) | | |
| 252,965 | |
Total equity | |
| 1,453,266 | | |
| 2,744 |
| | |
| 1,456,010 | |
Total liabilities and equity | |
| 5,900,572 | | |
| (63,441 |
) | | |
| 5,837,131 | |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
Consolidated statements of profit or Loss:
| |
For the year ended December 31, 2021 | |
| |
Reported | | |
Adjustment |
| | |
Revised | |
Revenue from construction activities | |
| 2,272,561 | | |
| 194,916 |
| (a) | |
| 2,467,477 | |
Revenue from services provided | |
| 1,094,439 | | |
| - |
| | |
| 1,094,439 | |
Revenue from real estate and sale of goods | |
| 579,482 | | |
| - |
| | |
| 579,482 | |
| |
| 3,946,482 | | |
| 194,916 |
| | |
| 4,141,398 | |
| |
| | | |
| |
| | |
| | |
Cost of construction activities | |
| (2,178,648 | ) | |
| (194,834 |
) | (b) | |
| (2,373,482 | ) |
Cost of services provided | |
| (918,212 | ) | |
| 17,895 |
| (b) | |
| (900,317 | ) |
Cost of real estate and sale of goods | |
| (454,484 | ) | |
| - |
| | |
| (454,484 | ) |
| |
| (3,551,344 | ) | |
| (176,939 |
) | | |
| (3,728,283 | ) |
Gross profit | |
| 395,138 | | |
| 17,977 |
| | |
| 413,115 | |
| |
| | | |
| |
| | |
| | |
Administrative expenses | |
| (179,613 | ) | |
| - |
| | |
| (179,613 | ) |
Other income and expenses | |
| (4,477 | ) | |
| - |
| | |
| (4,477 | ) |
Operating profit | |
| 211,048 | | |
| 17,977 |
| | |
| 229,025 | |
| |
| | | |
| |
| | |
| | |
Financial expenses | |
| (262,574 | ) | |
| - |
| | |
| (262,574 | ) |
Financial income | |
| 5,773 | | |
| - |
| | |
| 5,773 | |
Share of the profit or loss of associates and joint ventures accounted for using the equity method | |
| (861 | ) | |
| - |
| | |
| (861 | ) |
Loss before income tax | |
| (46,614 | ) | |
| 17,977 |
| | |
| (28,637 | ) |
Income tax expense | |
| (43,700 | ) | |
| (2,705 |
) | (c) | |
| (46,405 | ) |
Loss from continuing operations | |
| (90,314 | ) | |
| 15,272 |
| | |
| (75,042 | ) |
Loss from discontinued operations | |
| (26,774 | ) | |
| - |
| | |
| (26,774 | ) |
Loss for the year | |
| (117,088 | ) | |
| 15,272 |
| | |
| (101,816 | ) |
| |
| | | |
| |
| | |
| | |
(Loss) profit attributable to: | |
| | | |
| |
| | |
| | |
Controlling interest in the Company | |
| (153,210 | ) | |
| 11,440 |
| | |
| (141,770 | ) |
Non-controlling interest | |
| 36,122 | | |
| 3,832 |
| | |
| 39,954 | |
| |
| (117,088 | ) | |
| 15,272 |
| | |
| (101,816 | ) |
| |
| | | |
| |
| | |
| | |
Loss per share attributable to controlling interest in the Company during the year | |
| (0.176 | ) | |
| 0.013 |
| | |
| (0.163 | ) |
| |
| | | |
| |
| | |
| | |
Total comprehensive income for the year | |
| | | |
| |
| | |
| | |
Comprehensive income attributable to: | |
| | | |
| |
| | |
| | |
Controlling interest in the Company | |
| (159,592 | ) | |
| 12,167 |
| | |
| (147,425 | ) |
Non-controlling interest | |
| 36,089 | | |
| 4,083 |
| | |
| 40,172 | |
| |
| (123,503 | ) | |
| 16,250 |
| | |
| (107,253 | ) |
Segment information by geographic area
| |
For the year ended
December 31, 2021 | |
In thousands of soles | |
Reported | | |
Adjustment | | |
Revised | |
Revenue | |
| | |
| | |
| |
Peru | |
| 3,255,214 | | |
| 29,460 | | |
| 3,284,674 | |
Chile | |
| 585,317 | | |
| 165,248 | | |
| 750,565 | |
Colombia | |
| 105,951 | | |
| 209 | | |
| 106,160 | |
| |
| 3,946,482 | | |
| 194,916 | | |
| 4,141,398 | |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
As a result of this process, the balances in the
consolidated statement of cash flows were revised as follows:
| |
For the year ended December 31, 2021 | |
| |
Reported | | |
Adjustment | | |
| |
Revised | |
| |
| | |
| | |
| |
| |
OPERATING ACTIVITIES | |
| | |
| | |
| |
| |
(Loss) profit before income tax | |
| (78,350 | ) | |
| 17,977 | | |
(a, b) | |
| (60,373 | ) |
Adjustments to profit not affecting cash flows from | |
| | | |
| | | |
| |
| | |
operating activities: | |
| | | |
| | | |
| |
| | |
Other provisions | |
| 62,246 | | |
| 716 | | |
(c) | |
| 62,962 | |
Incremental cost of acquiring interest in joint operation | |
| - | | |
| 12,732 | | |
(b) | |
| 12,732 | |
Other adjustments | |
| 490,819 | | |
| - | | |
| |
| 490,819 | |
Net variations in assets and liabilities: | |
| | | |
| | | |
| |
| | |
Trade accounts receivable and working in progress | |
| (82,527 | ) | |
| (60,663 | ) | |
(a, b) | |
| (143,190 | ) |
Other accounts receivable | |
| 41,626 | | |
| 507 | | |
(a) | |
| 42,133 | |
Trade accounts payable | |
| (55,131 | ) | |
| 27,756 | | |
(b) | |
| (27,375 | ) |
Other accounts payable | |
| 72,991 | | |
| 975 | | |
(c) | |
| 73,966 | |
Other variations | |
| (257,166 | ) | |
| - | | |
| |
| (257,166 | ) |
Net cash provided by operating activities | |
| 194,508 | | |
| - | | |
| |
| 194,508 | |
| |
| | | |
| | | |
| |
| | |
INVESTING ACTIVITIES | |
| | | |
| | | |
| |
| | |
Net cash applied to investing activities | |
| (88,189 | ) | |
| - | | |
| |
| (88,189 | ) |
| |
| | | |
| | | |
| |
| | |
FINANCING ACTIVITIES | |
| | | |
| | | |
| |
| | |
Net cash applied to financing activities | |
| (50,425 | ) | |
| - | | |
| |
| (50,425 | ) |
Net decrease in cash | |
| 55,894 | | |
| - | | |
| |
| 55,894 | |
Exchange difference | |
| 1,116 | | |
| - | | |
| |
| 1,116 | |
Cash and cash equivalents at the beginning of the year | |
| 900,168 | | |
| - | | |
| |
| 900,168 | |
Cash and cash equivalents at the end of the year | |
| 957,178 | | |
| - | | |
| |
| 957,178 | |
| |
| | | |
| | | |
| |
| | |
NON-CASH TRANSACTIONS: | |
| | | |
| | | |
| |
| | |
Capitalization of interests | |
| 1,244 | | |
| - | | |
| |
| 1,244 | |
Acquisition of assets through finance leases | |
| 104 | | |
| - | | |
| |
| 104 | |
Dividends declared to non-controlling interest | |
| 17,281 | | |
| - | | |
| |
| 17,281 | |
Acquisition of right-of-use assets | |
| 7,988 | | |
| - | | |
| |
| 7,988 | |
(a) | As discussed in Note 2.W, revenue from engineering and construction contracts is recognized over
time as the Corporation fulfills its obligations, as there is a continuous transfer of control of the deliverable to the customer
and revenue is recognized using the percentage-of-completion method for each contract through the date of the consolidated financial
statements. |
Revenue from additional work resulting from a modification or instruction
received from the customer to make a change in the scope of work, price, or both will result in an increase in contract revenue which
is also recognized using the percentage-of-completion method when the Corporation concludes that it is highly probable that there will
not be a significant reversal of such revenue. Before the immaterial correction, the Corporation recognized a lower proportion of this
additional revenue at the date of the consolidated financial statements depending on the status or stage in the process of obtaining formal,
written approval for the additional work. After the immaterial correction, the Corporation recognized additional revenue based on the
percentage of completion of the additional work, as long as the Corporation can conclude from its dealings with its clients that it is
highly probable that there will not be a significant reversal of such revenue.
(b) |
Before the immaterial correction, the Corporation presented the net position of construction contracts as either an asset or a liability. The contract was considered an asset when the gross margin earned at the measurement date was less than the Corporation’s estimated gross margin at contract completion. This asset was presented as “Work in progress”. If the gross margin obtained was greater than the estimated gross margin at completion, it was presented as a liability under “Accounts payable - Provision for estimated contract costs by stage of completion, both with an effect on the cost of construction activities account. |
In order to correct the immaterial error, the Corporation reversed
the balances of the work in progress account from assets and the provision for construction contract costs from liabilities, recognized
the costs incurred in the consolidated statement of profit or loss.
(c) | Corresponds to the recognition of the tax effects related to the adjustments described in (a) and (b)
above. |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
3. Standards, amendments, and interpretation of international financial reporting standards
A. New amendments to IFRS mandatory as of January 1, 2022
The following standards and interpretations and
amendments to existing standards were issued with mandatory application for the accounting period beginning January 1, 2022, but were
not relevant and did not have a material impact on the Corporation’s operations:
Effective date |
New standards or modifications |
January 1, 2022 |
Amendments to IAS 37 - Onerous Contracts - Costs of Fulfilling a Contract |
Annual Improvements to IFRS 2018-2020 (Amendments to IFRS 1, IAS 9, and IAS 41) |
Amendments to IAS 16 - Property, Plant and Equipment - Revenue Before Expected Use |
Amendments to IFRS 3 - Reference to the Conceptual Framework |
B. New IFRSs and interpretations issued after the date of presentation of the consolidated financial statements
At the date of authorization of these consolidated
financial statements, the Company has not applied the following new and revised Standards that have been issued but are not yet effective.
Effective date |
New standards or modifications |
January 1, 2023 |
Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current |
IFRS 17 Insurance Contracts and its amendments. |
Amendments to IAS 1 and Practical Statement 2 “Making Judgments Related to Materiality” - Disclosures of Accounting Policies |
Amendments to IAS 8 - Definition of Accounting Estimates |
Amendments to IAS 12 - Deferred Taxes Relating to Assets and Liabilities Arising from a Single Transaction |
Adoption optional/ effective date deferred indefinitely |
Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture |
These accounting pronouncements issued but not
yet effective are not expected to have a material impact on the Company’s consolidated financial statements.
4. Financial Risk Management
The Corporation’s Management is responsible
for managing financial risks. The corporation Management manages the general administration of financial risks such risks include currency
risk, price risk, fair-value and cash-flow interest rate risks, credit risk, the use of derivative and non-derivative financial instruments,
and investment of liquidity surplus, as well as financial risks; all of which are regularly supervised and monitored.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
A. Financial risk factors
The Corporation’s activities expose it to
a variety of financial risks: market risks (including currency risk, price risk, fair-value and cash-flow interest rate risks), credit
risk, and liquidity risk.
The Corporation’s general program for risk management is mainly
focused on financial market unpredictability and seeks to minimize potential adverse effects on the Corporation’s financial performance.
(a) Market risk
Market risk is the risk that the fair value or
future cash flows of a financial instrument will fluctuate due to changes in market prices. Market prices involve four types of risk:
interest rate risk, exchange rate risk, commodity price risk and other price risks. Financial instruments affected by market risk include
bank deposits, trade accounts receivable, other accounts receivable, other financial liabilities, bonds, trade accounts payable, other
accounts payable and accounts receivable from and payable to related parties.
(i) Currency risk
Foreign exchange risk is the risk that the fair
value of future cash flows of a financial instrument will be reduced by adverse fluctuations in exchange rates. Management is responsible
for identifying, measuring, controlling and reporting the exposure to foreign exchange risk.
The Corporation is exposed to foreign exchange
risk arising from local transactions in foreign currencies and from its foreign operations. As of December 31, 2021 and 2022, this exposure
is focused mainly on fluctuations of the U.S. dollar, Chilean peso, and Colombian peso. The Corporation’s management monitors this risk
by analyzing the country’s macroeconomic variables.
The balances of financial assets and liabilities
denominated in foreign currencies correspond to balances in U.S. Dollars, Chilean pesos and Colombian pesos, which are stated exchange
rate published on that date, according to the currency type:
| |
As of December 31, | | |
As of December 31, | |
| |
2021 | | |
2022 | |
| |
Buy | | |
Sale | | |
Buy | | |
Sale | |
U.S. Dollars (a) | |
| 3.975 | | |
| 3.998 | | |
| 3.808 | | |
| 3.820 | |
Chilean Peso (b) | |
| 0.004706 | | |
| 0.004733 | | |
| 0.004449 | | |
| 0.004463 | |
Colombian Peso (c) | |
| 0.000998 | | |
| 0.001004 | | |
| 0.000792 | | |
| 0.000794 | |
| (a) | U.S. Dollar as published by the Superintendencia de Banca
y Seguros (hereinafter SBS). |
| (b) | Chilean peso as published by Banco Central de Chile. |
| (c) | Colombian peso as published by Banco de la Republica de Colombia. |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
The consolidated statement of financial position as of December 31,
includes the following balances:
In thousands of US dollars | |
2021 | | |
2022 | |
Assets | |
| | |
| |
Cash and cash equivalents | |
| 119,627 | | |
| 58,280 | |
Trade accounts receivable, net | |
| 92,016 | | |
| 124,593 | |
Accounts receivable from related parties | |
| 219,209 | | |
| 276,048 | |
Other accounts receivable | |
| 87,742 | | |
| 75,536 | |
| |
| 518,594 | | |
| 534,457 | |
Liabilities | |
| | | |
| | |
Borrowings | |
| (101,975 | ) | |
| (215,076 | ) |
Bonds | |
| (95,022 | ) | |
| (5,569 | ) |
Trade accounts payable | |
| (123,128 | ) | |
| (119,104 | ) |
Accounts payable to related parties | |
| (81,799 | ) | |
| (133,745 | ) |
Other accounts payable | |
| (60,821 | ) | |
| (88,012 | ) |
Other provisions | |
| (29,641 | ) | |
| (42,241 | ) |
| |
| (492,386 | ) | |
| (603,747 | ) |
The Corporation assumes foreign exchange risk
because it does not use derivative financial instruments to mitigate exchange rate fluctuations.
For the periods ended December 31, 2021 and 2022,
the Corporation’s exchange gains and losses for the exposure of U.S. Dollar, the Chilean peso, and the Colombian peso against the
Peruvian Sol was, (Note 26.A):
In thousands of soles | |
2021 | | |
2022 | |
Gain | |
| 383,199 | | |
| 449,864 | |
Loss | |
| (430,410 | ) | |
| (450,133 | ) |
| |
| (47,211 | ) | |
| (269 | ) |
If, as of December 31, 2022, the U.S. Dollars,
the Chilean peso, and the Colombian peso had been strengthened/weakened by 5% against the Peruvian Sol, the pre-tax profit or loss for
the year would have an impact equivalent to S/13 thousand (S/ 2.7 million in 2021). If, as of December 31, 2022, the U.S. Dollars,
the Chilean peso, and the Colombian peso had been strengthened/weakened by 10% against the Peruvian Sol, the pre-tax profit or loss for
the year would have an impact equivalent to S/27 thousand (S/ 4.7 million in 2021).
The consolidated statement of changes in equity
comprises a foreign currency translation adjustment originated by its subsidiaries. The consolidated statement of financial position includes
the following assets and liabilities in its currency (in thousands):
| |
2021 | | |
2022 | |
| |
Assets | | |
Liabilities | | |
Assets | | |
Liabilities | |
Chilean Pesos | |
| 72,776,160 | | |
| 93,740,228 | | |
| 60,684,971 | | |
| 81,864,810 | |
Colombian Pesos | |
| 59,773,077 | | |
| 31,057,046 | | |
| 96,944,436 | | |
| 59,114,296 | |
The Corporation’s foreign currency translation
adjustment in 2022 was negative by S/20.9 million (negative by S/ 5 million in 2021).
(ii) Price risk
The Corporation is exposed to the risk of hydrocarbon
price fluctuations which impacts on the selling price of the products that it commercializes, which are significantly affected by changes
in global economic conditions, resource availability, and the cycles of related industries. Management considers reasonable these possible
fluctuations in the hydrocarbons prices, based in the Corporation´s economic market environment.
If, as of December 31, 2022, the oil price had
increased/decreased by 5%, the pre-tax profit for the year would have increased/decreased by S/ 28.4 million and S/ 29.8 million (S/42.3
million and S/39.7 million in 2021). This analysis assumes that all other variables remain constant. If, as of December 31, 2022, the oil
price had increased/decreased by 10%, the pre-tax profit for the year would have increased/decreased by S/ 56.4 million and S/ 62 million
(S/88.9 million and S/78.6 million in 2021).
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
(iii) | Fair-value and cash-flow interest rate risk |
Interest rate risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.
The Corporation’s interest rate risk arises
mainly from its long-term financial liabilities. Variable rate long-term financial liabilities expose the Corporation to cash-flow interest
rate risk. Fixed-rate financial liabilities expose the Corporation to fair-value interest rate risk.
The Corporation assumes the interest rate risk,
due to they do not use financial derivative instruments for mitigate variations in the interest rate risk.
The sensitivity to a reasonably possible change
in interest rates is shown below. With all other variables held constant, the Corporation’s income before income taxes would be affected
by the impact on variable rate borrowings. For the period ended December 31, 2022 and 2021 the impact on income before income taxes on
a 10% increase or decrease amounts to approximately S/2.5 million and S/2.6 million, respectively (S/2 million and S/2.1 million, respectively,
in 2021). The assumed movement in basis points related to the interest rate sensitivity analysis is based on the current market environment.
(b) Credit risks
Credit risk is the risk that a counterparty will
not meet its obligations under a financial instrument or commercial contract, resulting in a financial loss.
Credit risk for the Corporation arises from its
operating activities due to credit exposure to customers and from its financial activities, including deposits with banks and financial
institutions, foreign exchange transactions, and other financial instruments. The maximum exposure to credit risk for the consolidated
financial statements as of December 31, 2022 and 2021 is represented by the sum of cash and cash equivalents (Note 9), trade accounts
receivable (Note 10), other accounts receivable (Note 12) and accounts receivable from related parties (Note 11).
Customer credit risk is managed by Management
subject to the Corporation’s established policies, procedures and control related to customer credit risk management. The credit quality
of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined based on this assessment.
The maximum credit risk exposure at the reporting date is the carrying value of each class of financial assets disclosed in Note 10.
The Corporation assesses the concentration of
risk with respect to trade accounts receivable as low risk because sales are not concentrated in small customer groups and no customers
account for 10% or more of the Corporation’s revenues.
Management monitors the credit risk of other receivables
on an ongoing basis and assesses those receivables that show evidence of impairment to determine the required allowance for doubtful accounts.
Concerning loans to related parties, the Corporation
has measures in place to ensure the recovery of these loans through the controls maintained by the Corporate Finance Management and the
performance evaluation conducted by the Board of Directors (Note 11).
Management does not expect the Corporation to
incur any losses from the performance of these counterparties, except for the ones already recorded in the consolidated financial statements.
(c) Liquidity risk
Prudent liquidity risk management implies holding
enough cash and cash equivalent, and financing available through a proper number of credit sources, and the ability to close positions
in the market. Historically, the Corporation’s cash flows from operations have enabled it to meet its obligations. The Corporation has
implemented various actions to reduce its exposure to liquidity risk and has developed a Financial Plan based on several steps, which
were designed with a commitment to compliance within a reasonable period of time. The Financial Plan is intended to meet the various obligations
at the Company and Corporation entities levels.
The Corporate Finance Office monitors the cash
flow projections made on liquidity requirements of the Corporation to ensure it exists sufficient cash to meet operational needs so that
the Corporation does not breach borrowing limits or covenants, where applicable, on any of its borrowing facilities. Less significant
financing transactions are controlled by the Finance Management of each subsidiary.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
Such forecasting takes into consideration the
Corporation’s debt financing plans, covenant compliance, compliance with ratio targets in the statement of financial position and,
if applicable, with external regulatory or legal requirements.
Cash surplus on the amounts required for the administration
of working capital are invested in checking accounts that generate interest and time deposits, selecting instruments with appropriate
maturities or sufficient liquidity.
As of December 31, 2022, the Company has significant
current payment obligations arising from the Collaboration and Benefits Agreement (Note 1.C) and the Bridge Loan (Note 17.A.i). For this
purpose, Management is developing a financial plan with the aim of covering the short-term part of these obligations.
The table below analyzes the Corporation’s
financial liabilities grouped according to the remaining period from the date of the statement of financial position to the date of maturity.
The amounts disclosed in the table below are the contractual undiscounted cash flows, which include interest to be accrued according to
the established schedule.
| |
| | |
Contractual cash flows | |
| |
Carrying | | |
Less than | | |
1-2 | | |
2-5 | | |
More than | | |
| |
In thousands of soles | |
amount | | |
1 year | | |
years | | |
years | | |
5 years | | |
Total | |
As of December 31, 2021 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other financial liabilities
(except for finance leases and lease liability for right-of-use asset) | |
| 509,557 | | |
| 224,503 | | |
| 52,751 | | |
| 173,392 | | |
| 124,320 | | |
| 574,966 | |
Finance leases | |
| 9,836 | | |
| 5,624 | | |
| 4,613 | | |
| 296 | | |
| - | | |
| 10,533 | |
Lease liability for right-of-use asset | |
| 60,507 | | |
| 18,817 | | |
| 24,295 | | |
| 21,993 | | |
| 8,086 | | |
| 73,191 | |
Bonds | |
| 1,260,922 | | |
| 137,852 | | |
| 206,476 | | |
| 837,931 | | |
| 792,037 | | |
| 1,974,296 | |
Trade accounts payables (except non-financial
liabilities) | |
| 912,826 | | |
| 912,826 | | |
| - | | |
| - | | |
| - | | |
| 912,826 | |
Accounts payables to related parties | |
| 101,716 | | |
| 51,004 | | |
| 50,712 | | |
| - | | |
| - | | |
| 101,716 | |
Other accounts payables and other provisions (except non-financial liabilities) | |
| 842,198 | | |
| 323,070 | | |
| 22,941 | | |
| 109,383 | | |
| 422,666 | | |
| 878,060 | |
| |
| 3,697,562 | | |
| 1,673,696 | | |
| 361,788 | | |
| 1,142,995 | | |
| 1,347,109 | | |
| 4,525,588 | |
| |
| | |
Contractual cash flows | |
| |
Carrying | | |
Less than | | |
1-2 | | |
2-5 | | |
More than | | |
| |
In thousands of soles | |
amount | | |
1 year | | |
years | | |
years | | |
5 years | | |
Total | |
As of December 31, 2022 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other financial liabilities (except for finance leases and lease liability for right-of-use asset) | |
| 819,973 | | |
| 599,310 | | |
| 71,732 | | |
| 216,392 | | |
| - | | |
| 887,434 | |
Finance leases | |
| 835 | | |
| 873 | | |
| - | | |
| - | | |
| - | | |
| 873 | |
Lease liability for right-of-use asset | |
| 59,085 | | |
| 19,075 | | |
| 31,705 | | |
| 23,386 | | |
| 113 | | |
| 74,279 | |
Bonds | |
| 869,913 | | |
| 141,246 | | |
| 185,114 | | |
| 419,969 | | |
| 707,800 | | |
| 1,454,129 | |
Trade accounts payables (except non-financial liabilities) | |
| 1,037,013 | | |
| 1,027,256 | | |
| 9,757 | | |
| - | | |
| - | | |
| 1,037,013 | |
Accounts payables to related parties | |
| 80,781 | | |
| 53,488 | | |
| 25,420 | | |
| 697 | | |
| 1,176 | | |
| 80,781 | |
Other accounts payables and other provisions (except non-financial liabilities) | |
| 712,071 | | |
| 186,326 | | |
| 64,307 | | |
| 89,868 | | |
| 470,129 | | |
| 810,630 | |
| |
| 3,579,671 | | |
| 2,027,574 | | |
| 388,035 | | |
| 750,312 | | |
| 1,179,218 | | |
| 4,345,139 | |
B. Capital management
The Corporation’s objective in managing
capital is to safeguard its ability to continue as going concern in order to generate returns to its shareholders, benefits to stakeholders,
and keep an optimal capital structure to reduce capital cost. Since 2017, due to the situation of the Corporation, Management has monitored
deviations that might cause the non-compliance of covenants and may hinder renegotiation of liabilities (Note 17.A). In special situations
and events, the Corporation identifies potential deviations, requirements and establishes a plan.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
The Corporation may adjust the amount of dividends
payable to shareholders, return capital to shareholders, issue new shares or sell assets to reduce its debt to maintain or adjust the
capital structure.
The Corporation monitors its capital based on
the leverage ratio. This ratio is calculated as net debt divided by the sum of net debt plus equity. The net debt corresponds to the total
financial liabilities (including current and non-current indebtedness) adding the provision for civil compensation less cash and cash
equivalents.
As of December 31, 2021 and 2022, the leverage
ratio is as follows:
In thousands of soles | |
Note | |
2021 | | |
2022 | |
Total borrowing, bonds and civil compensation (*) | |
17 and 18 | |
| 2,326,903 | | |
| 2,238,699 | |
Less: Cash and cash equivalents | |
9 | |
| (957,178 | ) | |
| (917,554 | ) |
Net debt (a) | |
| |
| 1,369,725 | | |
| 1,321,145 | |
Total equity (b) | |
| |
| 1,456,010 | | |
| 1,346,006 | |
Total net debt plus equity (a) + (b) | |
| |
| 2,825,735 | | |
| 2,667,151 | |
Gearing ratio | |
| |
| 0.48 | | |
| 0.50 | |
| (*) | The provision for civil compensation is included in other
provisions (Note 21). |
During the years ended December 31, 2021 and 2022,
there were no changes in the objectives, policies or processes related to capital management.
5. Use of Judgments and Estimates
The estimates and judgments used are continuously
evaluated and are based on historical experience and other factors, including the reasonable expectation of occurrence of future events
depending on the circumstances.
A. Significant accounting estimates and criteria
The Corporation makes estimates and assumptions
regarding the future. Resulting accounting estimates very rarely will be the same as the actual results. The following are the estimates
and assumptions that have significant risk as to produce a material adjustment to the balances of assets and liabilities for next periods.
i. Impairment testing of goodwill and other finite useful-life fixed assets and indefinite useful-life intangible assets
Impairment testing is undertaken annually to determine
if goodwill arising from business acquisitions and other useful-life indefinite intangible assets are impaired, in accordance with the
policy described in Note 2.G. For this purpose, goodwill is allocated to the different CGUs to which it relates while other indefinite
useful-life intangible assets are assessed individually.
The recoverable amounts of the CGU and of other
indefinite useful-life intangible assets have been determined based on the higher of their value-in-use or fair value less costs to sell.
This testing requires the exercise of Management’s professional judgment to analyze any potential indicators of impairment such
as the use of estimates in determining the value in use, including preparing future cash flows, macro-economic forecasts as well as defining
the interest rate at which said cash flows will be discounted.
If the Corporation experiences a significant drop
in revenues or a drastic increase in costs or changes in other factors, the fair value of their business units might decrease. If Management
determines that the factors reducing the fair value of the business units are permanent, those economic factors will be taken into consideration
to determine the recoverable amount of those business units and therefore, goodwill, as well as other indefinite useful-life intangible
assets may be deemed to be impaired, which could result in write-off being necessary.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
As a result of these evaluations, as of December
31, 2021 and 2022, no provision for goodwill impairment was identified (Note 16.A) and; as of December 31, 2022, the Corporation recognized
impairment of the Vial y Vives-DSD brands for S/2.5 million; however, no provision was identified for the Morelco brand. In 2021, no impairment
was identified for these brands (Note 16.B).
As of December 31, 2021 and 2022, the Corporation
conducted a sensitivity analysis increasing or decreasing the assumptions of gross margin, discount rate, and revenue and terminal growth
rate by 10% (this percentage corresponds to the relevant evaluation range for management). This analysis assumes that all other variables
remain constant.
Goodwill
In 2022, if the gross margin, discount rate, and
perpetual growth rate were 10% below or above management’s estimates, collectively and/or independently, the Corporation would not have
had to recognize a provision for impairment of goodwill of UGE Engineering and Construction (Morelco) because its fair value would have
increased or decreased by S/13.5 million.
In 2021, if the gross margin and discount rate
were 10% below or above management’s estimates, in the aggregate and/or independently, the Corporation would have had to recognize an
impairment provision for goodwill of UGE Ingeniería y construcción (Morelco) within the range of S/4.6 million and S/15
million.
Trademarks
In 2022, if the revenue growth rate, discount rate and perpetual growth
rate were 10% below or above management’s estimates, in the aggregate and/or independently, the Corporation would have had to recognize
an impairment provision for the Vial y Vives-DSD brands in the range of S/3.1 million and S/3.9 million, and for the Morelco brand, the
Corporation would not have had to recognize an impairment provision because its fair value would have increased or decreased in the range
of S/2.1 million and S/16.1 million.
In 2021, if the revenue growth rate, discount rate and perpetual growth
rate were 10% below or above management’s estimates, in the aggregate and/or independently, the Corporation would have had to recognize
an impairment provision for the Vial y Vives-DSD brand in the range of S/3 million and S/3.1 million; and for the Morelco brand, the Corporation
would not have had to recognize an impairment provision because its fair value would have increased or decreased in the range of S/10.2
million and S/11.4 million.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
ii. Taxation
Determination of the tax obligations and expenses
requires interpretations of the applicable tax legislation. The Corporation has professional advice on legal tax matters before making
any decision on tax matters.
Deferred tax assets and liabilities are calculated
based on the temporary differences arising between the taxable basis of assets and liabilities and the respective amounts stated in the
financial statements of each entity comprising the Corporation, using the tax rates in effect in each of the years in which the difference
is expected to reverse. Any change in tax rates will affect the deferred tax assets and liabilities. This change will be recognized in
the consolidated statement of profit or loss in the period in which the change takes effect.
Deferred tax assets are recognized only to the
extent that it is probable that future taxable profits will be available against which temporary differences and tax losses can be used.
For this purpose, the Corporation takes into consideration all available information, including factors such as historical data, projected
income, current operations, and tax planning strategies. A tax benefit related to a tax position is only recognized if the benefit will
be realized.
The income tax for the year includes Management’s
evaluation of the amount of taxes to be paid in uncertain tax positions, where the liabilities have not yet been agreed with the tax administration.
The Corporation’s possible maximum exposure to tax contingency amounts to S/ 310.98 million.
iii. Percentage of completion revenue recognition
Revenue from services based on construction contracts
are recognized by the percentage of completion method, according to the output method (Note 2.W.i). The Corporation needs to estimate
the cost to be obtained upon completion of the work. Projections of these costs are determined by Management based on their execution
budgets and adjusted periodically in order to use updated information to reflect actual performance in the work. In this regard, Management
believes that the estimates made at the end of the year are reasonable.
Contract revenues are recognized as such in the
consolidated statement of comprehensive income and the costs related to the construction contract are recognized as Costs of Construction
in the consolidated statement of comprehensive income in the accounting periods in which the project was executed. Costs directly related
to a specific contract include: labor costs at the construction site (including construction supervision), costs of materials used in
construction, depreciation costs of equipment used in the contract, design and technical assistance costs directly related to the contract,
among others (Note 2.X). However, any expected and likely cost overruns related to the contract over total expected income under the contract
is recognized as expense immediately. In addition, any change in the estimates under the contract is recognized as a change in accounting
estimates in the period in which the change is made and future periods, if applicable. In certain construction contracts, the terms of
these agreements allow to retain an amount to customers until construction is completed.
As of December 31, 2021 and 2022, a sensitivity
analysis was performed considering a 10% increase/decrease in the construction margins in the following sectors: i) buildings, ii) energy,
iii) industry, iv) infrastructure, v) mining, vi) oil & gas, vii) water and sewage, and viii) various services, as shown below:
| |
2021 | | |
2022 | |
Revenue | |
| 2,467,477 | | |
| 2,451,067 | |
Gross profit | |
| 93,995 | | |
| (14,212 | ) |
% | |
| 3.81 | | |
| 0.58 | |
Plus 10% | |
| 4.19 | | |
| 0.64 | |
Increase in profit (loss) before income tax | |
| 9,392 | | |
| (1,475 | ) |
| |
| 103,387 | | |
| (15,687 | ) |
Less 10% | |
| 3.43 | | |
| 0.52 | |
Decrease in (loss) profit before income tax | |
| (9,392 | ) | |
| 1,475 | |
| |
| 84,603 | | |
| (12,737 | ) |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
Provision for decommissioning and well closure
The provision for decommissioning and well closure
is an obligation established by law for all operators. Accordingly, it is more likely than not that an outflow of resources will be required
to settle the obligation and it is possible to reliably estimate its amount. The operator is responsible for this activity to the extent
that the wells have been worked during the contract period.
As of December 31, 2021 and 2022, the estimate
of the amount calculated by the Corporation is based on the following factors:
- | Total number of wells to be plugged, |
| |
- | Well decommissioning and plugging costs (these costs are estimated on the basis of plug and abandonment
performed in previous periods and with quotations made for the Lot I abandonment plan), and |
| |
- | Costs for facility abandonment and remediation areas |
The Corporation estimates the present value of
its future obligation for decommissioning and well closure costs (well closure liability) and increases the carrying amount of the asset
to be retired in the future, which is shown in intangible assets item in the consolidated statement of financial position. The provision
is recognized at the present value of the expected disbursements in local and foreign currency to settle the obligation using the Peruvian
sovereign bond discount rate in local and foreign currency, respectively for 5, 15 and 30 years.
The pre-tax discount rates used for the calculation
of the present value in 2022 were 5.41% (US dollars) and 7.21% (soles) for Lot I; 5.29% (US dollars) and 6.96% (soles) for Lot V (in 2021
1.48% and 4.54% for Lot I and 1.13% and 4.01% for Lot V, respectively); and 6.57% (US dollars) and 8.22% (soles) for Lots III and IV,
based on the rate applicable to Peruvian sovereign bonds in soles and dollars between 3, 5 and 30 years respectively, in effect as of
December 2021 and 2022. The liability for the closure of wells and other oil premises is readjusted to reflect changes arising from the
passage of time and from reviews conducted either at the date of occurrence or the amount of the present value of the originally estimated
obligations (Note 21).
If, as of December 31, 2021 and 2022, the estimated rate had increased
or decreased by 10%, the impact on pre-tax profit would not have been significant. This analysis assumes that all other variables remain
constant:
In thousands of soles | |
2021 | | |
2022 | |
10% | |
| 1,628 | | |
| 383 | |
(10%) | |
| 1,812 | | |
| 409 | |
iv. Impairment of investment in associate and account receivable to Gasoducto Sur Peruano S.A.
As a consequence of the termination of the concession
agreement signed between Gasoducto Sur Peruano S.A. (hereinafter “GSP”) and the Peruvian State (Note 14.A), in 2019 the Company
impaired the full value of its investment in GSP.
Regarding trade accounts receivable, to GSP (Note
11 and Note 14), the Management has determined its recoverability under the following assumptions: (i) the amount that GSP will recover
as a result of a possible public auction y (ii) the liquidation of the company via the GSP Creditor´s meeting.
Accounts receivable related to GSP as of December
31, 2021 and 2022 amount to S/ 643.9 million and S/ 542.4 million, respectively (Note 11).
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
The calculation of the impairment estimate adheres
to a process of liquidation of GSP in accordance with Peruvian legislation, according to which the value of the asset to be recovered
is used first to cover the payments of liabilities in the different categories of creditors and the remainder, if it is the case, to cover
the payment to the shareholders, taking into account the existing subordination agreements.
In 2018, in relation to the amount to be recovered
by GSP, the Company assumed a recovery of the minimum amount established in the Concession Agreement, which is equivalent to 72.25% of
the Net Carrying Amount (NCA) of the Concession assets. This amount represented a minimum payment to be obtained by GSP based on a public
auction to be set up for the adequate transfer of the Concession’s assets to a new concessionaire, under the relevant contractual
terms and conditions.
Beginning 2019, the recovery of NCA estimated
by Management equals 50%, considering the agreements reached in the Final Collaboration and Benefits Agreement and a total term of eight
years has been considered, which included the formation of the Creditors’ Meeting, the approval of the settlement plan, the presentation
of the arbitration claim, as well as the entire arbitration process.
As of the date of this report, GSP is under liquidation.
AENZA S.A.A. has pointed as chairman of the Creditors’ Meeting. On April 11, 2023, the Creditors’ Meeting approved with 77% of the
votes, the Liquidation Agreement, which establishes the liquidator’s framework. Likewise, on April 12, 2023, the liquidator (Alva Legal
Asesoria Empresarial S.A.C.) has notarially requested the initiation of the Direct Treatment procedure with the Ministry of Energy and
Mines in accordance with the rules of the Concession Contract. The Company considers that the term of eight years for the recovery of
the investment is adequate, considering the possibility of an arbitration process and the time it will take to execute the award. See
assumptions and recognized values in Note 14.A.i. The Company’s management maintains the recovery estimate in 8 years, applying
a discount rate of 5.85% (recovery term of eigth years with a discount rate of 2.73% as of December 31, 2021). These estimates generated
during 2022 a present value effect of approximately S/72.2 million (S/32.8 million during 2021).
B. Significant judgments in applying accounting policies
Consolidation of entities in which the Corporation
holds less than 50%
The Corporation owns some direct and indirect
subsidiaries in which it has control, even having less than 50% of the voting rights. These entities are mainly related to indirect subsidiaries
in the real estate business owned through Viva Negocio Inmobiliario S.A.C., having control over relevant activities affecting the subsidiaries’
returns, even though the Corporation holds interest between 30% and 50%. Additionally, the Corporation has de facto control by
a contractual agreement with the majority investor over Promotora Larcomar S.A. of which it owns 46.55% of the equity interest.
Consolidation of entities in which the Corporation
does not have joint control but holds rights and obligations over the assets and liabilities
The Corporation assesses, on an ongoing basis,
the nature of the contracts signed with one or more parties. If the Corporation is not determined to have control or joint control but
has rights to the assets and obligations for the liabilities under the arrangement, the Corporation recognizes its assets, liabilities,
income and expenses and its interest in any jointly controlled assets or liabilities and any income or expenses arising from the arrangement
as a joint operation in accordance with IFRS 11 - Joint Arrangements (Note 2.B.v).
6. Interests in Other Entities
The consolidated financial statements include
the accounts of the Company and its subsidiaries. Additionally, the consolidated financial statements include interests in joint operations
in which the Company or certain subsidiaries have joint control with their partners (Note 2.B).
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
A. Main subsidiaries
The following table shows the main direct and
indirect subsidiaries classified by operating segment (Note 7):
Name |
Country |
Economic activity |
Engineering and Construction: |
|
|
|
|
|
Cumbra Peru S.A. |
Peru, Chile, and Colombia |
Service of civil construction, electromechanical assembly, and building, management and implementation of real estate projects, and other related services. |
GyM Chile S.p.A. |
Chile |
Investment funds, investment companies, and similar financial entities. |
Vial y Vives - DSD S.A. |
Chile |
Construction engineering projects, civil construction, and related technical advisory, rental of agriculture and livestock, forest, construction and civil engineering machinery and equipment without operators. |
Morelco S.A.S. |
Colombia, Ecuador, and Peru |
Provision of construction and assembly services, supply of equipment and materials, operation and maintenance, and engineering services in the specialties of mechanics, instrumentation, and civil works. |
Cumbra Ingenieria S.A. |
Peru, Mexico, and Bolivia |
Engineering advisory and consultancy, project execution, and project studies and supervision, and work management. |
Energy: |
|
|
Unna Energia S.A. |
Peru |
Oil and natural gas products and byproducts extraction, operation and exploitation services, as well as fuel storage and dispatch services. |
Oiltanking Andina Services S.A. |
Peru |
Operation of the gas processing plant of Pisco - Camisea. |
Transportadora de Gas Natural Comprimido Andino S.A.C. (TGNCA) |
Peru |
Trade of natural gas through a virtual system and compression service. |
|
|
|
Name |
Country |
Economic activity |
|
|
|
Infrastructure: |
|
|
Unna Transporte S.A.C. |
Peru |
Operation and maintenance of highways and concessions. |
Tren Urbano de Lima S.A. |
Peru |
Concession to operate the metro transportation system of Lima Metropolitana. |
Carretera Andina del Sur S.A. |
Peru |
Concession to construct, operate, and maintain Section 1 of “Interoceanica Sur” highway. |
Red Vial 5 S.A. |
Peru |
Concession to restore, operate, and maintain the “Ancon - Huacho - Pativilca” Section of “Panamericana Norte” Highway. |
Carretera Sierra Piura S.A.C. |
Peru |
Concession to operate and maintain the Buenos Aires - Canchaque provincial highway. |
Concesionaria Via Expresa Sur S.A. |
Peru |
Concession to design, construct, operate, and maintain Via Expresa - Paseo de la Republica in Lima. |
Real estate: |
|
|
Viva Negocio Inmobiliario S.A.C. |
Peru |
Development and management of real estate projects directly or jointly to other partners. |
Parent company operation: |
|
|
CAM Holding S.p.A. |
Chile |
Investment company. |
Qualys S.A. |
Peru |
Provision of human, economic and technological services to the Corporation’s companies. |
Promotores Asociados de Inmobiliarias S.A. |
Peru |
It operates in the real estate industry and is engaged in development and sale of offices. |
Negocios del Gas S.A. |
Peru |
Investment company for construction, operation, and maintenance of natural gas and natural gas liquids transportation systems. |
Inversiones en Autopistas S.A. |
Peru |
Company holding shares, interests, or other any ownership or credit investment. |
Operadores de Infraestructura S.A.C. |
Peru |
Activities related to the leasing of advertising space and commercial premises on Line 1 of the Lima Metro. |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
The following table shows the Corporation’s subsidiaries and
related interest as of December 31, 2022:
In percentage | |
Percentage of
common shares
directly held by
Parent
Company (%) | | |
Percentage of
common shares held by
Subsidiaries (%) | | |
Percentage of
common shares held by
the Group (%) | | |
Percentage of
common shares held by
non-controlling
interest (%) | |
Engineering and Construction: | |
| | |
| | |
| | |
| |
Cumbra Peru S.A. | |
| 99.39 | % | |
| - | | |
| 99.39 | % | |
| 0.61 | % |
- Morelco S.A.S. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- GyM Chile S.p.A. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- Vial y Vives - DSD S.A. | |
| - | | |
| 99.16 | % | |
| 99.16 | % | |
| 0.84 | % |
- Cumbra Inversiones Colombia S.A.S. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
Cumbra Ingenieria S.A. | |
| 89.41 | % | |
| - | | |
| 89.41 | % | |
| 10.59 | % |
- Ecologia Tecnologia Ambiental S.A.C. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- GM Ingenieria y Construccion de CV | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- GM Ingenieria Bolivia S.R.L. | |
| - | | |
| 98.57 | % | |
| 98.57 | % | |
| 1.43 | % |
Energy: | |
| | | |
| | | |
| | | |
| | |
Unna Energia S.A. | |
| 95.00 | % | |
| - | | |
| 95.00 | % | |
| 5.00 | % |
- Oiltanking Andina Services S.A. | |
| - | | |
| 50.00 | % | |
| 50.00 | % | |
| 50.00 | % |
- Transportadora de Gas Natural | |
| | | |
| | | |
| | | |
| | |
Comprimido Andino S.A.C. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
Infrastructure: | |
| | | |
| | | |
| | | |
| | |
Unna Transporte S.A.C. | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
Tren Urbano de Lima S.A. | |
| 75.00 | % | |
| - | | |
| 75.00 | % | |
| 25.00 | % |
Carretera Andina del Sur S.A.C | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
Red Vial 5 S.A. | |
| 18.20 | % | |
| 48.80 | % | |
| 67.00 | % | |
| 33.00 | % |
Carretera Sierra Piura S.A.C. | |
| 99.96 | % | |
| 0.04 | % | |
| 100.00 | % | |
| - | |
Concesionaria Via Expresa Sur S.A. | |
| 98.89 | % | |
| 0.02 | % | |
| 100.00 | % | |
| - | |
Real Estate: | |
| | | |
| | | |
| | | |
| | |
Viva Negocio Inmobiliario S.A.C. | |
| 99.54 | % | |
| 43.32 | % | |
| 99.54 | % | |
| 0.46 | % |
Parent company operations: | |
| | | |
| | | |
| | | |
| | |
Qualys S.A. | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
Promotora Larcomar S.A. | |
| 46.55 | % | |
| - | | |
| 46.55 | % | |
| 53.45 | % |
Negocios del Gas S.A. | |
| 99.99 | % | |
| 0.01 | % | |
| 100.00 | % | |
| - | |
Agenera S.A. | |
| 99.00 | % | |
| 1.00 | % | |
| 100.00 | % | |
| - | |
Inversiones en Autopistas S.A. | |
| 1.00 | % | |
| 99.00 | % | |
| 100.00 | % | |
| - | |
Cam Holding S.p.A. | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
The following table shows the Corporation’s
subsidiaries and related interest as of December 31, 2021:
In percentage | |
Percentage of
common shares
directly held by
Parent
Company (%) | | |
Percentage of
common shares
directly held by
Subsidiaries (%) | | |
Percentage of
common shares
directly held by
the Group (%) | | |
Percentage of
common shares
directly held by
non-controlling interest (%) | |
Engineering and Construction: | |
| | |
| | |
| | |
| |
Cumbra Peru S.A. | |
| 99.39 | % | |
| - | | |
| 99.39 | % | |
| 0.61 | % |
- Morelco S.A.S. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- GyM Chile S.p.A. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- Vial y Vives - DSD S.A. | |
| - | | |
| 94.49 | % | |
| 94.49 | % | |
| 5.51 | % |
- Cumbra Inversiones Colombia S.A.S. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
Cumbra Ingenieria S.A. | |
| 89.41 | % | |
| - | | |
| 89.41 | % | |
| 10.59 | % |
- Ecologia Tecnologia Ambiental S.A.C. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- GM Ingenieria y Construccion de CV | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
- GM Ingenieria Bolivia S.R.L. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| 1.43 | % |
Energy: | |
| | | |
| | | |
| | | |
| | |
Unna Energia S.A. | |
| 95.00 | % | |
| - | | |
| 95.00 | % | |
| 5.00 | % |
- Oiltanking Andina Services S.A. | |
| - | | |
| 50.00 | % | |
| 50.00 | % | |
| 50.00 | % |
- Transportadora de Gas Natural | |
| | | |
| | | |
| | | |
| | |
Comprimido Andino S.A.C. | |
| - | | |
| 100.00 | % | |
| 100.00 | % | |
| - | |
Infrastructure: | |
| | | |
| | | |
| | | |
| | |
Unna Transporte S.A.C. | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
Tren Urbano de Lima S.A. | |
| 75.00 | % | |
| - | | |
| 75.00 | % | |
| 25.00 | % |
Carretera Andina del Sur S.A.C | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
Red Vial 5 S.A. | |
| 18.20 | % | |
| 48.80 | % | |
| 67.00 | % | |
| 33.00 | % |
Carretera Sierra Piura S.A.C. | |
| 99.96 | % | |
| 0.04 | % | |
| 100.00 | % | |
| - | |
Concesionaria Via Expresa Sur S.A. | |
| 99.98 | % | |
| 0.02 | % | |
| 100.00 | % | |
| - | |
Real Estate: | |
| | | |
| | | |
| | | |
| | |
Viva Negocio Inmobiliario S.A.C. | |
| 56.22 | % | |
| 43.32 | % | |
| 99.54 | % | |
| 0.46 | % |
Parent company operations: | |
| | | |
| | | |
| | | |
| | |
Qualys S.A. | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
Promotora Larcomar S.A. | |
| 46.55 | % | |
| - | | |
| 46.55 | % | |
| 53.45 | % |
Negocios del Gas S.A. | |
| 99.99 | % | |
| 0.01 | % | |
| 100.00 | % | |
| - | |
Agenera S.A. | |
| 99.00 | % | |
| 1.00 | % | |
| 100.00 | % | |
| - | |
Inversiones en Autopistas S.A. | |
| 1.00 | % | |
| 99.00 | % | |
| 100.00 | % | |
| - | |
Cam Holding S.p.A. | |
| 100.00 | % | |
| - | | |
| 100.00 | % | |
| - | |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
B. Public service concessions
The Corporation has public service concessions.
When applicable, the income attributable to the construction or restoration of infrastructure has been accounted for by applying the models
described in Note 2.E (financial asset model and intangible assets).
In all Corporation’s concessions, the infrastructure
returns to the Grantor at the end of the Agreement.
Find below the concessions held by the Corporation
as of December 31, 2021 and 2022:
Name of Concessionaire |
Description |
Estimated investment |
Consideration |
Interest |
Concession termination |
Accounting model |
Carretera Andina del Sur S.A. |
This company operates and maintains a highway of 750
km from San Juan de Marcona Port to Urcos, Peru, which is connected to the Interoceanica highway. The highway has five tolls and
three weigh stations. |
US$ 99 million |
Transaction secured by the Peruvian Government comprising
annual payments for highway maintenance and operation, under responsibility of the Ministry of Transportation and Communications
(MTC). |
100.00% |
2032 |
Financial asset |
|
|
|
|
|
|
|
Carretera Sierra Piura S.A.C. |
This company regularly operates and maintains a highway
of 78 km, which connects Buenos Aires and Canchaque towns in Peru. The highway has one toll. |
US$ 31 million |
Transaction secured by the Peruvian Government regardless
traffic volume. Revenue is secured by an estimated annual amount of US$ 1.4 million. |
100.00% |
2025 |
Financial asset |
|
|
|
|
|
|
|
Concesionaria La Chira S.A. |
Design, financing, construction, operation, and maintenance
of “Planta de Tratamiento de Aguas Residuales y Emisario Submarino La Chira” project. About 25% of sewage of Lima is
treated under this project. |
S/ 450 million |
Transaction secured by the Peruvian Government consisting
of monthly and quarterly payments settled by Sedapal´s collection trust. |
50.00% |
2036 |
Financial asset |
|
|
|
|
|
|
|
Tren Urbano de Lima S.A. |
Concession to operate the Electric Mass Transportation
System of Lima and Callao, Line 1 Villa El Salvador - Avenida Grau - San Juan de Lurigancho, the only railway system in Lima Metropolitana,
including (i) operation and maintenance of existing trains (24 trains as initial investment and 20 additional trains) and (ii) operation
and maintenance of the railway system (railway and infrastructure). |
S/ 566 million |
Transaction secured by the Peruvian Government through
a quarterly payment made by the MTC based on kilometers per train. |
75.00% |
2041 |
Financial asset |
|
|
|
|
|
|
|
Red Vial 5 S.A. |
Operation and maintenance of the highway connecting
Lima to the northwest of Peru. This highway, known as Red Vial, is 183 km long from Ancon to Pativilca and has three tolls. |
US$ 187 million |
Collected from users (self-funded concession; revenue
comes from toll collection). |
67.00% |
2028 |
Intangible |
|
|
|
|
|
|
|
Concesionaria Via Expresa Sur S.A. |
Concession to design, finance, construction, operation,
and maintenance of the infrastructure associated with the Via Expresa Sur project. This project comprises the second stage expansion
of Via Expresa – Paseo de la Republica, between Av. Republica de Panama and and Panamericana highway. |
- |
By virtue of this agreement, the users had to pay the
respective tolls and the Peruvian Government guaranteed to pay the amount to cover the deficit resulting from collection to users
and the annual limits established in such an agreement. On December 16, 2022, the Municipality of Lima and Concesionaria Via Expresa
Sur declared the expiration of the Concession Agreement. |
100.00% |
2053 |
Financial asset |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated Financial Statements
December 31, 2021 and 2022
C. Hydrocarbon and gas contracts
As of December 31, 2022, the subsidiary Unna Energia
S.A. has mainly three contracts signed with Perupetro S.A. In 2021, it had four contracts signed with Perupetro S.A. and one contract
signed with ENEL, as indicated below:
i. Service contract for exploration and exploitation of hydrocarbons (Lot V)
This contract was signed with Perupetro S.A. in
1993 for a period of twenty years. In March 2010 the Extension Agreement to the oil services contract was signed until October 2023. The
lot is located in the provinces of Talara and Contralmirante Villar, departments of Piura and Tumbes, Grau region, northeastern Peru.
As of December 31, 2022, the Company held a total of 95 wells of which 39 wells were active and 56 wells were inactive (as of December
31, 2021 it held 95 wells of which 40 wells were active and 55 wells were inactive).
ii. License agreement for the exploitation of hydrocarbons (Lot III)
Subscribed with Perupetro S.A. in March 2015 for
a period of thirty years for oil, and forty years for non-associated natural gas counted from April 5, 2015, the date corresponding to
the start of operations. The lot is located in the provinces of Talara and Paita, Grau region, northeastern Peru. As of December 31, 2022,
the Company held a total of 505 wells of which 172 wells were active and 333 wells were inactive (as of December 31, 2021 it held 498
wells of which 134 wells were active and 364 wells were inactive).
iii. License agreement for the exploitation of hydrocarbons (Lot IV)
Subscribed with Perupetro S.A. in March 2015 for
a period of thirty years for oil, and forty years for non-associated natural gas counted from April 5, 2015, the date corresponding to
the start of operations. The lot is located in the provinces of Talara and Contralmirante Villar, department of Piura and Tumbes, Grau
region, northeastern Peru. As of December 31, 2022, the Company had a total of 578 wells of which 361 wells were active and 217 wells
were inactive (as of December 31, 2021 it had 528 wells of which 337 wells were active and 191 wells were inactive).
iv. Service contract for exploration and exploitation of hydrocarbons (Lot I)
Contract terminated on December 26, 2021, signed
in 1991 by Cavelcas del Peru S.A. (CAVELCAS) and Perupetro S.A. for a period of twenty years. On July 31, 1995 CAVELCAS made the assignment
of the contractual position for 100% of the participation to the Company, the latter assuming the technical, economic and financial responsibility
of the operations. In March 2010 an extension agreement was signed for this contract until December 2021. To date, the Company is in the
process of obtaining the approval of the Abandonment Plan, in order to execute the activities under its responsibility due to the termination
of the Contract.
v. Contract for the operation of hydrocarbon supply terminals.
On July 16, 2014, Petroperu S.A. signed contracts
for the operation of the North and Central hydrocarbon supply terminals with the subsidiary Unna Energia S.A. and Oiltanking Peru S.A.C.,
for the provision of reception, storage and dispatch services for a term of twenty years from the date of signing the contracts, for which
the Terminales del Peru Consortium was formed, which began operating on September 2, 2014. Unna Energia S.A. is the operator and both
consortium members exercise joint control of the business and have a 50% shareholding.
D. Joint operations
As of December 31, 2021 and 2022, the Corporation
participates in 39 and 38 joint operations with third parties, respectively. The table below lists the main joint operations in which
the Corporation participates.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
| |
Percentage of interest | |
Joint operations | |
2021 | | |
2022 | |
AENZA S.A.A. | |
| | |
| |
- Concesionaria La Chira S.A. | |
| 50 | % | |
| 50 | % |
Cumbra Peru S.A. | |
| | | |
| | |
- Consorcio Huacho Pativilca | |
| 67 | % | |
| 67 | % |
- Consorcio GyM – CONCIVILES | |
| 67 | % | |
| 67 | % |
- Consorcio Chicama - Ascope | |
| 50 | % | |
| 50 | % |
- Consorcio Constructor Alto Cayma | |
| 50 | % | |
| 50 | % |
- Consorcio Ermitaño | |
| 50 | % | |
| 50 | % |
- Consorcio GyM-Stracon | |
| 50 | % | |
| 50 | % |
- Consorcio HV GyM | |
| 50 | % | |
| 50 | % |
- Consorcio La Chira | |
| 50 | % | |
| 50 | % |
- Consorcio Lima Actividades Comerciales Sur | |
| 50 | % | |
| 50 | % |
- Consorcio Lima Actividades Sur | |
| 50 | % | |
| 50 | % |
- Consorcio Rio Urubamba | |
| 50 | % | |
| 50 | % |
- Consorcio Alto Cayma | |
| 49 | % | |
| 49 | % |
- Consorcio La Gloria | |
| 49 | % | |
| 49 | % |
- Consorcio Norte Pachacutec | |
| 49 | % | |
| 49 | % |
- Consorcio Italo Peruano | |
| 48 | % | |
| 48 | % |
- Consorcio Vial Quinua | |
| 46 | % | |
| 46 | % |
- Consorcio Constructor Ductos del Sur | |
| 29 | % | |
| 29 | % |
- Consorcio Constructor Chavimochic | |
| 27 | % | |
| 27 | % |
- Consorcio Inti Punku | |
| 49 | % | |
| 49 | % |
- Consorcio Pasco | |
| 1 | % | |
| 1 | % |
Unna Energia S.A. | |
| | | |
| | |
- Consorcio Terminales | |
| 50 | % | |
| 50 | % |
- Terminales del Peru | |
| 50 | % | |
| 50 | % |
Unna Transporte S.A.C. | |
| | | |
| | |
- Consorcio Ancon-Pativilca | |
| - | | |
| - | |
- Consorcio Peruano de Conservacion | |
| 50 | % | |
| 50 | % |
- Consorcio Manperan | |
| 67 | % | |
| 67 | % |
- Consorcio Vial Sierra | |
| 50 | % | |
| 50 | % |
- Consorcio Vial Ayahuaylas | |
| 99 | % | |
| 99 | % |
- Consorcio Vial ICAPAL | |
| - | | |
| - | |
- Consorcio Vial Sullana | |
| 99 | % | |
| 99 | % |
- Consorcio Vial del Sur | |
| 99 | % | |
| 99 | % |
- Consorcio Obras Viales | |
| 99 | % | |
| - | |
Cumbra Ingenieria S.A. | |
| | | |
| | |
- Consorcio Vial la Concordia | |
| 88 | % | |
| 88 | % |
- Consorcio GMI- Haskoningdhv | |
| 70 | % | |
| 70 | % |
- Consorcio Supervisor Ilo | |
| 55 | % | |
| 55 | % |
- Consorcio Poyry-GMI | |
| 40 | % | |
| 40 | % |
- Consorcio Internacional Supervision Valle Sagrado | |
| 33 | % | |
| 33 | % |
- Consorcio Ecotec - GMI - PIM | |
| 30 | % | |
| 30 | % |
- Consorcio Ribereno Chinchaycamac | |
| 40 | % | |
| 40 | % |
- Consorcio Supervisor GRH | |
| 83 | % | |
| 83 | % |
- Consorcio Ecotec - GMI | |
| 20 | % | |
| 20 | % |
All joint agreements listed above are operated
in Peru.
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
The main activities of the joint operations correspond
to:
Joint agreements |
Economic activity |
AENZA S.A.A. |
Construction, operation, and maintenance of the raw sewage treatment
plant of La Chira to the south of Lima. The purpose of the project is to face enviromental problems of Lima, due to raw sewage flowing
into the sea.
|
Cumbra Peru S.A. |
Consortiums created only to come into construction contracts.
|
Unna Energia S.A. |
Consorcio Terminales and Terminales del Peru provide services of reception,
storage, shipment, and transportation of liquid hydrocarbons such as gasoline, fuel for aircrafts, diesel and residual fuel, among others.
|
Unna Transporte S.A.C. |
Services of refurbishment, routinary and regular maintenance of highways,
and highway preservation and conservation services.
|
Cumbra Ingenieria S.A. |
Engineering advisory and consulting services, execution of studies
and projects, project management, and work supervision.
|
7. Operating Segments
Operating segments are reported consistently with
the internal reports that are reviewed by the Corporation’s chief decision-maker; that is, the Executive Committee, which is led
by the Corporate General Manager. This Committee acts as the maximum authority in operations decision making and is responsible for allocating
resources and assessing the performance of each operating segment.
The Corporation’s segments are assessed
by the activities of the following business units: (i) engineering and construction, (ii) energy, (iii) infrastructure, and (iv) real
estate.
As set forth under IFRS 8, reportable segments
based on the level of revenue are ‘engineering and construction’, ‘infraestructure’ and ‘energy´.
Income derived from operations abroad (Chile and
Colombia) represents 19.5% of the Corporation’s total income in 2022 (20.7% in 2021 including Chile and Colombia).
Inter-segmental sale transactions are made at
prices similar to those that would have been agreed to with non-related third parties. Revenues from external customers reported are measured
in a manner consistent with the basis of preparation of the statement of profit or loss. Sale of goods are related to real estate segment.
Revenues from services are related to other segments.
Corporation’s sales and accounts receivable
are not concentrated in a few customers. There are no external customers representing 10% or more of the Corporation’s revenue.
The Corporation has determined four reportable
segments. These operating segments are components of a company about which separate financial information is available that is regularly
evaluated by the Corporate Governance Board (“CODM”) in deciding how to allocate resources and assess performance.
The operations of Corporation in each reportable
segment are as follows:
(a) | Engineering and construction: This segment includes traditional engineering services such as architectural
planning, structural, civil and design engineering for advanced specialties including process design, simulation, and environmental services,
as well as construction at three divisions: i) civil works, such as the construction of hydroelectric power stations and other large infrastructure
facilities; (ii) electromechanical construction, such as concentrator plants, oil and natural gas pipelines, and electric transmission
lines; iii) building construction, such as offices, residential buildings, hotels, and affordable housing projects, shopping centers,
and industrial facilities. |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
| (b) | Energy: This segment includes oil exploration, exploitation, production, treatment, and trade in four
oil deposits, separation and trade of natural gas and its byproducts at the gas processing plant, as well as the construction and assembly
of oil facilities or those linked to the oil and gas industry. It also includes storage and dispatch of fuel and oil byproducts. |
| (c) | Infrastructure: The Corporation has long-term concessions or similar contractual arrangements in Peru
for three highways with tolls, Lima Metro, a sewage treatment plant in Lima, and operation and maintenance services for infrastructure
assets. |
| (d) | Real Estate: The Corporation mainly develops and sells properties for low- and middle-resource sectors,
which are experiencing a significant increase in available income, as well as luxury properties to a lesser degree. It also develops commercial
spaces and offices. |
The Executive Committee uses adjusted EBITDA
(earnings before interest, tax, depreciation, and amortization) as the primary relevant indicator to understanding the operating performance
of the Corporation and its operating segments.
Adjusted EBITDA is not a measurement of results
based on International Financial Reporting Standards. The Corporation’s definition related to adjusted EBITDA may not be comparable to
similar performance measures and disclosures from other entities.
The adjusted EBITDA is reconciled to net loss
as follows:
In thousands of soles | |
2021 | | |
2022 | |
Net loss | |
| (101,816 | ) | |
| (362,054 | ) |
Financial income and expenses | |
| 209,495 | | |
| 141,020 | |
Interests for present value of financial asset or liability | |
| 63,032 | | |
| 86,014 | |
Income tax | |
| 41,443 | | |
| 131,346 | |
Depreciation and amortization | |
| 205,307 | | |
| 177,023 | |
Adjusted EBITDA | |
| 417,461 | | |
| 173,349 | |
Adjustments to adjusted EBITDA for other items | |
| | | |
| | |
Impairment of investments | |
| - | | |
| 14,525 | |
Provisions: civil compensation and legal claims | |
| 30,457 | | |
| 256,198 | |
Put option on Morelco S.A.S. acquisition | |
| (70,322 | ) | |
| - | |
Adjusted EBITDA for other items | |
| 377,596 | | |
| 444,072 | |
The adjusted EBITDA with non recurring items per
segment is as follows:
In thousands of soles | |
2021 | | |
2022 | |
Engineering and construction | |
| 47,295 | | |
| (72,335 | ) |
Energy | |
| 173,664 | | |
| 184,199 | |
Infrastructure | |
| 197,066 | | |
| 262,626 | |
Real estate | |
| 36,912 | | |
| 137,671 | |
Parent company operations | |
| (34,450 | ) | |
| 10,550 | |
Intercompany eliminations | |
| (42,891 | ) | |
| (78,639 | ) |
| |
| 377,596 | | |
| 444,072 | |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
The following table shows the Corporation’s financial statements
by operating segments:
Operating segments financial
position
Segment reporting
| |
Engineering | | |
| | |
Infrastructure | | |
| | |
Parent | | |
| | |
| |
In thousands of soles | |
and
construction | | |
Energy | | |
Toll
roads | | |
Transportation | | |
Water
treatment | | |
Real estate | | |
Company operations | | |
Eliminations | | |
Consolidated | |
As of December 31, 2021 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Assets.- | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Cash and cash equivalent | |
| 303,925 | | |
| 121,873 | | |
| 114,100 | | |
| 182,607 | | |
| 7,499 | | |
| 109,828 | | |
| 117,346 | | |
| - | | |
| 957,178 | |
Trade accounts receivables, net | |
| 610,651 | | |
| 67,662 | | |
| 38,418 | | |
| 106,856 | | |
| 1,003 | | |
| 9,958 | | |
| 84 | | |
| - | | |
| 834,632 | |
Accounts receivable from related parties | |
| 95,390 | | |
| 121 | | |
| 48,012 | | |
| 4,309 | | |
| - | | |
| 3,166 | | |
| 52,644 | | |
| (182,825 | ) | |
| 20,817 | |
Other accounts receivable | |
| 390,133 | | |
| 31,092 | | |
| 30,057 | | |
| 18,734 | | |
| 960 | | |
| 3,783 | | |
| 12,297 | | |
| 2 | | |
| 487,058 | |
Inventories, net | |
| 48,192 | | |
| 35,489 | | |
| 7,662 | | |
| 31,949 | | |
| 13 | | |
| 366,650 | | |
| - | | |
| (1,629 | ) | |
| 488,326 | |
Prepaid expenses | |
| 15,838 | | |
| 3,575 | | |
| 6,531 | | |
| 344 | | |
| 52 | | |
| - | | |
| 5,802 | | |
| - | | |
| 32,142 | |
Total current assets | |
| 1,464,129 | | |
| 259,812 | | |
| 244,780 | | |
| 344,799 | | |
| 9,527 | | |
| 493,385 | | |
| 188,173 | | |
| (184,452 | ) | |
| 2,820,153 | |
Long-term trade accounts receivable, net | |
| 851 | | |
| - | | |
| 15,654 | | |
| 666,801 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 683,306 | |
Long-term accounts receivable from related parties | |
| 335,150 | | |
| - | | |
| 19,700 | | |
| 42 | | |
| 11,536 | | |
| - | | |
| 584,596 | | |
| (307,127 | ) | |
| 643,897 | |
Prepaid expenses | |
| - | | |
| 981 | | |
| 20,558 | | |
| 1,894 | | |
| 684 | | |
| - | | |
| - | | |
| (510 | ) | |
| 23,607 | |
Other long-term accounts receivable | |
| 10,448 | | |
| 86,815 | | |
| - | | |
| - | | |
| 7,346 | | |
| 57,243 | | |
| 39,508 | | |
| - | | |
| 201,360 | |
Investments in associates and joint ventures | |
| 108,038 | | |
| 8,951 | | |
| - | | |
| - | | |
| - | | |
| 5,443 | | |
| 1,447,556 | | |
| (1,538,815 | ) | |
| 31,173 | |
Investment property, net | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 22,416 | | |
| 42,558 | | |
| (1,963 | ) | |
| 63,011 | |
Property, plant and equipment, net | |
| 142,228 | | |
| 153,456 | | |
| 7,056 | | |
| 749 | | |
| 181 | | |
| 6,845 | | |
| 1,653 | | |
| (8,998 | ) | |
| 303,170 | |
Intangible assets and goodwill, net | |
| 142,499 | | |
| 257,580 | | |
| 322,625 | | |
| 351 | | |
| - | | |
| 733 | | |
| 14,575 | | |
| 5,028 | | |
| 743,391 | |
Right-of-use assets, net | |
| 3,825 | | |
| 3,890 | | |
| 5,308 | | |
| 61 | | |
| 17 | | |
| 1,888 | | |
| 40,789 | | |
| (8,061 | ) | |
| 47,717 | |
Deferred income tax asset | |
| 180,586 | | |
| 4,717 | | |
| 21,304 | | |
| - | | |
| 644 | | |
| 16,960 | | |
| 47,038 | | |
| 5,097 | | |
| 276,346 | |
Total non-current assets | |
| 923,625 | | |
| 516,390 | | |
| 412,205 | | |
| 669,898 | | |
| 20,408 | | |
| 111,528 | | |
| 2,218,273 | | |
| (1,855,349 | ) | |
| 3,016,978 | |
Total assets | |
| 2,387,754 | | |
| 776,202 | | |
| 656,985 | | |
| 1,014,697 | | |
| 29,935 | | |
| 604,913 | | |
| 2,406,446 | | |
| (2,039,801 | ) | |
| 5,837,131 | |
Liabilities.- | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Borrowings | |
| 136,512 | | |
| 27,046 | | |
| 3,687 | | |
| 45 | | |
| 18 | | |
| 69,065 | | |
| 13,573 | | |
| (8,606 | ) | |
| 241,340 | |
Bonds | |
| 4,896 | | |
| - | | |
| 36,637 | | |
| 24,496 | | |
| - | | |
| - | | |
| 3,809 | | |
| - | | |
| 69,838 | |
Trade accounts payable | |
| 699,851 | | |
| 67,686 | | |
| 44,210 | | |
| 30,637 | | |
| 464 | | |
| 30,401 | | |
| 38,894 | | |
| 683 | | |
| 912,826 | |
Accounts payable to related parties | |
| 130,848 | | |
| 1,079 | | |
| 47,340 | | |
| 42,185 | | |
| 19 | | |
| 19,155 | | |
| 13,623 | | |
| (203,245 | ) | |
| 51,004 | |
Current income tax | |
| 59,407 | | |
| 15,748 | | |
| 17,922 | | |
| - | | |
| 347 | | |
| 1,058 | | |
| 476 | | |
| - | | |
| 94,958 | |
Other accounts payable | |
| 560,920 | | |
| 23,116 | | |
| 38,198 | | |
| 9,104 | | |
| 791 | | |
| 91,342 | | |
| 31,510 | | |
| - | | |
| 754,981 | |
Provisions | |
| 71,301 | | |
| 25,498 | | |
| 4,158 | | |
| - | | |
| - | | |
| 560 | | |
| 54,028 | | |
| - | | |
| 155,545 | |
Total current liabilities | |
| 1,663,735 | | |
| 160,173 | | |
| 192,152 | | |
| 106,467 | | |
| 1,639 | | |
| 211,581 | | |
| 155,913 | | |
| (211,168 | ) | |
| 2,280,492 | |
Borrowings | |
| 5,382 | | |
| 121,693 | | |
| 1,721 | | |
| 15 | | |
| - | | |
| 5,315 | | |
| 205,244 | | |
| (810 | ) | |
| 338,560 | |
Long-term bonds | |
| 21,386 | | |
| - | | |
| 215,296 | | |
| 602,201 | | |
| - | | |
| - | | |
| 352,201 | | |
| - | | |
| 1,191,084 | |
Other long-term accounts payable | |
| 54,026 | | |
| - | | |
| 8,163 | | |
| 219 | | |
| 2,862 | | |
| 24,427 | | |
| 2,672 | | |
| - | | |
| 92,369 | |
Long-term accounts payable to related parties | |
| 25,957 | | |
| - | | |
| 1,006 | | |
| 88,213 | | |
| 24,671 | | |
| - | | |
| 197,844 | | |
| (286,979 | ) | |
| 50,712 | |
Provisions | |
| 56,362 | | |
| 55,279 | | |
| 33,188 | | |
| 3,039 | | |
| - | | |
| - | | |
| 181,629 | | |
| - | | |
| 329,497 | |
Deferred income tax liability | |
| 19,705 | | |
| 31,187 | | |
| - | | |
| 47,515 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 98,407 | |
Total non-current liabilities | |
| 182,818 | | |
| 208,159 | | |
| 259,374 | | |
| 741,202 | | |
| 27,533 | | |
| 29,742 | | |
| 939,590 | | |
| (287,789 | ) | |
| 2,100,629 | |
Total liabilities | |
| 1,846,553 | | |
| 368,332 | | |
| 451,526 | | |
| 847,669 | | |
| 29,172 | | |
| 241,323 | | |
| 1,095,503 | | |
| (498,957 | ) | |
| 4,381,121 | |
Equity attributable to controlling interest in the Company | |
| 528,033 | | |
| 378,653 | | |
| 149,904 | | |
| 125,271 | | |
| 763 | | |
| 139,728 | | |
| 1,308,104 | | |
| (1,427,411 | ) | |
| 1,203,045 | |
Non-controlling interest | |
| 13,168 | | |
| 29,217 | | |
| 55,555 | | |
| 41,757 | | |
| - | | |
| 223,862 | | |
| 2,839 | | |
| (113,433 | ) | |
| 252,965 | |
Total liabilities and equity | |
| 2,387,754 | | |
| 776,202 | | |
| 656,985 | | |
| 1,014,697 | | |
| 29,935 | | |
| 604,913 | | |
| 2,406,446 | | |
| (2,039,801 | ) | |
| 5,837,131 | |
AENZA S.A.A. and Subsidiaries
Notes to the Consolidated
Financial Statements
December 31, 2021 and 2022
| |
Engineering | | |
| | |
Infrastructure | | |
| | |
Parent | | |
| | |
| |
In thousands of soles | |
and construction | | |
Energy | | |
Toll roads | | |
Transportation | | |
Water treatment | | |
Real estate | | |
Company operations | | |
Eliminations | | |
Consolidated | |
As of December 31, 2022 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Assets.- | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Cash and cash equivalent | |
209,737 | | |
104,553 | | |
130,213 | | |
171,747 | | |
2,910 | | |
111,487 | | |
186,907 | | |
- | | |
917,554 | |
Trade accounts receivables, net | |
| 697,512 | | |
| 80,245 | | |
| 34,183 | | |
| 118,867 | | |
| 898 | | |
| 146,316 | | |
| 561 | | |
| - | | |
| 1,078,582 | |
Accounts receivable from related parties | |
| 86,146 | | |
| 68 | | |
| 51,523 | | |
| 4,455 | | |
| 52 | | |
| 378 | | |
| 115,736 | | |
| (230,613 | ) | |
| 27,745 | |
Other accounts receivable | |
| 298,784 | | |
| 39,921 | | |
| 28,902 | | |
| 15,229 | | |
| 30 | | |
| 5,380 | | |
| 7,294 | | |
| (2,345 | ) | |
| 393,195 | |
Inventories, net | |
| 41,933 | | |
| 29,935 | | |
| 9,655 | | |
| 39,780 | | |
| - | | |
| 227,067 | | |
| - | | |
| (1,587 | ) | |
| 346,783 | |
Prepaid expenses | |
| 10,945 | | |
| 2,055 | | |
| 5,496 | | |
| 369 | | |
| 160 | | |
| 448 | | |
| 8,625 | | |
| - | | |
| 28,098 | |
Total current assets | |
| 1,345,057 | | |
| 256,777 | | |
| 259,972 | | |
| 350,447 | | |
| 4,050 | | |
| 491,076 | | |
| 319,123 | | |
| (234,545 | ) | |
| 2,791,957 | |
Long-term trade accounts receivable, net | |
| 2,806 | | |
| - | | |
| 16,215 | | |
| 699,487 | | |
| 1,392 | | |
| 3,969 | | |
| - | | |
| - | | |
| 723,869 | |
Long-term accounts receivable from related parties | |
| 299,268 | | |
| - | | |
| 15,858 | | |
| 42 | | |
| 14,015 | | |
| - | | |
| 602,004 | | |
| (388,795 | ) | |
| 542,392 | |
Prepaid expenses | |
| - | | |
| 826 | | |
| 14,549 | | |
| 1,731 | | |
| 632 | | |
| - | | |
| 65 | | |
| (510 | ) | |
| 17,293 | |
Other long-term accounts receivable | |
| 101,366 | | |
| 89,782 | | |
| - | | |
| - | | |
| 7,346 | | |
| 55,347 | | |
| 31,889 | | |
| - | | |
| 285,730 | |
Inventories, net | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 65,553 | | |
| - | | |
| - | | |
| 65,553 | |
Investments in associates and joint ventures | |
| 975 | | |
| 12,049 | | |
| - | | |
| - | | |
| - | | |
| 2,752 | | |
| 1,509,790 | | |
| (1,510,650 | ) | |
| 14,916 | |
Investment property, net | |
| - | | |
| - | | |
| - | | |
| 1,507 | | |
| - | | |
| 19,823 | | |
| 40,594 | | |
| - | | |
| 61,924 | |
Property, plant and equipment, net | |
| 102,822 | | |
| 176,596 | | |
| 6,193 | | |
| 848 | | |
| 150 | | |
| 7,531 | | |
| 1,286 | | |
| (10,961 | ) | |
| 284,465 | |
Intangible assets and goodwill, net | |
| 131,431 | | |
| 363,066 | | |
| 274,597 | | |
| 238 | | |
| - | | |
| 615 | | |
| 13,414 | | |
| 3,975 | | |
| 787,336 | |
Right-of-use assets, net | |
| 8,745 | | |
| 12,795 | | |
| 7,106 | | |
| 23 | | |
| 143 | | |
| 2,580 | | |
| 38,485 | | |
| (19,670 | ) | |
| 50,207 | |
Deferred income tax asset | |
| 175,702 | | |
| 4,572 | | |
| 26,787 | | |
| - | | |
| 415 | | |
| 23,781 | | |
| 59,316 | | |
| 5,065 | | |
| 295,638 | |
Total non-current assets | |
| 823,115 | | |
| 659,686 | | |
| 361,305 | | |
| 703,876 | | |
| 24,093 | | |
| 181,951 | | |
| 2,296,843 | | |
| (1,921,546 | ) | |
| 3,129,323 | |
Total assets | |
| 2,168,172 | | |
| 916,463 | | |
| 621,277 | | |
| 1,054,323 | | |
| 28,143 | | |
| 673,027 | | |
| 2,615,966 | | |
| (2,156,091 | ) | |
| 5,921,280 | |
Liabilities.- | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Borrowings | |
| 19,191 | | |
| 38,612 | | |
| 3,844 | | |
| 17 | | |
| 6 | | |
| 43,118 | | |
| 480,735 | | |
| (11,261 | ) | |
| 574,262 | |
Bonds | |
| 4,554 | | |
| - | | |
| 41,343 | | |
| 31,203 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 77,100 | |
Trade accounts payable | |
| 740,142 | | |
| 124,259 | | |
| 52,916 | | |
| 52,292 | | |
| 223 | | |
| 35,939 | | |
| 16,950 | | |
| 4,535 | | |
| 1,027,256 | |
Accounts payable to related parties | |
| 297,505 | | |
| 2,734 | | |
| 46,257 | | |
| 22,421 | | |
| 296 | | |
| 12,227 | | |
| 20,291 | | |
| (348,243 | ) | |
| 53,488 | |
Current income tax | |
| 12,495 | | |
| 247 | | |
| 8,609 | | |
| 2,433 | | |
| 104 | | |
| 45,092 | | |
| 672 | | |
| - | | |
| 69,652 | |
Other accounts payable | |
| 490,494 | | |
| 19,724 | | |
| 49,187 | | |
| 9,146 | | |
| 1,298 | | |
| 115,661 | | |
| 24,837 | | |
| (4,905 | ) | |
| 705,442 | |
Provisions | |
| 81,288 | | |
| 20,535 | | |
| 1,722 | | |
| 1,197 | | |
| - | | |
| 540 | | |
| 27,644 | | |
| - | | |
| 132,926 | |
Total current liabilities | |
| 1,645,669 | | |
| 206,111 | | |
| 203,878 | | |
| 118,709 | | |
| 1,927 | | |
| 252,577 | | |
| 571,129 | | |
| (359,874 | ) | |
| 2,640,126 | |
Borrowings | |
| 6,480 | | |
| 100,597 | | |
| 3,462 | | |
| - | | |
| 138 | | |
| 10,852 | | |
| 192,435 | | |
| (8,333 | ) | |
| 305,631 | |
Long-term bonds | |
| 16,719 | | |
| - | | |
| 177,341 | | |
| 598,753 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 792,813 | |
Long-term trade accounts payable | |
| - | | |
| - | | |
| - | | |
| 9,757 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 9,757 | |
Other long-term accounts payable | |
| 94,261 | | |
| - | | |
| 2,243 | | |
| 189 | | |
| 2,932 | | |
| - | | |
| 2,694 | | |
| - | | |
| 102,319 | |
Long-term accounts payable to related parties | |
| 7,886 | | |
| 57,300 | | |
| 1,176 | | |
| 27,294 | | |
| 21,663 | | |
| - | | |
| 189,451 | | |
| (277,477 | ) | |
| 27,293 | |
Provisions | |
| 11,453 | | |
| 49,701 | | |
| 11,463 | | |
| 4,947 | | |
| - | | |
| - | | |
| 491,463 | | |
| - | | |
| 569,027 | |
Deferred income tax liability | |
| 16,670 | | |
| 53,242 | | |
| - | | |
| 58,396 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 128,308 | |
Total non-current liabilities | |
| 153,469 | | |
|