Reports by the Board of Directors of Grupo Carso, S.A.B. de C.V. on the principal accounting and information policies and criteria followed in the preparation of the Company’s financial statements and on the operations and activities in which it engaged, in conformance with Article 28, fraction IV, subparagraphs d) and e) of the Securities Law.
Principal accounting and information policies and criteria followed in the preparation of the financial statements.
The Board of Directors has reviewed and approved, with the prior favorable opinion of the Company Practices and Audits Committee, the accounting and information policies and criteria that were utilized in the preparation of the consolidated financial statements of Grupo Carso, S.A.B. de C.V. and its subsidiaries up to December 31 of 2022, and that are referenced to the following aspects, among others:
1. Activities
2. Significant events
3. Combined businesses
4. Consolidated subsidiaries
5. Cash and cash equivalents
6. Securities held at maturity
7. Accounts receivable
8. Net investment in leased assets
9. Recoverable taxes
10. Inventories
11. Rights of use assets
12. Lease liabilities
13. Administration of financial risks
14. Financial instruments
15. Derivative financial instruments
16. Real estate, machinery and equipment
17. Investment properties
18. Investments in associated companies stock, joint businesses and other
19. Other assets
20. Intangible assets
21. Short- and long-term debt
22. Other accounts payable and accumulated liabilities
23. Reserve accounts
24. BEmployee retirement benefits
25. Accounting capital
26. Balances and transactions with related parties
27. Income
28. Costs and expenses by classification
29. Other (income) expenses, Net
30. Tax on profits
31. Commitments
32. Contingencies
33. Information by segments
34. Adoption of the New and Revised International Financial Information Standards
35. Principal accounting policies
36. Critical accounting judgments and key sources of uncertainty in the estimates.
37. Transactions that did not produce cash flow
38. Authorization for the issuance of the consolidated financial statements
The details and scope of the accounting and information policies and criteria indicated above are contained in Note No. 35, Principal accounting policies of the said financial statements, and their respective texts are considered to be reproduced here as if they actually were.
Matters established in the Securities Law
During the fiscal year of 2022 and up to the present date, the Board of Directors of Grupo Carso, S.A.B. de C.V. held several meetings in which the information related to the results and operations of the Company and its subsidiaries, as well as its consolidated and unconsolidated financial statements were submitted to the directors. In the said meetings the directors dealt with various matters, among which were those matters established in the Securities Law, and they approved, with the prior positive opinión of the Company Practices and Audits Committee the following subjects:
1) The operations with related parties, successively executed by some of the Grupo Carso, S.A.B. de C.V. subsidiaries, each of whom represents more than one percent of the company’s consolidated assets, in conformance with the following:
a.Transactions carried out for 10,119,963 thousands of pesos between Empresa de Servicios y Soporte Integral GC, S.A.P.I. de C.V. and (i) Carso Infraestructura y Construcción, S.A. de C.V. (“Cicsa”) and some of its subsidiaries: fiber optic downspouts (from the post to the well); installation of cameras (Ciudad Segura); installation of fiber optics (external); engineering works (design of the telephony and internet connectivity network for Telmex companies; (ii) Grupo Condumex, S.A. de C.V. (“Grupo Condumex”) and some of its subsidiaries: Installation of fiber optics; high zero wiring; reel cables; aerial cable; telephonic cable; fiber optic cable, and electronic cable, in addition to building the structures through which the fiber optic passes; and (iii) other works.
b.Transactions carried out for 4,054,046 thousands of pesos between Red Nacional Última Milla, S.A.P.I. de C.V. and (i) Grupo Condumex and some of its subsidiaries: sale of telephone wire; (ii) Cicsa and some of its subsidiaries: downspouts; high zero; maintenance and duct work; (iii) Carso Eficentrum, S.A. de C.V.: commission for mediation; (iv) Elementia Materiales, S.A.P.I. de C.V.: Scrapping of cable for recovery of copper; and (v) other works.
c.Transactions carried out for 3,414,430 thousands of pesos between Aptiv Services US LLC and other companies and Grupo Condumex and some of its subsidiaries: sale of harnesses, cable and automotive engineering services.
d. Transactions carried out for 2,660,277 thousands of pesos between Autovía Mitla Tehuantepec, S.A. de C.V. and Cicsa and some of its subsidiaries: construction.
All the operations with related parties were reviewed by Galaz, Yamazaki, Ruiz Urquiza, S.C., and a summary of their review is found in Note No. 26 of the financial statements of Grupo Carso, S.A.B. de C.V. and subsidiaries up to December 31 of 2022.
2)The ratification of the public accounting firm of Galaz, Yamazaki, Ruiz Urquiza, S.C. to perform the external auditing services of the consolidated financial statements of Grupo Carso, S.A.B. de C.V. and its subsidiaries up to December 31 of 2022, as well as the ratification of its fees
3) The consolidated financial statements of Grupo Carso, S.A.B. de C.V. and its subsidiaries up to December 31 of 2022, to be submitted to the consideration of the Company’s annual general ordinary shareholders’ meeting.
Chairman of the Board of Directors
Lic. Carlos Slim Domit
