The steel company AHMSA, the only Mexican supplier of sheet metal, tinplate and chrome plate, faces significant risks related to the progress of its business.
In general, the instability in international steel prices in recent years, in addition to the lack of investment and maintenance in the company’s industrial plant and its iron and coal mines, have caused a significant reduction in steel production.
As a result, AHMSA’s operating results and cash flow were affected and a delay was generated in the fulfillment of the company’s short-term obligations, mainly in the payment to suppliers and financial creditors and taxes.
Resultados financieros de la empresa
In addition, on June 10, 2020 and October 5, 2021, Cargill Financial Services International, the company’s main financial creditor, notified the early expiration of its credits and, on June 18, 2020, unilaterally, the Federal Commission of Electricity (CFE) announced the cancellation of thermal coal supply contracts for thermoelectric plants.
The consolidated financial statements have been prepared under the assumption that the company will continue as a going concern.
As shown in the consolidated financial statements, during the period ended March 31, 2022 and the year ended December 31, 2021, AHMSA presents a consolidated net profit and loss of 345 and 631 million pesos, respectively, and at those dates its current liabilities exceed its current assets by 26,372 and 27,571 million pesos, respectively.
AHMSA
In addition, as of March 31, 2022, AHMSA has a deficit in its stockholders’ equity, which according to the Commercial Companies Law could be cause for the dissolution of the entity at the request of an interested third party.
These facts indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.
The consolidated financial statements do not include those adjustments related to the valuation and classification of assets and the classification and amount of liabilities, which could be necessary in the event that the company could not continue in operation.
As part of the company‘s efforts to obtain additional resources, on November 30, 2020, a credit line of up to 4,000 million pesos was obtained with Almacenadora Afirme, for the acquisition of raw materials.
