Consolidated
FINANCIAL STATEMENTS
Corresponding to the period ending August 31st 2024 and December 31st 2023.
Report of Independent Auditor
To the
Partners and Directors of
Suzhou Shareate Tools Ltd.
Auditor’s Opinion
We have audited the financial statements of Drillco Tool S.A. and its subsidiaries, which comprise the
statements of financial position as of August 31 2024, and December 31 2023, and the related statements of
comprehensive income, changes in equity and cash flows for the eight months ended as of August 31, 2024
and the year ended as of December 31, 2023 and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of Drillco Tools S.A and its subsidiaries as of August 31 2024, and December 31 2023, and the
results of its operations and its cash flows for the eight months ended as of August 31, 2024 and the year
ended as of December 31, 2023, in accordance with the International Financial Reporting Standards.
Basis for the opinion
We conducted our audits in accordance with generally accepted auditing standards in Chile. Our
responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of
the Financial Statements” section of our report. We are independent of Drillco Tools S.A and its subsidiaries,
in accordance with ethical requirements that are relevant to our audits of the financial statements, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter: Special purpose of the Consolidated Financial Statements and use
restrictions
This report is issued to all shareholders of Suzhou Shareate Tools Ltd. solely for the purpose of their
proposed share acquisition of Drillco Tools S.A. and should not be used for any other purpose. We expressly
disclaim any liability or obligation to any other party regarding the content of this report. Our opinion is not
modified in respect of this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with International Financial Reporting Standards. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatements, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions and
events, considered in the aggregate, that raise substantial doubt about the ability of Drillco Tools S.A and its
subsidiaries, to continue as a going concern for at least twelve months after the end of the reporting period,
but not limited to that period.
Forvis Mazars Auditores Consultores Limitada 1
Responsibilities of the Auditor for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are
free of material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with Generally Accepted Auditing Standards in Chile
will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omission, concealment, misrepresentation or the
override of controls by Management. A misstatement is considered material if, individually or in the
aggregate, it could influence the judgment of a reasonable user of these financial statements.
As part of an audit conducted in accordance with Generally Accepted Auditing Standards in Chile, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement in the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks. Those procedures
include examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the internal control of Drillco Tools S.A and its subsidiaries. Accordingly, no such
opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as the overall presentation of the financial
statements.
Conclude whether, in our opinion, there are events or conditions that, considered in the aggregate
raise substantial doubt about the capacity of Drillco Tools S.A and its subsidiaries, to continue as a
going concern for a reasonable period of time.
We communicate with those charged with governance, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies and material weaknesses in
internal control that we identified during our audit.
Juan Pablo Hess I. Forvis Mazars Auditores Consultores Ltda.
Santiago, December 24, 2024
Forvis Mazars Auditores Consultores Limitada 2
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED FINANCIAL STATEMENTS
For the periods ended August 31, 2024, and December 31, 2023.
$ - Chilean Pesos
ThUS$ - In thousand of Chilean pesos
UF - Inflation-linked units of account
USD - United States Dollars
PEN -
Drillco Tools S.A. and Subsidiaries
TABLE OF CONTENTS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION .........................................................................1
CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION ......................................................................3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME BY FUNCTION ........................................4
CONSOLIDATED STATEMENTS OF CASH FLOWS, INDIRECT ....................................................................5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................8
Note 1.- General information. .................................................................................................................8
Note 2.- Basis of preparation and presentation of the financial statements. .............................................9
Note 3.- Summary of significant accounting policies. ............................................................................14
Note 4.- Financial Risk Management ....................................................................................................26
Note 5 - Cash and cash equivalents......................................................................................................28
Note 6.- Other non-financial assets, current. .......................................................................................28
Note 7.-Trade and other receivables. ....................................................................................................29
Note 8.-Balances and transactions with related parties.........................................................................29
Note 9- Inventories. .............................................................................................................................31
Note 10.-Current Tax Assets and Liabilities ...........................................................................................32
Note 11.- Investment accounted using equity method. ..........................................................................32
Note 12.-Intangible assets other than goodwill .....................................................................................33
Note 13.- Goodwill...............................................................................................................................34
Note 14.- Property, plant and equipment. .............................................................................................35
Note 15.- Income tax and deferred taxes...............................................................................................37
Note 16 - Other financial liabilities. ......................................................................................................38
Drillco Tools S.A. and Subsidiaries
Note 17.-Trade and other payables. ......................................................................................................43
Nota 18.- Provisions for employee benefits ...........................................................................................43
Note 19.- Equity. ..................................................................................................................................44
Note 20.- Revenues. ............................................................................................................................45
Note 21.- Cost of sales.........................................................................................................................45
Note 22.- Operating Expenses. ............................................................................................................46
Note 23.- Selling Expenses. ..................................................................................................................46
Note 24.- Research and Development Expenses. ..................................................................................46
Note 25.- Financial Statements of the Companies included in the consolidation. ...................................47
Note 26.- Foreign currency translation differences. ...............................................................................53
Note 27.- Indexation units. ..................................................................................................................53
Note 28.- Provisions, contingent assets and liabilities ...........................................................................53
Note 29-. Sanctions .............................................................................................................................54
Note 30.- Subsequent events. ..............................................................................................................54
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of August 31, 2024 and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
08.31.2024 12.31.2023
Assets Note ThUS$ ThUS$
Current assets
Cash and cash equivalents 5 1,317 1,332
Other non-financial assets, current 6 971 1,126
Trade and other receivables, current 7 8,224 7,899
Accounts receivable from related entities, current 8 132 780
Inventories 9 19,147 21,087
Current tax assets 10 1,504 1,455
Total current assets 31,295 33,679
Non-Current Assets
Accounts receivable from related parties, non-current 8 1,646 1,710
Investment accounted using equity method 11 4,107 5,335
Property, plant and equipment, net 14 8,623 8,708
Intangible assets other than goodwill 12 122 129
Goodwill 13 395 395
Deferred tax assets 15 1,929 2,129
Total non-current assets 16,822 18,406
TOTAL ASSETS 48,117 52,085
The accompanying notes from notes 1 to 30 are an integral part of these consolidated financial statements
1
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of August 31, 2024 and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
08.31.2024 12.31.2023
Equity and liabilities Note ThUS$ ThUS$
Liabilities
Current liabilities
Other financial liabilities, current 16 12,043 13,512
Trade accounts payable and other payables 17 12,943 13,364
Current tax liabilities 10 138 348
Current provisions for employee benefits 18 1,207 1,532
Total current liabilities 26,331 28,756
Non-current liabilities
Other financial liabilities, non-current 16 3,320 3,863
Accounts payable non-current 17 - 154
Deferred tax liabilities 15 2,146 2,131
Non-current provisions for employee benefits 18 40 37
Total non-current liabilities 5,506 6,185
Total liabilities 31,837 34,941
Equity
Issued capital 19 11,705 11,705
Accumulated profit 19 2,384 2,490
Other reserves 19 2,212 2,969
Equity attributable to owners of parent 16,301 17,164
Non-controlling interests 19 (21) (20)
Total equity 16,280 17,144
Total equity and liabilities 48,117 52,085
The accompanying notes from notes 1 to 30 are an integral part of these consolidated financial statements
2
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION
For the periods ended August 31, 2024 and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
Accumulated
08.31.2024 12.31.2023
Note ThUS$ ThUS$
Revenues 20 25,544 41,192
Cost of sales 21 (17,864) (29,200)
Gross profit 7,680 11,992
Operating expenses 22 (1,037) (1,718)
Selling expenses 23 (4,743) (6,758)
Research and development expenses 24 (893) (1,393)
Impairment of inventories 9.b) (23) (178)
Impairment of accounts receivable 7.b) (114) (110)
Other income (losses) 34 55
Financial income 12 3
Financial cost (923) (1,523)
Profits in associates according to participation method 11 923 2,354
Foreign currency translation differences 26 (127) (295)
Indexation units 27 (34) 7
Profits before tax 755 2,436
Income tax (expenses) income 15 (354) 113
Profit (loss) for the period 401 2,549
Profit (loss) attributable to
Owners of the Parent Company 402 2,549
Non-controlling interests (1) -
Profit (loss) for the period 401 2,549
Profits per share
Profit (loss) diluted per share from continuing operations US$/ Share 6 37
Profit (loss) per share in discontinued operations US$/Share - -
Profit (loss) per share 6 37
Average number of ordinary shares N° shares 68,487 68,487
The accompanying notes from note1 to 30 are an integral part of these consolidated financial statements.
3
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME BY
FUNCTION
For the years ended August 31, 2024 and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
Accumulated
08.31.2024 12.31.2023
Note ThUS$ ThUS$
Statement of comprehensive income
Profit (loss) for the period 401 2,549
Other comprehensive income, before tax
Reevaluation surplus 114 371
Exchange differences per conversion (840) 702
Profit before income tax (325) 3,622
Income tax relating to other comprehensive income (31) (100)
Total comprehensive income (356) 3,522
Comprehensive income attributable to:
Owners of the Parent Company (355) 3,522
Non-controlling interests (1) -
Total comprehensive income (356) 3,522
The accompanying notes from note1 to 30 are an integral part of these consolidated financial statements.
4
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS, INDIRECT
For the years ended August 31, 2024 and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
Accumulated
Cash flows from (used in) operating activities 08.31.2024 12.31.2023
Note
ThUS$ ThUS$
Profit (loss) for the period 401 2,549
Adjustments for reconciliation of profits (losses)
Income tax expenses 15 202 (113)
Decreases (increases) in inventories 9 1,940 (1,521)
Increase (decrease) in accounts receivable of trade origin (325) 1,097
Increases (decreases) in other accounts payable of trade origin (582) 1,940
Increases (decreases) in other accounts receivable 818 (1,280)
Increases (decreases) in other accounts payable (325) 749
Depreciation and amortization expenses 12-14 667 1,190
Foreign currency losses (gains) 26 127 295
Losses (gains) of indexation units 27 34 (7)
Accrued interest 830 1,432
Earnings accrued in associates (923) (2,356)
Subsidiaries exchange differences per conversion (840) (1,543)
Other adjustments for items other than cash (476) (811)
Total adjustments for reconciliation of profits (losses) 1,147 (928)
Net cash flows from (used in) operations activities 1,548 1,621
Cash flows from (used in) investing activities
Purchases of property, plant and equipment 14 (416) (1,842)
Purchases of intangible assets 12 (156) (83)
Net cash flows from (used in) investment activities (572) (1,925)
Cash flows from (used in) financing activities
Dividends Received 2,323 689
Dividends paid (508) (669)
Payment of loans (2,806) (105)
Net cash flows from (used in) financing activities (991) (85)
Net increase (decrease) in cash and cash equivalents (15) (389)
Cash and cash equivalents at beginning of the year 5 1,332 1,721
Cash and cash equivalents at end of period 5 1,317 1,332
The accompanying notes from notes 1 to 30 are an integral part of these consolidated financial statements.
5
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN NET EQUITY
As of August 31, 2024, and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
Other Reserves
Equity
Issued capital Exchange
Revaluation Total other Earnings (losses) attributable to the Non-controlling
differences per Other Reserves Total equity
surplus reserves accumulated controller’s interests
conversion
owners
Starting balance as of January 01, 2024 11,705 1,833 1,196 (60) 2,969 2,490 17,164 (20) 17,144
Changes in equity
Comprehensive income
Profit loss for the period - - - - - 402 402 (1) 401
Revaluation surplus, net of deferred
taxes - 83 - - 83 - 83 - 83
Exchange differences per conversion - - (840) - (840) - (840) - (840)
Total comprehensive income - 83 (840) - (757) 402 (355) (1) (356)
Dividends - - - - - (508) (508) - (508)
Total of changes in equity - 83 (840) - (757) (106) (863) (1) (864)
Final balance as of August 31, 2024 11,705 1,916 356 (60) 2,212 2,384 16,301 (21) 16,280
The accompanying notes from notes 1 to 30 are an integral part of these consolidated financial statements.
6
Drillco Tools S.A. and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN NET EQUITY
As of August 31, 2024 and December 31, 2023
(Expressed in thousands of United States dollars - ThUS$)
Other Reserves
Equity
Exchange
Revaluation Total other Earnings (losses) attributable to the Non-controlling
Issued capital differences per Other Reserves Total equity
surplus reserves accumulated controller’s interests
conversion
owners
Starting balance as of January 01, 2023 11,705 1,562 494 (60) 1,996 610 14,311 (20) 14,291
Changes in equity
Comprehensive income
Profit loss for the period - - - - - 2,549 2,549 - 2,549
Revaluation surplus, net of de-
ferred taxes - 271 - - 271 - 271 - 271
Exchange differences per conver-
sion - - 702 - 702 - 702 - 702
Total comprehensive income - 271 702 - 973 2,549 3,522 - 3,522
Dividends - - - - - (669) (669) - (669)
Total of changes in equity - 271 702 - 973 1,880 2,853 - 2,853
Final balance as of December 31, 2023 11,705 1,833 1,196 (60) 2,969 2,490 17,164 (20) 17,144
The accompanying notes from notes 1 to 30 are an integral part of these consolidated financial statements.
7
Drillco Tools S.A. and Subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended August 31, 2024 and December 31, 2023
Note 1.- General information.
Drillco Tools S.A., identified by Taxpayer Number 88.859.600-3 (hereinafter also referred to as the Com-
pany, the Parent Company or the Group), is a closely-held corporation incorporated with Chilean capital in
May, 1982. Its corporate purpose is the design, manufacture and marketing of Down The Hole (DTH) drilling
products, such as percussion hammers, drill bits and accessories for the mining, construction, oil and wa-
ter well industries.
1.1.- Stock capital and ownership.
As of August 31, 2024, the stock capital amounts to ThUS$ 11,705 (ThCh$10,266,866), and is divided into
68,487 nominative shares with no par value, which are fully subscribed and paid in.
As of August 31, 2024 and December 31, 2023, the ownership structure of Drillco Tools S.A. is made up of
the following shareholders:
Shares Ownership%
Taxpayer No Shareholder 08.31.2024 12.31.2023 08.31.2024 12.31.2023
96.888.700-9 Holding Empresas Drillco Ltda. 65,063 65,063 95.00% 95.00%
78.238.060-5 Inversiones Gardut Ltda. 3,424 3,424 5.00% 5.00%
Total 68,487 68,487 100.00% 100.00%
1.2.- Subsidiaries included in the consolidated financial statements.
The subsidiaries included in these consolidated financial statements are the following:
08.31.2024 12.31.2023
Subsidiary Functional currency Country
Ownership % Ownership %
Drillco Tools INC. U.S. dollar United States 100% 100%
Drillco Tools Europa S.R.L. Euro Italy 95% 95%
Drillco Tools Perú S.A.C. Peruvian Sol Peru 100% 100%
Drillco Asia CO., LTD. Korean Won South Korea 100% 100%
Drillco Africa (PTY) LTD. South African Rand South Africa 100% 100%
Drillco Europe Limited. Pound Sterling England 100% 100%
Drillco Australia PTY LTD. Australian Dollar Australia 100% 100%
8
Drillco Tools S.A. and Subsidiaries
Note 1.- Company information, continued
1.3.- Board of Directors and Management.
Drillco Tools S.A. is managed by a Board of Directors made up of three standing directors, who are elected
for a period of three years, and may be re-elected indefinitely.
The current Board of Directors is made up of the following members:
Name Taxpayer No Position
Rolando Carmona Gómez 7.549.,209-K Chairman
Rodrigo Carmona Gómez 6.947.116-1 Director
Félix Tenorio Martínez 9.981.118-1 Director
Note 2.- Basis of preparation and presentation of the financial statements.
2.1.- Financial statements
These consolidated financial statements correspond to the period ended August 31, 2024 and December
31, 2023 have been prepared in accordance with the International Financial Reporting Standards (IFRS) and
its interpretations issued by the International Accounting Standards Board (hereinafter “IASB”).
These consolidated financial statements are issued to all shareholders of Suzhou Shareate Tools Ltd. solely
for the purpose of their proposed share acquisition of Drillco Tools S.A. and should not be used for any other
purpose.
These consolidated financial statements have been prepared based on the accounting records maintained
by the parent company y and by other entities that are part of the consolidated group.
2.2.- Information responsibility
The information presented in these consolidated financial statements is the responsibility of the Manage-
ment of Drillco Tools S.A. and Subsidiaries, which expressly state that the principles and criteria included
in the International Financial Reporting Standards (IFRS) have been fully applied.
The consolidated financial statements prepared by the company comply with the requirements of IFRS and
accurately and completely reflect the company's financial position, operation income, changes in share-
holders' equity and cash flows.
The consolidated financial statements have been reviewed and authorized for issuance by the Company's
Management as of December 24, 2024.
9
Drillco Tools S.A. and Subsidiaries
Note 2.- Basis of preparation and presentation of the financial statements, continued.
2.3.- Estimates, Judgments and Criteria used by Management
In the consolidated financial statements of Drillco Tools S.A. and Subsidiaries, certain judgments and esti-
mates made by Management have been used to quantify some of the assets, liabilities, income, expenses,
and commitments recorded therein. These estimates mainly involve the following:
Fair value of property, plant, and equipment
The useful life of property, plant and equipment, intangible assets, and their residual value.
Losses due to impairment of certain assets, including accounts receivable from customers.
Provisions for commitments acquired with third parties and contingent liabilities, and
The provisions that cover the different variables that affect the products in stock.
Although these estimates were made based on the best information available at the date of preparation of
these consolidated financial statements, it is possible that events that take place in the future require their
modification (upwards or downwards) in future periods, which would be carried out prospectively, recog-
nizing the effects of changes in estimates in the related future consolidated financial statements.
2.4.- Periods covered by the consolidated financial statements.
The consolidated financial statements cover the following periods:
Consolidated statements of financial position classified for the periods ended August 31, 2024,
and December 31, 2023.
Consolidated Statements of Income by Function for the periods ended August 31, 2024, and De-
cember 31,2023.
Consolidated Statements of Cash Flows (indirect method) for the periods ended August 31, 2024,
and December 31, 2023.
Consolidated Statements of Changes in Equity Net, for the periods ended August 31, 2024, and
December 31, 2023.
2.5.- Basis of consolidation.
a.- Subsidiaries.
The consolidated financial statements comprise the financial statements of the parent company and its
subsidiaries, including all assets, liabilities, income, expenses, and cash flows after making adjustments
and eliminations related to inter-company transactions between companies included in the consolidation.
10
Drillco Tools S.A. and Subsidiaries
Note 2.- Basis of preparation and presentation of the financial statements, continued.
2.5.- Basis of consolidation, continued.
Subsidiaries are all the entities over which Drillco Tools S.A. has the power to direct financial and operating
policies in accordance with International Financial Reporting Standard 10 (IFRS 10) “Consolidated and sep-
arate financial statements”. On the other hand, in accordance with this standard, the non-controlling inter-
est represents the portion of net assets and profit or loss not owned by the Group, which is presented sep-
arately in the statement of comprehensive income and within equity in the consolidated statement of finan-
cial position.
Subsidiaries are consolidated as of the date on which control is transferred and are excluded from consoli-
dation on the date on which control ceases.
The financial statements of the subsidiaries have been prepared as of the same date as those of the parent
company and consistent accounting policies have been applied, considering the specific nature of each
line of business.
b.- Transactions and non-controlling interest.
The portion of the net shareholders’ equity not owned by the Company is presented as non-controlling in-
terest in the Net shareholders’ equity item of the Classified Consolidated Statement of Financial Position.
Gains or losses attributable to the non-controlling interest are presented in the consolidated statement of
income by function as profit (loss) for the period.
2.6.- Presentation currency and functional currency
The consolidated financial statements are presented in dollars of the United States of America, which is the
functional currency of the parent company Drillco Tools S.A.
The functional currency has been determined as the currency of the main economic environment in which
the Company operates, as indicated in IAS 21.
The Company’s functional currency is the United States dollar (US$). Transactions in other currencies are
recorded and translated to US dollars at the exchange rate prevailing on the transaction date. Monetary as-
sets and liabilities in other currencies are translated into US dollars at the closing exchange rate of the state-
ments of financial position. Any inconsistencies arising from this translation are included within the Ex-
change differences item in the Consolidated Statement of Comprehensive Income.
Subsidiaries with a functional currency other than the US dollar are translated to the presentation currency
for purposes of consolidation as follows:
11
Drillco Tools S.A. and Subsidiaries
Note 2.- Basis of preparation and presentation of the financial statements, continued.
2.6.- Presentation currency and functional currency, continued.
These are translated to the presentation currency as follows:
a) The assets and liabilities of each statement of financial position are translated at the closing exchange
rate on the date of the consolidated statement of financial position;
b) The income and expenses of each income statement are converted at the average exchange rates of the
month in which they occur.
c) All resulting exchange differences are recognized as a separate component of net equity (other accu-
mulated translation reserves in comprehensive income).
2.7.- Basis of translation.
The following exchange rates were used for conversion and/or translation purposes of these Financial State-
ments.
Code 08.31.2024 12.31.2023
Currency
ISO USD USD
CLP Chilean Peso 0.001 0.001
EUR Euro 1.105 1.106
PEN Peruvian Sol 0.267 0.270
BRL Brazilian real 0.177 0.206
KRW Korean Won 0.001 0.001
ZAR South African Rand 0.056 0.055
GBP Pound sterling 1.312 1.275
AUD Australian Dollar 0.676 0.683
CAD Canadian dollar 0.741 0.757
2.8.- Classification of balances in current and non-current
In the consolidated statement of financial position, balances are classified according to their maturities, as
current those maturing in less than or equal to twelve months from the closing date of the financial state-
ments, and non-current those maturing in more than twelve months.
12
Drillco Tools S.A. and Subsidiaries
Note 2.- Basis of preparation and presentation of the financial statements, continued.
2.9.- Offsetting of balances and transactions
Under IAS 1, assets and liabilities and income and expenses cannot be offset against each other in the fi-
nancial statements, except where compensation is required or permitted by another standard and this
presentation reflects better the substance of a transaction.
Income and expenses arising from transactions which, contractually or by operation of a statute, provide
for the possibility of offsetting and that the Company intends to settle on a net basis or to realize the asset
and settle the liability simultaneously are presented net in the statement of comprehensive income and in
the statement of financial position.
2.10- New standards and interpretations.
a) The following amendments to the IFRS have been adopted in these consolidated financial state-
ments:
IFRS Amendments Mandatory effective date
Classification of Liabilities as Current or Non-Current (Amendments to Annual periods beginning on or after January 1,
IAS 1) 2024.
Annual periods beginning on or after January 1,
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
2024.
Annual periods beginning on or after January 1,
Non-current Liabilities with Covenants (Amendments to IAS 1)
2024.
Annual periods beginning on or after January 1,
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
2024.
The application of these Amendments has not had a significant effect on the amounts reported in these
financial statements.
b) New standards and amendments to IFRS that have been issued but not yet effective:
New IFRS Mandatory effective date
Annual periods beginning on or after January
IFRS 18, Presentation and Disclosure in Financial Statements
1, 2027
Annual periods beginning on or after January
IFRS 19 subsidiaries without public accountability : Disclosures
1, 2027
IFRS Amendments Mandatory effective date
Annual periods beginning on or after Wednes-
Lack of Exchangeability (Amendments to IAS 21)
day, January 1, 2025.
Amendments to the SASB sustainability standards to enhance their interna- Annual periods beginning on or after Wednes-
tional applicability day, January 1, 2025.
Amendments to the Classification and Measurement of Financial Instruments Annual periods beginning on or after Thurs-
(Amendments to IFRS 9 and IFRS 7 day, January 1, 2026.
The management has not had the opportunity to consider the potential impact of the adoption of these
new IFRS and the new amendments to the standards.
13
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies.
3.1.- Cash and cash equivalents
The Company considers as cash and cash equivalents the cash balances held in cash and in bank checking
accounts, highly liquid deposits and investments, with an original maturity that does not exceed 90 days
from the date of placement and whose risk of change in its value is not very significant.
3.2.- Statement of Cash Flows
The statement of cash flows shows the cash movements that took place during the periods, as determined
by the indirect method. Cash flows are the inflows of financial assets equivalent to cash, understood as
short-term investments of great liquidity and low risk of loss in value.
For presentation purposes, the consolidated statement of cash flows is classified into the following activi-
ties:
Operating activities: These are the activities that constitute the main source of revenue of the
group, and other activities that cannot be classified as investing or financing activities.
Investing Activities: These are activities involving the acquisition, transfer or disposal by other
means of non-current assets and other investments not included in cash and cash equivalents.
Financing activities: These are activities causing changes in the size and composition of net equity
and financial liabilities.
3.3.- Trade and other receivables
This correspond to assets arising from sales operations of products and/or services that the group markets
directly with its clients, without the intention of negotiating the account receivable.
All sales are performed under normal credit conditions, and the amounts of the accounts receivable do not
accrue interests. At the end of each reported period , the carrying amounts of trade and other receivables
are reviewed to determine whether there is any objective evidence that they will not be recoverable. If so,
an impairment loss is recognized immediately in income.
Measurement and recognition of expected credit losses
The group writes off a trade receivable when there is information indicating that the counterparty is in severe
financial difficulties and there is no realistic prospect of recovery, for example, where the counterparty has
been placed in liquidation or has entered bankruptcy proceedings. The Company applied the simplified ap-
proach of IFRS 9 to trade and other accounts receivable with similar risk characteristics. To measure ex-
pected credit losses, ratios are calculated for different ranges of past due days from the date of issue, and
based on shared credit risk characteristics.
14
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.3.- Trade and other receivables, continued.
The Group's policy for estimating impairment losses is as follows:
Delinquency bracket Provision percentagefor bad debts.
Less than one year. No Provision
More than 1 up to 2 years 10%
More than 2 up to 3 years 40%
Over three years 100%
This policy was modeled considering the following factors:
- The measurement of expected credit losses is based on the probability of default,
- the loss given default (i.e. the magnitude of the loss if there is a default) and,
- exposure to default.
The assessment of the probability of default and the loss given default are based on historical data ad-
justed for future information. Exposure to default is represented by the gross carrying value of assets at the
balance sheet date, the Company's understanding of the specific future financial needs of the debtors,
and other relevant future information.
3.4.- Inventories.
Inventories are goods or finished products that the Group maintains for sale or marketing in the course of
its business activities, products in manufacturing process, and materials and supplies used in the produc-
tion process or while providing services. This includes raw materials, supplies, products in process and fin-
ished products.
Inventories are valued at the lower of acquisition or production cost and net realizable value.
The net realizable value is the estimated selling price in the normal course of business, less marketing
and distribution expenses.
The cost of finished products and products in process includes the cost of raw materials, labor, and indirect
manufacturing expenses.
Finished products acquired from third parties, raw materials, supplies and materials are recorded at acqui-
sition cost plus all costs incurred until the goods are delivered to the warehouse.
15
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.4.- Inventories, continued.
Management determines the obsolescence of inventories when they technically have no possibility of being
used in the production process, have no market for sale or have no purchase, sale or use transactions for
more than 48 months.
3.5.- Income tax and deferred taxes.
Income tax is determined based on the current tax regulations and/or the tax rate applicable to each of the
consolidating companies.
The income tax expense for the period is determined as the sum of the current tax plus the variation in de-
ferred tax assets and liabilities and tax credits of the various companies comprising the group.
Deferred taxes are calculated on temporary differences arising between the tax bases of assets and liabili-
ties and their carrying amounts in the consolidated accounts.
Deferred taxes are determined using the tax rates contained in laws approved or about to be approved at
the closing date of the consolidated statement of financial position and that are expected to apply when
the corresponding deferred tax asset is realized or the deferred tax liability is settled.
Deferred tax assets, including those arising from tax losses, are recognized only when it is considered prob-
able that the consolidated entities will have sufficient future tax profits to recover deductions for temporary
differences and make tax credits effective.
For those items that are credited or charged to shareholders' equity, the associated deferred tax, if appli-
cable, is also charged to shareholders' equity.
At each accounting close, the recorded deferred taxes, both assets and liabilities, are reviewed in order to
check whether they are still valid, and appropriate corrections are introduced to them based on the out-
come of the analysis.
3.6.- Intangible assets other than goodwill
Intangible assets other than goodwill are measured at cost less any accumulated amortization and any
accumulated impairment loss.
Licenses and software are amortized over a period of 5 years and patents are amortized over a period of 20
years from their registration.
16
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.7.- Property, plant, and equipment.
Property, plant, and equipment, except for land, are recorded at cost net of accumulated depreciation and
impairment losses.
Land is valued annually at fair value as determined by independent experts. Changes in fair value are rec-
ognized in other comprehensive income and accumulated in Revaluation surplus in other reserves within
Shareholders’ equity.
In addition to the price paid for the acquisition of each item, all costs directly related to the location of the
asset in the place and under the conditions necessary for it to operate in the manner intended by Manage-
ment and the costs of expansion, modernization or improvement that represent an increase in productivity,
capacity or efficiency or an increase in useful life are also included.
The costs of replacements or renewals of complete elements that increase the useful life of the asset, or
its economic capacity, are recorded as the greater value of the respective assets, with the consequent ac-
counting withdrawal of the replaced or renewed elements.
Periodic expenses for maintenance, conservation and repair are recognized directly in profit or loss as costs
of the period in which they are incurred.
The Company considers that the carrying amount of the assets exceeds its recoverable value.
At the closing date or whenever there is an indication that there may be an impairment in the value of the
assets, the recoverable amount of the assets is compared with their net book value. Any recording or re-
versal of an impairment loss arising as a result of this comparison is recorded in other expenses by function
or other income by function in the Statements of Comprehensive Income.
Profits or losses arising from sales or withdrawals of property, plant and equipment are recognized as profit
or loss for the period and are calculated as the difference between the sales value and the net book value
of the asset.
Depreciation of Property, Plant and Equipment:
Property, plant and equipment are depreciated from the moment the assets are in working conditions, and
the cost of the different items that comprise property, plant and equipment are allocated on a straight-line
basis over the years of estimated technical useful life over which the Group companies expect to use them.
The useful lives of property, plant and equipment that are used for purposes of calculating depreciation
have been determined based on the technical specifications and expected use of these assets.
The useful lives of the items of property, plant and equipment and their residual value, if applicable, are
reviewed annually and, if appropriate, adjusted prospectively.
17
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.7.- Property, plant, and equipment, continued
Land is separately recognized from the buildings or facilities that may be placed on it, therefore, is not sub-
ject to depreciation.
Below, the useful life period used is presented by type of property, plant and equipment.:
Useful Life Ranges
Class
(years)
Construction and installations 4-20
Machineries and equipment 2-15
Tools 2-10
Information technology equipment 4
Other property, plant, and equipment 2-5
3.8.- Goodwill.
Goodwill represents the excess of the cost of acquisition over the fair value of the net identifiable assets of
the acquired company at the date of the transaction. Goodwill related to acquisitions of companies is in-
cluded in goodwill.
Separately recognized goodwill is tested for impairment annually and is valued at cost less accumulated
impairment losses. Impairment losses associated with goodwill, once recognized, are not reversible in sub-
sequent years. Gains and losses on the sale of a Company include the carrying amount of goodwill related
to the entity sold.
3.9.- Investments in associates.
The Company uses the equity method (or Valor Patrimonial in Spanish) to value its participation in invest-
ments in associates, recognizing in results the proportional shares accrued in the results of the issuing com-
pany in each period.
3.10.- Impairment of non-financial assets.
At the closing date of each period, it is evaluated whether there is any indication that any asset has suffered
impairment losses. In case there exists any sign of impairment an estimation will be performed of the re-
coverable amount of such asset to determine, in each case, the amount of the impairment. In the case of
identifiable assets that do not generate cash flows independently, the recovery of the cash generating unit
to which such asset belongs is estimated, understanding as such the lowest identifiable group of assets
generating independent cash entries.
18
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.10.- Impairment of non-financial assets, continued
The recoverable amount is the higher value of the market value less costs to sell and the value in use, with
value in use being understood to be the current value of estimated future cash flows.
To calculate the recovery value of property, plant and equipment and intangible assets, the value in use is
the criterion used by the Group in practically all cases.
If the recoverable amount is less than the net carrying value of the asset, the respective impairment loss
provision is recorded for the difference and charged to profit or loss in the consolidated statement of in-
come.
Impairment losses recognized for an asset in prior periods are reversed if there has been a change in the
estimates used to determine the asset’s recoverable amount, increasing the value of the asset with credit
to income with the limit of the book value that the asset would have had if the accounting adjustment had
not been made.
Non-financial assets that have suffered an impairment loss are subject to reviews once a year in case there
has been a reversal of the loss.
3.11.- Financial Instruments.
Financial assets and liabilities are recognized when the Company becomes a part of the contractual
clauses of the instrument.
Financial assets and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issuance of financial assets and liabili-
ties (other than financial assets and financial liabilities at fair value through profit or loss) are added or de-
ducted from the fair value of financial assets and liabilities, as appropriate, at initial recognition. Transac-
tion costs directly attributable to the acquisition of financial assets or liabilities at fair value through profit
or loss are immediately recognized in profit or loss.
Financial Assets
All conventional purchases or sales of financial assets are recognized and derecognized according to the
contract date. Conventional purchases or sales of a financial asset are purchases or sales under a contract
whose conditions require the delivery of the asset during a period that is generally regulated or arises from
a convention established in the corresponding market.
All recognized financial assets are subsequently measured in their entirety, either at amortized cost or at
fair value, depending on the classification of the financial assets.
19
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.11.- Financial instruments, continued.
Classification of financial assets
Financial assets that meet the following conditions are subsequently measured.
At amortized cost.
The asset is held within a business model the objective of which is to hold the assets to obtain the
contractual cash flows; and
the contractual conditions of the financial asset give rise, on specified dates, to cash flows that
are only payments of the principal and interest on the outstanding principal amount.
Financial assets that meet the following conditions are subsequently measured at fair value through Other
Comprehensive Income (FVTOCI):
the financial asset is maintained within a business model, whose objective is achieved by obtaining
contractual cash flows, selling financial assets; and
the contractual conditions of the financial asset give rise, on specified dates, to cash flows that are
only payments of the principal and interest on the outstanding principal amount.
All other financial assets that do not meet the above conditions are subsequently measured at fair value
through profit or loss (FVTPL).
Notwithstanding the above, the Company may make the following irrevocable elections upon initial recog-
nition of a financial asset:
The Company could irrevocably elect to present subsequent changes in fair value in other compre-
hensive income for investments in equity instruments that would otherwise be measured at fair
value through profit or loss.
The Company may irrevocably designate a financial asset that meets the criteria for amortized cost
or fair value through other comprehensive income to be measured at fair value through profit or
loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency.
20
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.11.- Financial instruments, continued.
Derecognitions of financial assets accounts
The Company derecognizes a financial asset only when the contractual rights to the cash flows of the finan-
cial asset expire, or when it transfers the financial asset and substantially all the risks and rewards inherent
in ownership of the asset to a third party.
If the Company does not transfer or retain substantially all of the risks and benefits of ownership and con-
tinues to control the transferred asset, the Company recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all of the risks and
rewards incidental to ownership of a transferred financial asset, the Company continues to recognize the
financial asset and also recognizes a secured loan for the amounts received.
Financial liabilities and equity instruments
Classification as debt or equity
The debt and equity instruments are classified whether as financial liabilities or as equity, according to the
substance of the contractual agreement.
(i) Equity instruments - An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company
are recognized for the amounts received, net of direct issuance costs. The repurchase of the Com-
pany's own equity instruments is recognized and deducted directly from equity. No gain or loss is
recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company's own
equity instruments.
(ii) Financial liabilities- All financial liabilities are subsequently measured at amortized cost using the
effective interest method or at FVTPL.
a. Financial liabilities at fair value through profit or loss: Financial liabilities are classified at
fair value through profit or loss when they are held for trading or are designated at fair value
through profit or loss.
21
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.11.- Financial instruments, continued.
b. Financial liabilities subsequently measured at amortized cost: financial liabilities that are
not contingent consideration from an acquirer in a business combination held for trading,
or designated at FVTPL are subsequently measured at amortized cost using the effective
interest method. The effective interest method is a method used to calculate the amortized
cost of a financial liability and to allocate interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and interest basis points, paid or received, comprising the effective in-
terest rate, transaction costs and any other premium or discount ) over the expected life
of the financial liability, or where appropriate, a shorter period, to the amortized cost of a
financial liability.
Derecognition of financial liabilities
The Company derecognizes financial liabilities if, and only if, the Company's obligations are discharged,
canceled or have expired. The difference between the carrying amount of the derecognized financial liability
and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed,
is recognized in profit or loss.
3.12.- Trade and other payables.
This item records balances payable to suppliers and other accounts payable; these are recognized at their
nominal value since their average payment term is short and there is no material difference with their fair
value.
3.13.- Employee benefits, current and non-current.
The Group records employee benefits on an accrual basis. These are settled within a period that does not
exceed twelve months.
3.14.- Earnings per share.
The basic net profit per share is calculated by taking the profit or loss for the period, attributable to the or-
dinary shareholders of the Parent Company (the “numerator”), and the weighted average of the number of
ordinary shares outstanding during the period (the “denominator”).
The Company has not carried out any type of transaction with a potential dilutive effect that would imply a
diluted earnings per share different from the basic earnings per share.
22
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.15.- Distribution of dividends.
Dividends payable to the shareholders of Drillco Tools S.A are recognized as a liability in the consolidated
financial statements for the period in which they are declared and approved by the Company’s sharehold-
ers, or when the respective obligation exists in light of legal regulations in force or the distribution policies
stipulated at the Shareholders’ Meeting. By unanimous vote of the shareholders, it was determined to dis-
tribute less than 30% of the distributable net profit for Periods 2023 and 2024.
3.16-. Leases.
The Company evaluates whether a contract is or contains a lease, at the beginning of the contract. The
Company evaluates whether a contract is or contains a lease, at the beginning of the contract. The Com-
pany recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements
in which is the lessee, except for short-term leases (defined as a lease with a 12-month lease term or less)
and low-value asset leases (such as tablets and personal computers, small items of furniture and supplies,
and telephones). For these leases, the Company recognizes the lease payments as an operating cost over
the straight-line method during the term of the lease unless another systematic basis is more representative
of the time pattern in which the economic benefits of the leased asset are consumed.
The lease liability is initially measured at the present value of future lease payments not paid at the com-
mencement date and discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, the Company uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability:
Fixed payments (including substantially fixed payments), less any lease incentives;
Variable lease payments, which depend on an index or rate, initially measured using the index or rate on
the commencement date;
Amounts expected to be payable under a residual value guarantee; and;
The exercise price of a purchase option if the lessee is reasonably sure to exercise that option; and
Penalty payments for terminating the lease, if the lease term reflects that the lessee will exercise an option
to terminate the lease.
The lease liability is presented under other financial liabilities in the consolidated statements of financial
position.
The lease liability is subsequently measured, increasing the carrying amount to reflect the interest on the
leasing liability (using the effective rate method) and reducing the carrying amount to reflect the lease pay-
ments made.
23
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.16.- Leases, continued.
The Company remeasures the lease liability (and makes the corresponding adjustments to the respective
right-of-use asset) when:
The lease term has changed or there is a significant event or change in circumstances that results in a
change in the assessment of exercising a purchase option, in which case the lease liability is remeasured
by discounting the revised lease payments using a revised discount rate.
Lease payments change due to changes in an index or rate or a change in the expected payment under a
residual value guarantee, in which case the lease liability is remeasured by discounting the revised lease
payments using the initial discount rate (unless the change in lease payments is due to a change in a varia-
ble interest rate, in which case a revised discount rate is used).
A lease contract is modified and that modification is not accounted for as a separate lease, in which case
the lease liability is remeasured based on the lease term of the modified lease by discounting the revised
lease payments using a revised discount rate at the effective date of the modification.
The Company did not make any such changes during all the periods presented.
Right-of-use assets comprise the amount of the initial amount of the lease liability, any lease payments
made before or at the commencement date, less lease incentives received and any initial direct costs in-
curred. The right-of-use assets are subsequently measured at cost less accumulated depreciation and ac-
cumulated impairment losses.
When the Company incurs a cost obligation to dismantle or remove a leased asset, restore the place where
it is located or restore the underlying asset to the condition required by the terms and conditions of the
lease, a provision is recognized and measured accordingly with IAS 37. To the extent that costs relate to a
right-of-use asset, the costs are included in the corresponding right-of-use asset, unless those costs are
incurred to produce inventories.
The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying
asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that
the Company expects to exercise a purchase option, the right-of-use asset is depreciated over the useful
life of the underlying asset. The depreciation starts at the starting date of the lease.
The right of use assets are represented within the heading properties, plant and equipment. .
The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any
impairment loss identified as described in the accounting policy for Impairment of non-financial assets.
Variable lease payments that do not depend on an index or rate are not included in the measurement of
lease liabilities and right-of-use assets. Variable payments are recognized as an expense in the period in
which the event or condition giving rise to such payments occurs and are included in administrative ex-
penses in the statements of income.
24
Drillco Tools S.A. and Subsidiaries
Note 3.- Summary of significant accounting policies, continued.
3.17.- Revenue recognition
Revenue from ordinary activities includes the fair value of consideration received or receivable for the sale
of goods and services in the ordinary course of business of the Group companies. Revenue from ordinary
activities is presented net of sales tax, returns, rebates and discounts (if any) and after eliminating intra-
group sales.
Drillco Tools S.A. and Subsidiaries recognizes revenue when control of the goods or services is transferred
to the customer in an amount that reflects the consideration to which the Group Companies expect to be
entitled in exchange for those goods or services.
The group analyzes and takes into account all the relevant facts and circumstances when applying each
step of the model established by IFRS 15 to contracts with its clients:
a) Identification of the contract,
b) Identification of the performance obligations
c) Determination of the transaction price,
d) Allocation of the price, and
e) Revenue recognition.
Sales of goods:
Revenue from sales of goods is recognized when a group company has transferred the risks and benefits of
the proceeds of those goods to the buyer and does not retain the right to dispose of them, nor to maintain
effective control; generally, this means that sales are recorded upon transfer of risks and rewards to cus-
tomers in accordance with the terms agreed in the commercial agreements.
3.18.- Provisions.
The present legal or constructive obligation existing at the date of the consolidated financial statements,
arising as a result of past events that may result in an outflow of economic benefits to settle the obligation,
the amount and timing of which are uncertain, are recorded in the consolidated statement of financial po-
sition as provisions for the present value of the most probable amount that the Company estimates it will
have to disburse to settle the obligation.
Provisions are calculated considering the best available information at the issuance date of the consoli-
dated financial statements, on the consequences of the event in which it arises and are reestimated at each
subsequent accounting close.
25
Drillco Tools S.A. and Subsidiaries
Note 4.- Financial Risk Management
The Group's financial risk management is aimed at safeguarding the stability and sustainability of Drillco, in
relation to the components of financial uncertainty that exist in the development of its operations.
The Group is subject to certain financial risk factors that may affect its results or financial condition, includ-
ing credit and liquidity risks, among others.
These risks are managed in accordance with internal policies and controls and are regularly monitored and
controlled by the Group's management and Board of Directors.
4.1.- Credit Risk
Credit risk refers to the probability that losses will be generated by payment defaults by customers, gener-
ated by changes in the financial situation of customers, economic contraction, social and political contin-
gencies, governmental restrictions, etc.
The Group regularly monitors accounts receivable, assigns credit lines and payment terms based on the
customer's characteristics, such as its legal structure, size, historical payment behavior, contracts and/or
commercial agreements entered into, among others.
Since the main customers are large companies, mining corporations with international presence and min-
ing contractors with low probability of uncollectibility, the Company does not have credit insurance.
To estimate the credit risk, the Group, classify accounts receivable according to their age, estimating an
allowance for impairment losses from 10% to 100% for accounts receivable with an age of more than one
year and over, see note 3.3.
The following table summarizes the accounts receivable according to their age and the estimated allow-
ance for each tranche.
08.31.2024 12.31.2023
Account Net from Account Net from
Allowance Allowance
Delinquency tranche receivable Allowance receivable Allowance
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Up to 1 year 7,784 (7) 7,777 7,563 - 7,563
Greater than 1 and less than 2 324 (33) 291 336 (101) 235
Greater than 2 and less than 3 328 (172) 156 169 (68) 101
Greater than 3 months 148 (148) - 77 (77) -
Total 8,584 (360) 8,224 8,145 (246) 7,899
26
Drillco Tools S.A. and Subsidiaries
4.- Financial risk management, continued
4.2.- Liquidity risk
Liquidity risk is related to the needs of funds to meet payment obligations.
To manage flow needs and minimize liquidity risks, annually the Group makes an estimate of the cash flows
necessary to cover working capital requirements, acquisition of assets and payments of financial liabilities,
in accordance with its annual budget. monthly projections and periodic control of cash flows.
The Group periodically receives income from flows from its sales and service operations and has lines of
credit with banking institutions and suppliers.
Bank liabilities as of August 31, 2024 amount to ThUS$15,363, with the following maturity.
Current Non-current
More than 90
More than 1 to Total, non-cur-
Financial liabilities Up to 90 days days up to 1 Total current Total
3 years rent
As of August 31, 2024 year
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Short-term 6,569 3,588 10,157 - - 10,157
Long term 350 1,012 1,362 2,621 2,621 3,983
Lease 140 384 524 699 699 1,223
Total 7,059 4,984 12,043 3,320 3,320 15,363
4.3.- Exchange rate risk
Drillco's functional currency is the US dollar, sales and most of its operations are carried out in this currency,
however, it is still exposed to exchange rate variations in some expenses, mainly remunerations in Chilean
pesos, which They increase or decrease in accounting terms according to the variation in the exchange rate,
affecting the Company's results. Annually, remunerations in Chilean pesos amount to 4.7 million dollars.
The Group does not maintain hedging contracts.
27
Drillco Tools S.A. and Subsidiaries
Note 5 - Cash and cash equivalents.
Cash and cash equivalents as of August 31, 2024, and December 31, 2023 is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Cash on hand 14 16
Bank balances 1,041 669
Mutual funds (a) 30 647
Overnight Sweep Account (*) 232 -
Total cash and cash equivalents 1,317 1,332
(*) Correspond to balances on BCI Miami.
Cash and cash equivalents correspond to cash balances held in cash, bank checking accounts, time de-
posits and other financial investments with maturities of less than 90 days and low risk, as described in IAS
7.
a) The detail of mutual funds as of August 31, 2024, and December 31, 2023 is as follows:
08.31.2024 12.31.2023
Bank No. Of Shares value Total No. Of Shares value Total
Shares ThUS$ ThUS$ Shares ThUS$ ThUS$
Banco de Crédito e Inversiones - - - 725 891 646
Banco Security 99.94 0.3002 30 0.0013 888 1
Total 30 647
Note 6.- Other non-financial assets, current.
As of August 31, 2024, and December 31, 2023, the company includes within these items the following:
08.31.2024 12.31.2023
ThUS$ ThUS$
Current insurance 76 69
Other prepaid expenses 102 99
VAT to recover 699 753
Fiscal Credit VAT 94 204
Total current assets 971 1,126
28
Drillco Tools S.A. and Subsidiaries
Note 7.- Trade and other receivables.
a) The detail of this item is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Trade accounts receivable 7,925 7,625
Allowance for bad debts (360) (246)
Total net 7,565 7,379
Other accounts receivable 659 520
Allowance for bad debts - -
Total net 659 520
Summary
Total gross 8,584 8,145
Allowance for bad debts (360) (246)
Total net 8,224 7,899
b) The changes in bad debt impairment are as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Balance at the beginning (246) (136)
Provision for the period (114) (110)
Total (360) (246)
The Group does not have credit insurance contracted, nor are there guarantees on accounts receivable.
Trade accounts receivable of the business are recognized at collection value, which is the sales or invoice
value that does not differ from their fair value, subsequently at cost less provision for impairment losses.
Note 8.-Balances and transactions with related parties.
The operations between the Companies and their dependent Subsidiaries are part of the Company's usual
transactions in terms of their objective and conditions and have been eliminated in the consolidation pro-
cess.
Transactions with related parties are carried out under terms and conditions similar to those offered to third
parties and the product of such operations is reflected in the accounts receivable and payable to related
parties.
29
Drillco Tools S.A. and Subsidiaries
Note 8.-Balances and transactions with related parties, continued.
8.1.- Accounts receivable from related entities.
The detail of this item as of August 31, 2024, and December 31, 2023 is as follows:
Current Non- current
Company Relationship Country 08.31.2024 12.31.2023 08.31.2024 12.31.2023
ThUS$ ThUS$ ThUS$ ThUS$
Drillco Tools Do Brasil Limitada Associate Brazil 132 780 - -
Drillco Perforaciones S.A. Common parent Chile - - 691 714
Inversiones Gardut Limitada Parent Company Chile - - 25 26
Holding Empresas Drillco S.A. Parent Company Chile - - 930 970
Total 132 780 1,646 1,710
8.2.-Transactions between related entities.
The main transactions are as follows:
08.31.2024 12.31.2023
Company Relationship Country transaction ThUS$ ThUS$ ThUS$ ThUS$
Transaction Effect on Transaction Effect on
amount profit amount profit
Inversiones Granito Ltda. Common shareholder Chile Remittances sent - - 115 -
Drillco Perforaciones S.A. Common shareholder Chile Remittances sent 6 - 6 -
Drillco Tools Do Brasil Ltda Associate Brazil Product sales 2,141 676 5,176 1,649
Inversiones Granito Ltda. Common shareholder Chile Services received 23 23 37 37
Inversiones Tinajero Ltda. Common shareholder Chile Services received 23 23 37 37
Inversiones Magerit Ltda. Common shareholder Chile Services received 26 26 37 37
8.3.-Board of Directors.
As of August 31, 2024 and December 31, 2023, ThUS$41 and ThUS$66 have been paid as Board of Direc-
tors fees, respectively.
30
Drillco Tools S.A. and Subsidiaries
Note 9- Inventories.
a) The detail of this item is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Finished products 16,635 18,031
Products in process 542 710
Raw materials and supplies 4,155 4,971
Total 21,332 23,712
Obsolescence provision (2,185) (2,625)
Total 19,147 21,087
b) The changes in the allowance for inventory impairment are as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Opening balance 2,625 2,447
Increase provision 23 178
(Decrease provision) (463) -
Total 2,185 2,625
Management estimates the obsolescence provision of inventories when they technically have no possibility
of being used in the production process, have no market for sale or have no purchase, sale or use transac-
tions for more than 48 months.
31
Drillco Tools S.A. and Subsidiaries
Note 10.-Current Tax Assets and Liabilities
The details of current tax assets and liabilities as of August 31, 2024 and December 31, 2023 are as fol-
lows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Assets
Estimated monthly payments of income tax 154 271
Credit for training expenses 18 35
Research and Development Tax Benefit 1,301 1,097
Tax to be recovered from foreign companies 31 52
Total current tax assets 1,504 1,455
08.31.2024 12.31.2023
ThUS$ ThUS$
Liabilities
Income tax foreign companies 138 348
Total current tax liabilities 138 348
Note 11.- Investment accounted using equity method.
The detail of investment accounted using equity method is as follows:
Equity Associate Associate income Investment Accrued income (loss)
Associate Property % 08.31.2024 12.31.2023 08.31.2024 12.31.2023 08.31.2024 12.31.2023 08.31.2024 12.31.2023
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Drillco Tools Do Brasil Ltda. 50.00% 8,214 10,670 1,846 4,708 4,107 5,335 923 2,354
Total 8,214 10,670 1,846 4,708 4,107 5,335 923 2,354
32
Drillco Tools S.A. and Subsidiaries
Note 12.-Intangible assets other than goodwill
12.1.- Composition of intangible assets other than goodwill.
The detail of intangible assets is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Intangibles, net
Software y licenses 112 114
Invention patents 10 15
Total intangibles, net 122 129
Intangibles, gross
Software y licenses 267 214
Invention patents 36 25
Total intangibles, gross 303 239
Amortization of intangible
Software y licenses (155) (100)
Invention patents (26) (10)
Total accumulated amortization intangibles (181) (110)
12.2.- Movements of intangible assets other than Goodwill
Softwareand Invention pa- Intangibles,
Movement period 2024 licenses tents net
ThUS$ ThUS$ ThUS$
Starting balance as of January 1, 2024 114 15 129
Purchases 53 11 64
Amortization (55) (16) (71)
Total movements (2) (5) (7)
Ending balance as of December 31, 2024 112 10 122
Softwareand Invention pa- Intangibles,
Movement period 2023 licenses tents net
ThUS$ ThUS$ ThUS$
Starting balance as of January 1, 2023 132 29 162
Purchases 66 24 90
Amortization (84) (39) (123)
Total movements (18) (15) (33)
Ending balance as of December 31, 2023 114 15 129
33
Drillco Tools S.A. and Subsidiaries
Note 12.- Intangible assets other than goodwill, continued.
As of August 31, 2024, and December 31, 2023, there are no intangible assets with indefinite useful lives.
Note 13.- Goodwill
Goodwill corresponds to the positive difference between the price paid for the acquisition of Drillco Tools
Inc. and the fair value of the Company's identifiable assets and liabilities at the acquisition date.
Goodwill is not amortized and is subsequently valued at cost less impairment losses, if any. The value of
goodwill as of August 31, 2024, and December 31, 2023 amounts to ThUS$ 395. There is no impairment.
During the periods ended August 31, 2024, and December 31, 2023, there have been no movements in
goodwill.
34
Drillco Tools S.A. and Subsidiaries
Note 14.- Property, plant and equipment.
14.1.- Composition of the item.
The composition of properties, plant and equipment is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Property, plant and equipment, net
Land 4,972 4,859
Construction and installations 491 446
Machineries and equipment 552 588
Minor equipment, tools and others 236 236
Leasing assets 2,047 2,169
Right of use assets 199 284
Construction in progress 126 126
Total property, plant and equipment, net 8,623 8,708
Property, plant and equipment, gross
Land 4,972 4,859
Construction and installations 2,511 2,340
Machineries and equipment 4,070 4,034
Minor equipment, tools and others 2,995 2,925
Leasing assets 7,840 7,791
Right of use assets 424 426
Constructions and projects in progress 126 126
Total property, plant and equipment, gross 22,938 22,501
Accumulated depreciation of property, plant and equipment
Construction and installations (2,020) (1,894)
Machineries and equipment (3,518) (3,446)
Minor equipment, tools and others (2,759) (2,689)
Leasing assets (5,793) (5,622)
Right of use assets (225) (142)
Total accumulated depreciation of property, plant and equipment (14,315) (13,793)
35
Drillco Tools S.A. and Subsidiaries
Note 14.- Property, plant and equipment, continued.
14.2.- The movements in properties, plants and equipment is as follows:
Property,
Construc- Machinery Minor equip- Construc-
Leasing as- Right of use plant and
Movement period 2024 Land, net tion and fa- and Equip- ment, tools tion in pro-
set, net assets, net equipment,
cilities, net ment, net and others gress
net
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Balance as of January 1, 2024 4,859 446 588 236 2,169 284 125 8,708
Purchases - 171 36 86 123 - 1 417
Sales - - - - (3) - - (3)
Revaluations 113 - - - - - - 113
Depreciation expense - (118) (70) (67) (247) (93) - (595)
Other increases (decreases) - (7) (2) (19) 5 8 (1) (17)
Total movements 113 45 (36) - (122) (85) 1 (85)
Balance as of August 31, 2024 4,972 491 552 236 2,047 199 126 8,623
Minor equip- Property,
Construc- Machinery Construc-
ment, tools Leasing as- Right of use plant and
Movement period 2023 Land, net tion and fa- and Equip- tion in pro-
and others, set, net assets, net equipment,
cilities, net ment, net gress
net net
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Balance as of January 1, 2023 4,488 373 543 90 1,634 198 318 7,645
Purchases - 222 228 351 915 206 3 1,925
Sales - - - - (21) - - (21)
Revaluations 371 - - - - - - 371
Depreciation expense - (157) (343) (330) (88) (120) - (1,038)
Other increases (decreases) - 7 161 124 (271) (195) (174)
Total movements 371 73 46 146 535 87 (192) 1,063
Balance as of December 31, 2023 4,859 446 588 236 2,169 284 126 8,708
14.3.- Assets at fair value.
Subsequent to initial recognition, the Group values its land under the fair value model, for which it periodi-
cally conducts studies with independent experts to determine its fair value and makes the corresponding
adjustments when there is evidence of significant changes in the market values of these as established in
IAS 16.
The composition of the fair value surplus as of August 31, 2024, and December 31, 2023, is as follows:
Revaluation surplus 08.31.2024 12.31.2023
ThUS$ ThUS$
Land revaluation 4,576 4,462
Deferred taxes due to land revaluation (1,236) (1,205)
Revaluation effect on other reserves 3,340 3,257
36
Drillco Tools S.A. and Subsidiaries
Note 15.- Income tax and deferred taxes.
15.1.- Balance deferred taxes
The deferred tax balances as of August 31, 2024, and December 31, 2023 are as follows:
08.31.2024 12.31.2023
Assets Liabilities Assets Liabilities
ThUS$ ThUS$ ThUS$ ThUS$
Trade and other receivables, current 76 - 75 -
Non-current provisions for employee benefits 307 - 292 -
Trade accounts payable and other payables 51 - 123 -
Other financial liabilities, current 229 - 268 -
Tax loss - - 339 -
Inventories 1,265 - 1,032 -
Property, plant and equipment, net - 2,122 - 2,107
Intangible assets other than goodwill - 24 - 24
Subtotal asset/ liability 1,929 2,146 2,129 2,131
Asset (liability) for deferred tax, net - (217) - (2)
15.2.- Income tax (expenses) income
The income tax (expenses) income as of August 31, 2024, and December 31, 2023 are as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Current tax expense, net (136) (329)
Deferred (expense) income due to deferred taxes (218) 442
Income tax (expenses) income (354) 113
37
Drillco Tools S.A. and Subsidiaries
Note 16 - Other financial liabilities.
The balances as of August 31, 2024, and December 31, 2023 are as follows:
08.31.2024 12.31.2023
Interest-bearing bank loans ThUS$ ThUS$
Current 11,444 12,872
Non- current 2,784 3,213
Total 14,228 16,085
Finance leases
Current 599 640
Non- current 536 650
Total 1,135 1,290
Summary
Current 12,043 13,512
Non- current 3,320 3,863
Total 15,363 17,375
38
Drillco Tools S.A. and Subsidiaries
Note 16.- Other financial liabilities, continued.
Note 16.1.- Financial liabilities as of August 31, 2024.
Creditor entity Current maturity Non-Current maturity
Cur- Effec- More than 90 Total
Amortization Up to 90 days Total More than 1 up More than 3 up Total ThUS$
Entity Country rency tive rate days up to 1 Non current
ThUS$ Current ThUS$ to 3 ThUS$ to 6 ThUS$
year ThUS$ ThUS$
Banco de Crédito e Inversiones Chile USD Quarterly 4.79% 129 342 471 1,172 - 1,172 1,643
Banco de Crédito e Inversiones Chile Ch$ Monthly 4.92% 119 352 471 1,264 - 1,264 1,735
Banco Security Chile USD Monthly 8.05% 102 318 420 185 - 185 605
Banco Security Chile USD At maturity 7.74% 965 - 965 - - - 965
Banco de Crédito e Inversiones Chile USD At maturity 7.95% 1,033 - 1,033 - - - 1,033
Banco Scotiabank Chile USD At maturity 8.03% 1,029 - 1,029 - - - 1,029
Banco Itaú Chile USD At maturity 7.25% 513 - 513 - - - 513
Banco Itaú Chile USD At maturity 7.14% 839 - 839 - - - 839
Banco Scotiabank Chile USD At maturity 7.77% 1,015 - 1,015 - - - 1,015
Banco de Crédito e Inversiones Chile USD At maturity 7.18% 1,020 - 1,020 - 1,020
Banco Santander Chile USD At maturity 4.92% 155 - 155 - - - 155
Banco de Crédito e Inversiones Chile USD At maturity 7.19% - 568 568 - - - 568
Banco de Chile Chile USD At maturity 7.85% - 1,016 1,016 - - - 1,016
Banco Santander Chile USD At maturity 8.40% - 1,023 1,023 - - - 1,023
Banco Bice Chile USD At maturity 7.93% - 506 506 - - - 506
Banco Security Chile USD At maturity 7.75% - 475 475 - - - 475
Subtotal - continued on next page 6,919 4,600 11,519 2,621 - 2,621 14,140
39
Drillco Tools S.A. and Subsidiaries
Note 16.- Other financial liabilities, continued.
Note 16.1.- Financial liabilities as of August 31, 2024, continuation.
Creditor entity Current maturity Non-Current maturity
Cur- Effective More than 90 Total
Amortization Up to 90 days Total More than 1 up More than 3 up Total ThUS$
Entity Country rency rate days up to 1 Non current
ThUS$ Current ThUS$ to 3 ThUS$ to 6 ThUS$
year ThUS$ ThUS$
Sub Total - continued from previous page 6,919 4,600 11,519 2,621 - 2,621 14,140
Banco Security Chile UF (*) Monthly 2.80% 21 63 84 50 - 50 134
Banco Security Chile UF (*) Monthly 2.70% 6 - 6 - - - 6
Banco Chile Chile UF (*) Monthly 1.90% 4 1 5 - - - 5
Banco Security Chile UF (*) Monthly 2.50% 3 7 10 - - - 10
Banco Security Chile UF (*) Monthly 2.90% 3 9 12 - - - 12
BCI bank Chile UF (*) Monthly 4.90% 3 8 11 3 - 3 14
BCI bank Chile UF (*) Monthly 4.90% 10 32 42 18 - 18 60
BCI bank Chile UF (*) Monthly 4.70% 3 10 13 7 - 7 20
Banco Scotiabank Chile UF (*) Monthly 5.80% 38 120 158 367 - 367 525
Banco Security Chile UF (*) Monthly 6.40% 3 9 12 15 - 15 27
Banco Chile Chile UF (*) Monthly 6.70% 6 17 23 46 - 46 69
Banco Chile Chile UF (*) Monthly 7.00% 6 20 26 58 - 58 84
Banco Chile Chile Ch$ Monthly 9.70% 3 9 12 - - - 12
Finance Lease- Brujac SRL Sociedad Unipersonale Italy EUR Monthly 8.00% 4 9 13 10 - 10 23
Finance Lease- Lit Industrial Limited Partnership USA USD Monthly 8.00% 8 14 22 26 - 26 48
Finance Lease- Jeff & Roxann Baker USA USD Monthly 8.00% 3 5 8 - - - 8
Finance Lease- Megacentro Lurin S.A.C. Peru PEN Monthly 8.00% 16 51 67 99 - 99 166
Total 7,059 4,984 12,043 3,320 - 3,320 15,363
(*) Amount is express and agreed in "Unidades de Fomento" (UF), which is an inflation-indexed unit of account, calculated and published by the Cen-
tral Bank of Chile.
40
Drillco Tools S.A. and Subsidiaries
Note 16.- Other financial liabilities, continued.
Note 16.1.- Financial liabilities as of December 31, 2023.
Creditor entity Current maturity Non-Current maturity
Cur- Effec- More than 90 Total
amortization Up to 90 days Total More than 1 up More than 3 up Total
Entity Country rency tive rate days up to 1 Non current
ThUS$ Current ThUS$ to 3 ThUS$ to 6 ThUS$
year ThUS$ ThUS$
Banco de Crédito e Inversiones Chile USD Quarterly 4.79% 114 334 448 968 512 1,480 1,928
Banco de Crédito e Inversiones Chile Ch$ Monthly 4.92% 121 354 475 1,049 734 1,783 2,258
Banco Bice Chile USD At maturity 8.35% 1,018 - 1,018 - - - 1,018
Banco Security Chile USD At maturity 9.83% 514 - 514 - - - 514
Banco Security Chile USD At maturity 9.80% - 476 476 - - - 476
Banco Itaú Chile USD At maturity 8.12% - 129 129 - - - 129
Banco Security Chile USD At maturity 8.50% 198 - 198 - - - 198
Banco Santander Chile USD At maturity 9.22% - 501 501 - - - 501
Banco Security Chile USD At maturity 9.75% 492 - 492 - - - 492
Santander Chile USD At maturity 9.12% 1,022 - 1,022 - - - 1,022
Banco Itaú Chile USD At maturity 8.03% - 507 507 - - - 507
Banco Scotiabank Chile USD At maturity 8.52% - 1,036 1,036 - - - 1,036
Banco Scotiabank Chile USD At maturity 8.56% - 1,013 1,013 - - - 1,013
Banco Itaú Chile USD At maturity 7.98% - 829 829 - - - 829
Banco Santander Chile USD At maturity 9.38% - 1,010 1,010 - - - 1,010
Banco de Crédito e Inversiones Chile USD At maturity 8.63% - 535 535 - - - 535
Banco de Chile Chile USD At maturity 8.50% - 1,002 1,002 - - - 1,002
Banco Santander Chile USD At maturity 9.32% - 1,005 1,005 - - - 1,005
Banco Santander Chile USD At maturity 9.28% - 502 502 - - - 502
Banco Security Chile USD At maturity 9.37% - 140 140 - - - 140
Subtotal - continued on next page 3,479 9,373 12,852 2,017 1,246 3,263 16,115
41
Drillco Tools S.A. and Subsidiaries
Note 16.- Other financial liabilities, continued.
Note 16.1.- Financial liabilities as of December 31, 2023, continuation.
Creditor entity Current maturity Non-Current maturity
Cur- Effective More than 90 Total
Amortization Up to 90 days Total More than 1 up More than 3 up Total ThUS$
Entity Country rency rate days up to 1 Non current
ThUS$ Current ThUS$ to 3 ThUS$ to 6 ThUS$
year ThUS$ ThUS$
Sub Total - continued from previous page 3,479 9,373 12,852 2,017 1,246 3,263 16,115
Banco Security Chile UF (*) Monthly 2.80% 21 63 84 50 - 50 134
Banco Security Chile UF (*) Monthly 2.70% 6 6 - - - 6
Banco Chile Chile UF (*) Monthly 1.90% 4 1 6 - - - 6
Banco Security Chile UF (*) Monthly 2.50% 3 7 10 - - - 10
Banco Security Chile UF (*) Monthly 2.90% 3 9 12 - - - 12
BCI bank Chile UF (*) Monthly 4.90% 3 8 10 3 - 3 13
BCI bank Chile UF (*) Monthly 4.90% 10 32 42 18 - 18 61
BCI bank Chile UF (*) Monthly 4.70% 3 10 13 7 - 7 20
Banco Scotiabank Chile UF (*) Monthly 5.80% 38 117 154 368 - 368 522
Banco Security Chile UF (*) Monthly 6.40% 3 9 12 15 - 15 26
Banco Chile Chile UF (*) Monthly 6.70% 6 17 23 46 - 46 69
Banco Chile Chile UF (*) Monthly 7.00% 6 20 26 58 - 58 84
Banco Chile Chile Ch$ Monthly 9.70% 3 9 12 - - - 12
Finance Lease- Brujac SRL Sociedad Unipersonale Italy EUR Monthly 8.00% 4 9 13 10 - 10 23
Finance Lease- Lit Industrial Limited Partnership USA USD Monthly 8.00% 8 14 22 26 - 26 48
Finance Lease- Jeff & Roxann Baker USA USD Monthly 8.00% 3 5 8 - - - 8
Finance Lease- Megacentro Lurin S.A.C. Peru PEN Monthly 8.00% 52 154 206 - - - 206
Total 3,655 9,857 13,511 2,618 1,246 3,864 17,375
(*) Amount is express and agreed in "Unidades de Fomento" (UF), which is an inflation-indexed unit of account, calculated and published by the Cen-
tral Bank of Chile.
42
Drillco Tools S.A. and Subsidiaries
Note 17.-Trade and other payables.
As of August 31, 2024, and December 31, 2023 the details of this item are as follows:
08.31.2024 12.31.2023
Current ThUS$ ThUS$
Local suppliers 814 1,529
Foreign suppliers 10,557 10,753
Other accounts payables 1,572 1,082
Total 12,943 13,364
08.31.2024 12.31.2023
Non-current ThUS$ ThUS$
Foreign suppliers - 154
Total - 154
Nota 18.- Provisions for employee benefits
The Company records employee benefits such as salaries, bonuses and vacations on an accrual basis.
These obligations are paid over a period not exceeding twelve months; severance indemnities are payable
to employees under the contract with Codelco Andina division.
As of August 31, 2024 and December 31, 2023, the provisions for employee benefits are the following:
08.31.2024 12.31.2023
ThUS$ ThUS$
Current
Gratification 25 11
Vacation provision 423 504
Severance indemnity 347 348
Bonds 411 669
Total, current 1,207 1,532
Non- current
Severance indemnity 40 37
Total, non-current 40 37
43
Drillco Tools S.A. and Subsidiaries
Note 19.- Equity.
19.1.- Other reserves
The composition of the other reserves is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Capital revaluation period 2012 (1) (60) (60)
Conversion reserves (2) 356 1,196
Revaluation surplus (19.2) 1,916 1,833
Total 2,212 2,969
(1) Corresponds to the price-level restatement of paid-in capital in the IFRS transition period, which in
accordance with Circular 456 issued by the Financial Market Commission, must be included in equity and
charged to other reserves.
(2) This balance reflects the accumulated results from exchange rate fluctuations when translating the fi-
nancial statements of companies whose functional currency is different from the Chilean peso, the presen-
tation currency of these Consolidated Financial Statements.
19.2 Revaluation surplus
The composition of the revaluation surplus is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Land revaluation 4,576 4,462
Deferred taxes due to land revaluation (1,236) (1,205)
Revaluation effect on other reserves 3,340 3,257
Dividend distribution for 2016 (1,424) (1,424)
Balance in other reserves 1,916 1,833
On September 12, 2016, the Shareholders' Meeting of Drillco Tools S.A. agreed to distribute the revalua-
tion surplus as dividends.
19.3.- Dividends
As of August 31, 2024, the Company distributed dividends of ThUS$ 508 (ThUS$ 669 as of December 31,
2023).
44
Drillco Tools S.A. and Subsidiaries
Note 19.- Equity, continued
19.4.- Non-controlling interests.
The detail of the non-controlling interests is as follows:
Equity
Subsidiary Property % 08.31.2024 12.31.2023
ThUS$ ThUS$
Drillco Tools Italia S.L.R. 5% (21) (20)
Total (21) (20)
Income
Subsidiary Property % 8/31/2024 12/31/2023
ThUS$ ThUS$
Drillco Tools Italia S.L.R. 5% - -
Total - -
Note 20.- Revenues.
The details of revenues as of August 31, 2024, and December 31, 2023 is as follows:
Accumulated
08.31.2024 12.31.2023
ThUS$ ThUS$
Product sales 24,780 40,026
Rendering of services 764 1,166
Total 25,544 41,192
Note 21.- Cost of sales.
The details of cost of sales as of August 31, 2024, and December 31, 2023 is as follows:
Accumulated
08.31.2024 12.31.2023
ThUS$ ThUS$
Cost of products (17,299) (28,217)
Cost of services (565) (983)
Total (17,864) (29,200)
45
Drillco Tools S.A. and Subsidiaries
Note 22.- Operating Expenses.
The details of operating expenses as of August 31, 2024, and December 31, 2023 is as follows:
Accumulated
08.31.2024 12.31.2023
ThUS$ ThUS$
Staff (396) (829)
Advisors (291) (473)
Depreciation (102) (120)
Others (248) (296)
Total (1,037) (1,718)
Note 23.- Selling Expenses.
The details of selling expenses as of August 31, 2024, and December 31, 2023 is as follows:
Accumulated
08.31.2024 12.31.2023
ThUS$ ThUS$
Staff (2,280) (3,007)
Advisors (277) (458)
Sales expenses (275) (580)
Others (1,911) (2,713)
Total (4,743) (6,758)
Note 24.- Research and Development Expenses.
The details of research and development as of August 31, 2024, and December 31, 2023 is as follows:
Accumulated
08.31.2024 12.31.2023
ThUS$ ThUS$
Staff (536) (824)
Technical advisories (280) (387)
Others (77) (182)
Total (893) (1,393)
46
Drillco Tools S.A. and Subsidiaries
Note 25.- Financial Statements of the Companies included in the consolidation.
As of August 31, 2024, the Statement of Financial Position and Statement of Income by Function of the companies included in the consolidation are as
follows:
Drillco Tools Drillco Tools Drillco Tools Drillco Tools Drillco Asia Co. Drillco Tools Af- Drillco Aus- Drillco Europe
S.A. INC. Europe S.R.L. Perú S.A.C. Ltda. rica (PTY) LTD tralia PTY LTD.
Statements of Income per Function
08.31.2024 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Revenues 15,576 3,773 540 8,758 1,487 - - 1,263
Cost of sales (11,216) (2,790) (429) (6,641) (1,367) - - (1,274)
Gross profit 4,360 983 111 2,117 120 - - (11)
Administrative expenses (1,036) - 2 - - - - -
Sales expenses (2,228) (879) (107) (1,385) (141) (4) - -
Research and development expenses (885) - - - - - - (8)
Impairment of inventories - - (23) - - - - -
Impairment of accounts receivable (11) (7) 10 (15) - - - (91)
Other income (losses) 61 (38) - 11 - - - -
Profit (loss) from operating activities 262 59 (7) 728 (21) (4) - (110)
Financial income 12 - - - - - - -
Financial cost (870) (4) (2) (47) - - - -
Profit (loss) of associates 1,185 - - - - - - -
Foreign currency translation differences 67 - - (223) 12 - - 17
Indexation units (34) - - - - - - -
Profit (loss) before tax 622 55 (9) 458 (9) (4) - (93)
Income tax expenses (220) (1) - (133) - - - -
Profit (loss) from continuing operations 402 54 (9) 325 (9) (4) - (93)
Profit (loss) 402 54 (9) 325 (9) (4) - (93)
47
Drillco Tools S.A. and Subsidiaries
Note 25.- Financial Statements of the Companies included in the consolidation, continued.
Drillco Tools
Drillco Tools Drillco Tools Drillco Tools Drillco Asia Co. Drillco Aus- Drillco Europe
Drillco Tools INC. Africa (PTY)
S.A. Europe S.R.L. Perú S.A.C. Ltda. tralia PTY LTD.
Classified Statement of Financial Position LTD
08.31.2024 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Assets
Current assets
Cash and cash equivalent 634 281 95 116 97 36 18 40
Other non-financial assets 178 - 64 715 6 1 (1) 8
Trade debtors and other accounts receivable 2,162 784 271 3,417 0 48 - 1,542
Accounts receivable from related entities 7,103 10 69 87 1,084 - - 632
Inventories 9,251 3,993 678 4,846 53 3 - 195
Current tax assets 1,473 31 - - - - - -
Total current assets 20,801 5,099 1,177 9,181 1,240 88 17 2,417
Non-Current Assets
Accounts receivable from related entities 2,670 - - - - - - -
Inventories Inv. Cont. using equity method 7,624 - - - - - - -
Intangible assets other than goodwill 89 13 - 20 - - - -
Goodwill 395 - - - - - - -
Property, plant and equipment 8,203 29 22 283 37 - - 49
Deferred tax assets 1,535 99 77 183 - - - 36
Total non-current assets 20,516 141 99 486 37 - - 85
TOTAL ASSETS 41,317 5,240 1,275 9,667 1,277 88 17 2,502
48
Drillco Tools S.A. and Subsidiaries
Note 25.- Financial Statements of the Companies included in the consolidation, continued.
Drillco Tools
Drillco Tools Drillco Tools Drillco Tools Drillco Asia Co. Drillco Aus- Drillco Europe
Drillco Tools INC. Africa (PTY)
S.A. Europe S.R.L. Perú S.A.C. Ltda. tralia PTY LTD.
Classified Statement of Financial Position LTD
08.31.2024 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Assets and liabilities
Liabilities
Current liabilities:
Other financial liabilities, current 11,934 30 18 67 - - - -
Trade other payables 5,409 49 50 6,547 556 - 29 299
Accounts payable to related companies, current 1,215 2,689 1,210 300 - 1,041 447 1,817
Current tax liabilities (0) - - 138 - - - -
Current provisions for employee benefits 1,139 - - 68 - - - -
Total current liabilities: 19,697 2,768 1,278 7,120 556 1,041 476 2,116
Non-current liabilities
Other financial liabilities, non-current 3,221 - - 99 - - - -
Deferred tax liabilities 2,099 - - 47 - - - -
Non-current provisions for employee benefits - - 40 - - - - -
Total non-current liabilities 5,320 - 411 146 - 653 - -
Total liabilities 25,016 2,768 1,689 7,266 556 1,694 476 2,116
Equity
Issued capital 11,705 1,644 11 72 37 - - 2,624
Profit (loss) 2,384 828 (425) 2,315 684 (1,606) (459) (2,238)
Other reserves 2,212 - - 14 - - - -
Total equity 16,301 2,472 (414) 2,401 721 (1,606) (459) 386
Total equity and liabilities 41,317 5,240 1,275 9,667 1,277 88 17 2,502
49
Drillco Tools S.A. and Subsidiaries
Note 25.- Financial Statements of the Companies included in the consolidation, continued.
As of December 31, 2023, the Statement of Financial Position and Statement of Income by Function of the companies included in the consolidation
are as follows:
Drillco Tools
Drillco Tools Drillco Tools Drillco Tools Drillco Asia Drillco Aus- Drillco Europe
Drillco Tools INC. Africa (PTY)
S.A. Europe S.R.L. Perú S.A.C. Co. Ltda. tralia PTY LTD.
Statements of Income per Function LTD
12.31.2023 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Revenues 27,238 5,629 692 13,291 2,744 30 - 1,678
Cost of sales (20,178) (4,204) (504) (10,276) (2,589) (26) - (1,533)
Gross profit 7,060 1,425 188 3,016 156 4 - 145
Other revenues by function - - - - - - - -
Administrative expenses (1,719) - - - - (7) - -
Sales expenses (3,190) (1,453) (176) (1,767) (165) - - -
Research and development expenses (1,398) - - - - - - 5
Impairment of inventories (141) (34) - (2) - - - -
Impairment of accounts receivable 6 (3) (12) (9) - - - (92)
Other expenses by function - - - - - - - -
Other income (losses) 25 23 - - 7 - - -
Profit (loss) from operating activities 645 (43) - 1,237 (2) (3) - 58
Financial income 3 - - - 0 - - -
Financial cost (1,474) (7) (5) (38) - - - -
Profit (loss) of associates. 3,076 - - - - - - -
Foreign currency translation differences (123) - (0) (123) (23) - - (26)
Indexation units 7 - - - - - - -
Profit (loss) before tax 2,135 (50) (5) 1,076 (25) (3) - 31
Income tax expenses 415 5 0 (329) - - - 22
Profit (loss) from continuing operations 2,549 (45) (5) 748 (25) (3) - 54
Profit (loss) 2,549 (45) (5) 748 (25) (3) - 54
50
Drillco Tools S.A. and Subsidiaries
Note 25.- Financial Statements of the Companies included in the consolidation, continued.
Drillco Tools
Drillco Tools Drillco Tools Drillco Tools Drillco Tools Drillco Asia Co. Drillco Aus- Drillco Europe
Africa (PTY)
S.A. INC. Europe S.R.L. Perú S.A.C. Ltda. tralia PTY LTD.
Classified Statement of Financial Position LTD
12.31.2023 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Assets
Current assets
Cash and cash equivalent 924 54 68 69 61 44 19 93
Other non-financial assets 275 - 70 760 13 (3) - 11
Trade debtors and other accounts receivable 2,524 931 197 3,086 - 46 - 1,115
Accounts receivable from related entities 7,552 7 42 932 1,038 - - 623
Inventories 11,194 4,586 391 4,521 55 3 - 167
Current tax assets 1,401 32 - - 23 - - -
Total current assets 23,870 5,610 767 9,370 1,191 89 19 2,007
Non-Current Assets
Accounts receivable from related entities 2,737 - - - - - - -
Inventories Inv. Cont. using equity method 9,570 - - - - - - -
Intangible assets other than goodwill 89 13 - 27 - - - -
Goodwill 395 - - - - - - -
Property, plant, and equipment 8,208 62 31 308 50 - - 48
Deferred tax assets 1,725 103 71 200 - - - 34
Total non-current assets 22,724 178 102 535 50 - - 82
TOTAL ASSETS 46,595 5,788 870 9,905 1,241 89 19 2,089
51
Drillco Tools S.A. and Subsidiaries
Note 25.- Financial Statements of the Companies included in the consolidation, continued.
Drillco Tools
Drillco Tools Drillco Tools Drillco Tools Drillco Tools Drillco Asia Co. Drillco Aus- Drillco Europe
Africa (PTY)
S.A. INC. Europe S.R.L. Perú S.A.C. Ltda. tralia PTY LTD.
Classified Statement of Financial Position LTD
12/31/2023 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Assets and liabilities
Liabilities
Current liabilities:
Other financial liabilities, current 13,244 45 18 206 - - - -
Trade other payables 6,818 44 9 5,695 484 - 19 340
Accounts payable to related companies, current 2,048 3,108 827 506 - 999 461 1,285
Current tax liabilities - - - 348 - - - -
Current provisions for employee benefits 1,487 - - 45 - - - -
Other non-financial liabilities, current - - - - - - - -
Total current liabilities: 23,597 3,196 854 6,799 484 999 480 1,625
Non-current liabilities
Other financial liabilities, non-current 3,839 15 10 - - - - -
Accounts payable, non current - 154 - - - - - -
Accounts payable to related entities, non-current - - 371 - - 653 - -
Deferred tax liabilities 1,994 - - 137 - - - -
Provision for employee benefits - - 37 - - - - -
Total non-current liabilities 5,833 169 418 137 - 653 - -
Total liabilities 29,430 3,365 1,272 6,936 484 1,652 480 1,625
Equity
Issued capital 11,705 1,644 11 73 39 0 0 2,550
Profit (loss) 2,490 778 (413) 2,881 718 (1,563) (462) (2,086)
Other reserves 2,969 - - 15 - - - -
Total equity 17,164 2,423 (402) 2,969 757 (1,563) (462) 464
Total equity and liabilities 46,594 5,788 870 9,905 1,241 89 19 2,089
52
Drillco Tools S.A. and Subsidiaries
Note 26.- Foreign currency translation differences.
The detail of this item as of August 31, 2024, and December 31, 2023 is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Financial liabilities and creditors in foreign currency (242) (123)
Trade and other assets 115 (172)
Total (127) (295)
Note 27.- Indexation units.
The detail of this item as of August 31, 2024, and December 31, 2023 is as follows:
08.31.2024 12.31.2023
ThUS$ ThUS$
Financial liabilities in UF (34) 7
Total (34) 7
Note 28.- Provisions, contingent assets and liabilities
28.1.- Restrictions, direct and indirect guarantees
To guarantee a timely repayment of the debt to Banco de Crédito e Inversiones, a general mortgage for UF
94,579.45 has been constituted on the industrial property located at Américo Vespucio Norte No. 1,387,
Quilicura; and a lien for UF 2,606 has been constituted on machinery.
28.2.- Commitments.
The financial loan that Drillco Tools S.A. took from Banco de Crédito e Inversiones does not contemplate
compliance with covenants.
28.3.- Contingencies.
As of August 31, 2024, the Company has no significant litigation or probable litigation that will lead or could
lead to a loss for Drillco Tools S.A. and subsidiaries; tax matters that could eventually represent a real or
contingent obligation; nor liens of any nature that affect or could affect the assets owned by the Company.
53
Drillco Tools S.A. and Subsidiaries
Note 29-. Sanctions
For the period ended August 31, 2024, the regulatory agencies imposed no significant sanctions on Drillco
Tools S.A. and Subsidiaries, nor on its executives and directors.
Note 30.- Subsequent events.
During the Extraordinary Shareholders' Meeting held on November 21, 2024, the Company approved the
distribution of ThUS$ 1,646 (ThCh$ 1,504,588), by debiting retained earnings. This dividend will be distrib-
uted among the shareholders in proportion to their shareholding. This payment will be made by assigning
the Company’s accounts receivable that must be paid by the following debtors.
Drillco Perforaciones S.A., ThUS$ 691 (ThCh$ 631,385)
Inversiones Gardut Limitada, ThUS$ 25 (ThCh$ 22,748)
Holding Empresas Drillco S.A., ThUS$ 930 (ThCh$ 850,455)
Between September 1 and the date of issuance of these consolidated financial statements, there are no
other subsequent events of a financial or other nature that could significantly affect their content or the
presentation of the accompanying financial statements.
54
CONTACT US
info@drillco.com
