Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 72

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 72
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 has a broad client base of more
than 272 thousand clients, implying a high level of atomization of accounts receivable, which are subject to policies, procedures and
controls established by the Company. In accordance with such policies, credits must be based objectively, non-discretionary and uniformly
granted to all clients of the same segment and channel, provided these will allow generating economic benefits to the Company. The credit
limit is checked periodically considering payment behavior. Trade accounts receivable pending of payment are monitored on a monthly basis,

| i. | Sale Interruption |

In accordance with Corporate Credit
Policy, the interruption of sale must be within the following framework: when a customer has outstanding debts for an amount greater than
USD 250,000, and over 60 days expired, sale is suspended. The General Manager in conjunction with the Finance and Administration Manager
authorize exceptions to this rule, and if the outstanding debt should exceed USD 1,000,000, and in order to continue operating with that
client, the authorization of the Chief Financial Officer is required. Notwithstanding the foregoing, each operation can define an amount
lower than USD 250,000 according to the country’s reality.

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| ii. | Impairment |

The impairment recognition policy establishes
the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue, 60% between 60 and 91 days, 90% between 91 and 120
days overdue and 100% for more than 120 days. Exemption of the calculation of global impairment is given to credits whose delays in the
payment correspond to accounts disputed with the customer whose nature is known and where all necessary documentation for collection is
available, therefore, there is no uncertainty on recovering them. However, these accounts also have an impairment provision as follows:
40% for 91 to 120 days overdue, 80% between 120 and 170, and 100% for more than 170 days.

| iii. | Prepayment to suppliers |

The Policy establishes that USD 25,000
prepayments can only be granted to suppliers if its value is properly and fully provisioned. The Treasurer of each subsidiary must approve
supplier warranties that the Company receives for prepayments before signing the respective service contract, In the case of domestic
suppliers, a warranty ballot (or the instrument existing in the country) shall be required, in favor of Andina executable in the respective