China Ceramics Co., Ltd | CIK:0001470683 | 3

  • Filed: 5/4/2018
  • Entity registrant name: China Ceramics Co., Ltd (CIK: 0001470683)
  • Generator: DataTracks
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1470683/000114420418025395/0001144204-18-025395-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1470683/000114420418025395/cccl-20171231.xml
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    • ifrs-full:DisclosureOfBusinessCombinationsExplanatory

    27.
    BUSINESS COMBINATIONS
     
    On January 8, 2010, the Company consummated the acquisition of all voting equity interests of Hengdali, a company that manufactures and sells ceramics tiles used for exterior siding and for interior flooring, for a total cash consideration of RMB185,517,000. The acquisition is intended to increase the Company’s production capacity and reduce costs through economies of scale.
     
    Details of the purchase consideration, the net assets acquired and goodwill are as follows:
     
     
     
    Fair value
     
     
     
    RMB’000
     
    Cash and cash equivalents
     
     
    3,822
     
    Property, plant and equipment
     
     
    206,532
     
    Land use rights
     
     
    32,439
     
    Inventories
     
     
    11,473
     
    Receivables
     
     
    400
     
    Payables
     
     
    (11,728)
     
    Borrowings
     
     
    (60,000)
     
    Deferred tax liability
     
     
    (1,156)
     
    Total identified assets
     
     
    181,782
     
    Goodwill
     
     
    3,735
     
    Purchase consideration, satisfied in cash
     
     
    185,517
     
     
    The goodwill is attributable to Hengdali’s strong production capacity, foreseeable profitability and synergies expected to arise from the economies of scale after the acquisition. None of the goodwill is expected to be deductible for tax purposes.