NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
110
CITIC ENVIROTECH LTD.
Annual Report
2015
17 INTANGIBLE ASSETS (cont’d)
Customer
contracts
Patents
Operating
concessions
Club
memberships
Total
$’000
$’000
$’000
$’000
$’000
Carrying amount
At December 31, 2015
4,119
2,651 215,312
200 222,282
At March 31, 2015
5,042
3,278 181,661
200 190,181
Customer contracts
Customer contracts represent the manufacture and supply agreement with customer for membrane
products acquired from a business combination. Customer contracts are amortised on a straight-line
basis over the period of 9 years.
Patents
Patents represent the in-house R&D capabilities and technical expertise in membrane which relate to
the PDVF hollow fibre membrane. Patents are amortised on a straight-line basis over the period of 5
years.
Operating concessions
Operating concessions represent the rights to charge users of the public service for the water
purification contracts. Such operating concession rights fall within the scope of INT FRS 112
Service Concession Arrangements. The operating concessions are stated at cost less accumulated
amortisation and any accumulated impairment losses. Amortisation is provided on straight-line basis
over the respective periods of the operating concessions granted to the Group for periods ranging
from 20 to 30 years (March 31, 2015: 20 to 30 years).
The significant aspects of the operating concession arrangements are as follows:
(a)
The Group has a total of 12 (March 31, 2015 : 10) service concession arrangements as at the
end of the reporting period.
(b) Operating concessions amounting to $105,139,000 (March 31, 2015 : $109,278,000) are
pledged to secure the loans for the Group (Note 19).
Group
December
31,
March
31,
2015
2015
$’000
$’000
Amount to be amortised:
Not later than one year
8,906
5,215
Later than one year but not later than five years
41,895
22,428
Later than five years
171,481 154,018
Total
222,282 181,661
