| 19. | PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS |
Balances and transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.
The outstanding balances between the Group and the Parent company, other shareholders, associates and other related parties as of December 31, 2017 and 2016 are as follows:
| 12.31.2017 | 12.31.2016 | |||||||
|
Related companies |
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|
InterCement Brasil S.A. |
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|
Loans (Investment) |
— | 124,767,892 | ||||||
|
Other receivables |
— | 41,737,180 | ||||||
|
Accounts payable |
(2,722,388 | ) | (172,153,538 | ) | ||||
|
Camargo Correa S.A. |
||||||||
|
Other receivables |
— | 35,721,149 | ||||||
|
CCCimentos Participacoes LTDA |
||||||||
|
Other receivables |
— | 1,341,509 | ||||||
|
Other liabilities - Dividends payable |
— | — | ||||||
|
Cimpor Trading e Inversiones S.A. |
||||||||
|
Trade accounts receivables |
5,838,363 | 26,240,458 | ||||||
|
Accounts payable |
(194,808,865 | ) | (377,295,476 | ) | ||||
|
Cimpor Servicios de Apoio a Gestao S.A. |
||||||||
|
Trade accounts receivable |
13,868,021 | 4,770,992 | ||||||
|
Accounts payable |
(64,142,910 | ) | — | |||||
|
Cimpor - Cimentos de Portugal, SGPS, S.A. |
||||||||
|
Accounts payable |
— | (14,400,608 | ) | |||||
|
Sacopor S.A. |
||||||||
|
Accounts payable |
(14,154,182 | ) | — | |||||
|
Summary of balances as of December 31, 2017 and 2016 is as follows: |
|
Loans (investment) |
— | 124,767,892 | ||||||
|
Trade accounts receivable |
19,706,384 | 31,011,450 | ||||||
|
Other receivables |
— | 78,799,838 | ||||||
|
Accounts payable |
(275,828,345 | ) | (563,849,622 | ) | ||||
|
Other liabilities — Dividends payable |
— | — |
The transactions between the Group and parent companies, associates and related parties as of December 31, 2017, 2016 and 2015 are detailed as follows:
| Interest and Exchange rate differences | Sale/(Purchase) of Goods and Services | |||||||||||||||||||||||
| 12.31.2017 | 12.31.2016 | 12.31.2015 | 12.31.2017 | 12.31.2016 | 12.31.2015 | |||||||||||||||||||
|
Associates |
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|
Yguazú Cementos S.A. (a) |
— | 3,505,877 | 4,704,537 | — | 4,025,439 | 9,320,974 | ||||||||||||||||||
|
Other related parties |
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|
InterCement Brasil S.A. (b) y (c) |
1,234,479 | 103,468,732 | 149,368,918 | (19,121,394 | ) | (603,821,090 | ) | — | ||||||||||||||||
|
Cimpor Trading e Inversiones S.A. (a) |
(13,525,772 | ) | (2,196,283 | ) | — | (88,017,758 | ) | (189,671,576 | ) | (28,358,217 | ) | |||||||||||||
|
Cimpor Serv. de Apoio a Gestao S.A.(a) y (d) |
887,061 | — | — | (56,189,502 | ) | 4,770,992 | — | |||||||||||||||||
|
Sacopor S.A.(a) |
(254,420 | ) | — | — | (33,357,279 | ) | — | — | ||||||||||||||||
| (a) | Corresponds to the sale and purchase of goods and services and the difference in the exchange of balances in foreign currency if applicable. |
| (b) | Amounts under “Interest and Exchange rate differences” include: i) interest accrued on the loan granted to InterCement Brasil S.A. for u$s 26.8 million, which accrue an annual nominal rate of 3% maturing July 2017. On December 22, 2016, Loma Negra C.I.A.S.A. acquired 16.0017% of Yguazú Cementos S.A. from InterCement Brasil S.A. and settled an amount of 412,435,636 of the purchased price with the loan granted to said parent company. Interest accrued to that date were paid by InterCement Brasil S.A. pursuant to the agreement; ii) interest on another loan agreement for u$s 5 million, which accrue an annual nominal rate of 3.9% maturing in November 2016. On that date the parties agreed to compound the outstanding interest and set a new annual interest rate of 4.7%. On July 3, 2017 such amount was applied to paying off the outstanding liability related to the purchase of shares of stock in Yguazú Cementos S.A. as indicated above, and iii) financial results accrued in favor of InterCement Brasil S.A. by its guarantee on a loan of the Company until July 2016. |
| (c) | Includes 518,091,291 for the period ended in December 31, 2017 corresponding to the purchase of shares of Yguazú Cementos S.A. as described in note 16. |
| (d) | On July 21, 2017 Loma Negra C.I.A.S.A. accepted the offer letter received Cimpor Serv. de Apoio a Gestao S.A., for the transfer of technical know-how that includes access to procedures, rules, databases, systems, benchmarking programs, tools and best practices in relation to the production process, in order to obtain a better quality in the products. Loma Negra C.I.A.S.A. must pay a charge equivalent to 1% of the net sales of the Company for the services received. This agreement is valid for three years as of August 1, 2017 and it was registered with the National Institute of Intellectual Property (INPI). Services related to the agreement have been received since August 1, 2018. |
| Dividends approved | ||||||||
| 12.31.2017 | 12.31.2016 | |||||||
|
InterCement Brasil S.A. |
442,230,891 | 712,077,809 | ||||||
|
CCCimentos Participacoes Ltda. |
— | 80,497,006 | ||||||
|
Third parties |
2,469,109 | 4,425,185 | ||||||
|
|
|
|
|
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|
Total |
444,700,000 | 797,000,000 | ||||||
|
|
|
|
|
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The dividends approved by the Company were paid in the respective year.
The amount recognized in the statement of comprehensive income related to Key Management fees amounted to 76,872,494 and 56,245,833 for the years ended December 31, 2017 and 2016, respectively. The fees are short-term benefits
The Group did not recognized any expense in the current year or in prior years regarding bad or doubtful accounts related to amounts owed by related parties.