Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
ANNUAL REPORT 2015
88
BUILDING ON OUR EXTENSIVE NETWORK
34. Related party transactions
(a)
Sale and purchase of goods and services
In addition to those related party information disclosed elsewhere in the financial statements, the
following significant transactions between the Group and related parties took place during the year
at terms agreed between the parties:
Group
2015
2014
$’000
$’000
Income from services rendered to a joint venture company
335
325
Management fee paid to other shareholder of a joint venture
company
(84)
(107)
Rental expenses paid to a company with common director
(68)
–
(b)
Compensation of key management personnel
Salaries, bonus and other benefits-in-kind
3,112
3,255
Directors’ fees
377
377
Contribution to defined contribution plan
63
67
Total
3,552
3,699
Comprises amounts paid/payable to:
- Directors of the Company
1,986
2,085
- Directors of subsidiary companies
355
553
- Other key management personnel
1,211
1,061
3,552
3,699
35. Financial risk management objectives and policies
The Group’s principal financial instruments, other than derivative financial instruments, comprise short-
term and long-term bank borrowings, hire-purchase contracts, and cash and short-term deposits. The main
purpose of these financial instruments and borrowings are to raise finance for the Group’s operations.
The Group has various other financial assets and liabilities such as trade receivables and trade payables,
which arise directly from its operations.
The Group also enters into derivative instruments in the form of interest rate swap and forward currency
contracts to manage interest rate and currency risks arising from the Group’s operations and its sources of
financing.
It is, and has been throughout the year under review, the Group’s policy that no trading in derivative
financial instruments shall be undertaken.
The main risks faced by the Group and Company are foreign currency risk, interest rate risk, credit risk and
liquidity risk that arise through its normal operations.
