Annual Report 2010
29 Related party transactions The parent company of the Group is Jardine Strategic Holdings Limited (‘JSH’) and the ultimate holding company of the Group is Jardine Matheson Holdings Limited (‘JMH’). Both companies are incorporated in Bermuda. In the normal course of business, the Group undertakes a variety of transactions with its associates and with JMH and its subsidiaries and associates. In addition, the Group paid a management fee of US$0.2 million (2009: US$0.4 million) to Jardine Matheson Limited (‘JML’), a subsidiary of JMH, being a fee of 0.5% of the Group’s net profit in consideration for certain management consultancy services provided by JML. The Group also received rental payment in respect of a residential property from JML based on normal market terms of US$0.5 million (2009: US$0.5 million). The Group has no outstanding balance with JML as at 31st December 2010 (2009: US$0.2 million). During 2010, the Group managed five (2009: five) associate hotels and received management fees of US$10.9 million (2009: US$8.9 million) based on long-term management agreements on normal commercial terms. The outstanding balances with associates are set out in debtors and prepayment in note 15. The Group uses Jardine Lloyd Thompson (‘JLT’), an associate of JMH, to place certain of its insurance. Brokerage fees and commissions, net of rebates, paid by the Group in 2010 to JLT amounted to US$0.5 million (2009: US$0.5 million). The Group has no outstanding balance with JLT as at 31st December 2010 (2009: nil). The Group provides hotel management services to Hongkong Land (‘HKL’), which became a subsidiary of JSH on 30th June 2009. Total management fees received from HKL in 2010 amounted to US$0.8 million (2009: US$0.3 million and US$0.2 million as a subsidiary and an associate respectively), based on long-term management agreements on normal commercial terms. Details of Directors’ emoluments (being the key management personnel compensation) are shown on page 84 under the heading of ‘Directors’ appointment, retirement, remuneration and service contracts’.
30 Summarized balance sheet of the Company Included below is certain summarized balance sheet information of the Company disclosed in accordance with Bermuda Law:
2010 US$m
2009 US$m
659.1
Subsidiaries at cost
768.0
Net current liabilities
(1.1 )
Net operating assets
766.9
658.1
49.9
49.6
Share capital (refer note 21)
(1.0 )
Share premium (refer note 22)
179.0
173.6
Revenue reserves and other reserves
538.0
434.9
Shareholders’ funds
766.9
658.1
77