Related parties include shareholders, associates and entities under common ownership and control of the Group’s major shareholders and key management personnel. The Company and its subsidiaries, in the ordinary course of their business, enter into various sale, purchase and service transactions with related parties. Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.
On 8 July 2016, Onexim Group Limited ceased to be related party of the Group following disposal of 18.66% of the Company’s share through Rinsoco Trading Limited.
Details of significant transactions between the Group and other related parties are disclosed below.
|Outstanding balances with related parties under common control of significant shareholders||31 December 2016||31 December 2015|
|Loan issued including interest receivable||188,762||-|
|Trade and other payables||4,163||896|
|Trade and other receivables||39||26|
|Cash and cash equivalents||-||400,423|
|Prepayments for acquisition of property, plant and equipment and intangible assets||-||605|
Cash and cash equivalents as at 31 December 2015 comprise cash on a brokerage account.
The loan to a related party is a US$ denominated revolving loan facility granted for a period of 2 years under market conditions.
|Outstanding balances with associate||31 December 2016||31 December 2015|
|Trade and other payables||-||12,760|
|Transactions with related parties under common control of significant shareholders||2016||2015|
|Revenue (sales of potassium chloride)||27,497||22,243|
|Purchase of inventories||7,416||3,745|
|Purchase of property, plant and equipment and assets under construction||1,651||-|
|General and administrative expenses||1,450||1,300|
|Transactions with associate||2016||2015|
Key management’s compensation
Key management personnel compensation consists of remuneration paid to executive directors and other directors for their services in full- or part-time positions. Compensation is made up of annual remuneration and a performance bonus depending on operating results.
Key management compensation is presented below:
|Expenses||Accrued liability||Expenses||Accrued liability|
|Short-term employee benefits||7,412||4,866||18,167||7,444|