Related parties

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
Advances received 1,317 158
Trade and other receivables 39 26
Cash and cash equivalents - 400,423
Restricted cash - 200,000
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
Other revenue 1,264 -
Purchase of inventories 7,416 3,745
Transportation expenses 6,365 2,743
Purchase of property, plant and equipment and assets under construction 1,651 -
General and administrative expenses 1,450 1,300
Other expenses 88 104
Transactions with associate 2016 2015
Other income 6,317 -
Distribution costs 4,686 12,760
Transshipment 4,288 4,931

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:

  2016 2015 
  Expenses Accrued liabilityExpensesAccrued liability
Short-term employee benefits 7,412 4,86618,1677,444
Termination benefits 134 -1,952-
Total 7,546 4,86620,1197,444