SEO Version
Notes to the Financial Statement
For the year ended 31st December 2011
NATURAL COOL HOLDINGS LIMITED
Annual Report 2011
101
29 Contingencies (Continued)
Estimates of the Company’s obligation arising from the fnancial guarantee contracts may be
affected by future events, which cannot be predicted with certainty. The assumptions made may
well vary from actual experience so that the actual liability may vary considerably from the best
estimates. As of balance sheet date, there is no provision made in respect of the obligation.
Continuing financial support
The Company has given formal undertakings, which are unsecured, to provide fnancial support to
its subsidiaries. As at 31 December 2011, the net current liabilities and defcits in shareholders’
funds of these subsidiaries amounted to approximately $7,284,000 (2010: $4,877,000) and
$1,667,000 (2010: $698,000) respectively.
Contingent asset
In September 2011, the Benoi property was damaged by fre. Subsequent independent investigation
by the Singapore Civil Defence Force has opined that the most probable cause of the fre was
accidental in nature. The Group has notifed the insurance company of the fre but the insurance
company has denied its obligations on grounds of alleged breaches of policy terms and conditions.
The Group is considering all its legal rights and remedies against all parties involved in the matter.
The carrying amount as at 31 December 2011 and insured value of the Benoi property is $11 million
and $12 million respectively.
30 Related parties
Transactions with key management personnel
Key management personnel compensation
In addition to their salaries, the Group also provides non-cash beneft to directors and executive
offcers.
Key management personnel of the Group and the Company are those persons having the authority
and responsibility for planning, directing and controlling the activities of the entity. The directors
and senior management staff of the Group and the Company are considered as key management
personnel.
Key management personnel compensation, included in staff costs, is as follows:
Group
2011
2010
$
$
Short-term employee benefts
3,651,617 6,451,773
Post-employment benefts
113,614
229,171
3,765,231 6,680,944
Included in key management personnel compensation is director’s remuneration of the Company of
$574,777 (2010: $3,953,870)
Powered by FlippingBook Publisher