annual report - Harvey Norman Company Reports & Announcements

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
30. Key Management Personnel (continued)
(f) Other Transactions and Balances with Key Management Personnel
(i) Loans from directors to subsidiaries of Harvey Norman Holdings Limited:
Derni Pty Limited (a wholly owned subsidiary of Harvey Norman Holdings Limited)
borrowed money from entities associated with I.J. Norman, M.J. Harvey, A.B. Brew
and G. Harvey. Interest is payable at commercial rates. These loans are
unsecured and repayable at call.
Net amounts (paid to) / received from entities associated with the above
mentioned directors and their related parties.
32,406,368
C O N S O L I D A T E D
2012 2011
$ $
(4,537,444)
36,943,812
4,246,509
Interest paid/payable 2,122,905 2,166,333
(ii) Legal fees paid to a director-related entity:
Legal fees were paid to the firm of which Mr C.H. Brown is a partner for professional
services rendered to the consolidated entity in the normal course of business.
(iii) Lease of business premises from Ruzden Pty Limited:
The consolidated entity leases business premises at Bundall, Queensland from
Ruzden Pty Limited. Mr G. Harvey, Ms K.L. Page, Mr M.J. Harvey, Mr I.J. Norman
and Mr A.B. Brew have an equity interest in Ruzden Pty Limited. The lease
arrangements were approved by shareholders in the General Meeting held 25
May 1993, and in the General Meeting held 31 August 1999. The lease is subject to
normal commercial terms and conditions. Rent paid by the consolidated entity to
Ruzden Pty Limited is:
(iv) Other income derived by related entities of key management personnel:
Certain franchises are operated by entities owned or controlled by relatives of key
management personnel under normal franchisee terms and conditions.
Aggregated net income derived by entities owned or controlled by relatives of
key management personnel is:
(v) Perth City West Retail Complex
2,242,169
4,087,523
1,148,527
1,045,252
3,977,720
1,605,224
By a contract for sale dated 31 October 2000, Gerald Harvey, as to a one half share as tenant in common, and a
subsidiary of Harvey Norman Holdings Limited, as to a one half share as tenant in common, purchased the Perth City
West retail complex for a purchase price of $26.60 million. In the financial report for the year ended 30 June 2012 this
has been accounted for as a joint venture entity as disclosed in Note 36 to the financial statements. This transaction
was executed under terms and conditions no more favourable than those which it is reasonable to expect would
have applied if the transaction was at arm‟s length. The property was purchased subject to a lease of part of the
property in favour of a subsidiary of Harvey Norman Holdings Limited (the "Lessee"). That lease had been granted by
the previous owner of the property on arm's length normal terms and conditions. Gerald Harvey is entitled to one half
of the rental paid by the Lessee. The amount of rental and outgoings paid by the Lessee to Gerald Harvey and the
subsidiary of Harvey Norman Holdings Limited for the year ended 30 June 2012 was $1.73 million each and for the
year ended 30 June 2011 was $1.78 million.
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