UOBKH/AR09 [web] - ChartNexus

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50 Notes To Financial Statements (continued) 31 December 2009 Financial instruments measured at fair value based on level 3 Financial assets, available-for-sale (Unquoted equity shares) $ 2009 Opening balance 71,786 Fair value increase recognised in other comprehensive income 9,132 Closing balance 80,918 Significant assumptions in determining fair value of financial assets and liabilities Fund investments – available-for-sale The Group invests in managed funds which are not quoted in an active market and which may be subjected to restrictions on redemptions such as lock up periods, redemption gates and side pockets. Transactions in the shares of such funds are valued based on the Net Assets Value (NAV) per share published by the administrator of those funds. Such NAV is adjusted when necessary, to reflect the effect of the time passed since the calculation date, liquidity risk, limitations on redemptions and other factors. Depending on the fair value of an underlying fund’s assets and liabilities and on the adjustments needed on the NAV per share published by that fund, the Group classifies the fair value of that investments as either level 2 or level 3. Unquoted equity shares – available-for-sale Fair value is estimated using a net asset methodology to appropriately measure its assets and liabilities which includes some assumptions that are not supportable by observable market prices or rates. If these inputs to the valuation model were 10% higher/lower with all the other variables held constant, the carrying amount of the shares would decrease/increase by $8,092. 5 SIGNIFICANT RELATED PARTY TRANSACTIONS (a) The Group in the normal course of business acts as brokers in securities for certain related companies, directors of the Company and its subsidiaries and their connected persons. In addition to the above and the related party transactions disclosed elsewhere in the financial statements, significant related party transactions during the financial year were as follows: The Group 2009 2008 $ $ Rental of premises paid/payable to a related party 16,747,268 6,152,475 Related party transactions were made on terms agreed between the parties concerned. (b) Key management personnel compensation is as follows: The Group 2009 2008 $ $ Salaries and other short-term employee benefits 14,736,053 13,808,597 Employer’s contribution to defined contribution plans, including Central Provident Fund 57,494 57,612 14,793,547 13,866,209 (c) The Group has banking facilities from United Overseas Bank Limited Group (which is defined in the SGX-ST listing manual as a person who holds directly or indirectly 15% or more of the nominal amount of all voting shares in the Company) in the normal course of business. The outstanding borrowings as at 31 December 2009 are disclosed in Note 19 as borrowings from a related party.
6 CASH AND CASH EQUIVALENTS The Group The Company 2009 2008 2009 2008 $ $ $ $ Bank balances with: – Related party (Note 5) 22,575,641 30,750,136 119,955 459,035 – Non-related banks 119,499,780 370,827,233 – – Cash on hand 12,106 12,204 – – Fixed deposits with: 142,087,527 401,589,573 119,955 459,035 – Related party (Note 5) 3,575,284 217,915,990 – – – Non-related banks 35,115,219 89,987,310 – – 38,690,503 307,903,300 – – 180,778,030 709,492,873 119,955 459,035 At the end of the reporting period, the carrying amounts of cash and cash equivalents approximate their fair values. Fixed deposits bear average effective interest rates of 6.24% (2008 : 1.81%) per annum and are for a tenure of approximately 29 days (2008: 14 days). For the purpose of presenting the consolidated cash flow statement, the consolidated cash and cash equivalents comprise the following: The Group 2009 2008 $ $ Cash and bank balances (as above) 180,778,030 709,492,873 Less: Bank overdrafts (Note 19) (13,348,427) (769,106) Cash and cash equivalents per consolidated cash flow statement 167,429,603 708,723,767 7 OUTSTANDING CONTRACTS RECEIVABLE/PAYABLE Outstanding contracts receivable and payable represent amounts receivable or payable in respect of trades which have been executed on an exchange prior to the end of the reporting period and have not been settled as at the end of the reporting period. (a) Outstanding contracts receivable comprises the following: The Group 2009 2008 $ $ Due from third parties 1,063,051,910 402,696,244 (b) Outstanding contracts payable comprises the following: The Group 2009 2008 $ $ Due to third parties 944,002,666 357,960,744 The carrying amounts of outstanding contracts receivable and payable approximate their fair values due to the relatively short term maturity period for the financial instruments. 51
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Page 4 and 5: 2 Corporate Information Board of Di
Page 6 and 7: 4 UOB-Kay Hian Holdings (continued)
Page 8 and 9: 6 Group Group Group Group For the Y
Page 10 and 11: 8 Chairman’s Statement Stock mark
Page 12 and 13: 10 Economic Review & Outlook 2010 (
Page 14 and 15: 12 Economic Review & Outlook 2010 (
Page 16 and 17: 14 Corporate Governance Report (con
Page 22 and 23: 20 Profile Of Directors & Key Manag
Page 24 and 25: 22 Report Of The Directors The dire
Page 26 and 27: 24 In the opinion of the directors,
Page 28 and 29: 26 ASSETS Statements Of Financial P
Page 30 and 31: 28 Group Statements Of Changes In E
Page 32 and 33: 30 Company Statements Of Changes In
Page 34 and 35: 32 Consolidated Statement Of Cash F
Page 36 and 37: 34 Notes To Financial Statements (c
Page 72 and 73: 70 Analysis Of Shareholdings as at
Page 74: 72 Notes A member entitled to atten

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