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NOTES TO THE FINANCIAL STATEMENTS
31 March 2010
36. RELATED PARTY TRANSACTIONS
(a) During the year, the Group had the following related
party transactions:
2010 2009
Notes HK$’000 HK$’000
Sales to Megawell (i) 507,931 468,386
Purchases from Megawell (ii) 266,871 339,838
Rental expenses paid to
related companies
(iii) 23,469 17,372
Notes:
(i)
(ii)
(iii)
The sales to Megawell, an associate of the Group, were
made according to the prices and conditions offered to
the major customers of the Group.
The directors considered that the purchases from
Megawell were made according to the prices and
conditions similar to those offered to other customers of
the Megawell.
The rental expenses were paid to related companies,
of which certain directors of the Company are also the
directors and beneficial shareholders, for the provision
of directors’ quarters, retail outlet and training center for
certain subsidiaries in Hong Kong and Mainland China.
The directors considered that the monthly rentals were
charged based on the prevailing market rates at the
dates of the tenancy agreements. The rental expenses
of the directors’ quarters were included in the directors’
remuneration as detailed in note 7 to the financial
statements.
In addition, the Company and the Group have
provided certain guarantees for banking facilities
granted to Megawell, as detailed in note 33(a) to the
financial statements.
36.
(a)
(i)
(ii)
(iii)
7
33(a)
TEXWINCA HOLDINGS LIMITED ANNUAL REPORT 2010
115