185000000 IT Holding Finance SA

IT HOLDING S.p.A. Notes to the consolidated financial statements for the year ended December 31, 2003
Fair value has been determined either by reference to market value at the balance sheet date or by discounting the
relevant cash flows using current interest rates for similar instruments without any credit spread. Had the Group
considered its credit spread, the difference between fair value and carrying amount would have been lower.
29. Transactions with Related Parties
Transactions and balances between consolidated Group companies have been eliminated from the consolidated
financial statements and are not discussed herein.
The Group’s relationships with parent companies and other related parties are summarized below:
(In thousands of Euros)
Parent companies:
PA Investments S.A. 1,447
GTP HOLDING S.p.A.
Companies controlled by PA Investments S.A.:
4
Diners Club Italia S.p.A.
Unconsolidated subsidiaries:
1
FINANCIÈRE MELPAR HOLDING S.A. - liquidated
Other related parties:
-
I.C.R. - Industrie Cosmetiche Riunite S.p.A. 4
Pavia & Ansaldo Law Firm -
Other sundry 1,040
Parent Companies
F- 82
RECEIVABLE
S
PAYABLES REVENUES
AND INCOME
12
-
485
-
8,657
90
666
502
-
-
-
128
-
1,407
COSTS AND
CHARGES
71
-
-
37
11,815
375
2,210
• Receivables and revenues from the parent company PA Investments comprise interest income accrued by the
Group following the settlement of a payable in advance, charges for IT services, and recharges for expenses.
Payables and costs to the parent company relate to administrative and tax services provided thereby to Group
companies based in Luxembourg.
• Receivables due from GTP HOLDING S.p.A. of Euro 4 thousand relate to expenses incurred by IT HOLDING
S.p.A. on its behalf during the year.
Companies Controlled by PA Investments
• Diners Club Italia S.p.A.. Payables refer to payments to Group company suppliers using the Diners credit card
(Euro 440 thousand) and the use of company credit cards (Euro 44 thousand). Diners Club Italia S.p.A. has been
considered a related party as it was owned by PA Investments until July 2003.
Other Related Parties
• I.C.R.—Industrie Cosmetiche Riunite S.p.A.. All transactions with this company were of a trading nature as the
company produces perfumes sold by ITF S.p.A.. Payables related to the acquisition of the business activity
described in the section on "Significant Events".
• The December 31, 2003 balance of payables and the related costs due to a law firm, one of whose partners is on
the Board of Directors of the parent company, relates to legal services provided to Group companies.
• The remaining balances represent transactions with counterparties, some of whom are closely related to Group
directors.
There were no irregular or unusual transactions during 2003.
Transactions were carried out on an arm’s length basis.
Additional details on relationships with related parties are provided in the notes to the consolidated financial
statements.
Remuneration of Directors and Statutory Auditors
Category 2003 remuneration 2002 remuneration
Directors 1,742
2,576
Statutory Auditors 247
414