Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 201141. Capital Commitments (continued)Note:Pursuant to a joint venture agreement dated 4 February 2005 entered into between SP Gas and Lang Fang DevelopmentDistrict Northern China Petroleum Sales Company (the “Joint Venture Partner”), SP Gas and the Joint VenturePartner agreed to set up a joint venture company as an equity joint venture company in the PRC for a term of 30years commencing from the date of issue of the business license of the joint venture company, which will be engagedin the wholesale, sales, transportation and storage of petroleum gas.On 15 March 2005, SP Gas, the Joint Venture Partner and Wuhan Hengsheng Shimao Petroleum Natural Gas PipelineEngineering Company Limited (the “New Joint Venture Partner”) entered into a supplemental agreement. Pursuantto the supplemental agreement, the Joint Venture Partner agreed to withdraw and the New Joint Venture Partneragreed to replace the Joint Venture Partner in the formation of the joint venture company. The registered capital ofthe joint venture company was RMB50 million which was to be contributed by SP Gas as to RMB47.5 million and bythe New Joint Venture Partner as to RMB2.5 million. At 31 March 2010, approximately RMB13.2 million, equivalentto approximately HK$14.3 million had been contributed by SP Gas.The joint venture company, namely 中 油 中 盈 石 油 燃 氣 銷 售 有 限 公 司 , was treated as a subsidiary of the Group at 31March 2010.During the year ended 31 March 2011, the Group has disposed of SP Gas to Mr. Leung at a consideration of HK$13.3million. The sole asset of SP Gas was the 95% equity interest of CNPC. The disposal was completed on 26 October2010 as detailed in note 39.At the end of the reporting period, the Company had no significant capital commitments.42. Related Party TransactionsSave as disclosed elsewhere in these consolidated financial statements, the Group had the followingsignificant transactions with related parties during the year:Compensation of key management personnel2011 2010HK$’000HK$’000Short-term employee benefits 16,750 9,942Post-employment benefits 52 44Equity-settled share-based payments 603 –17,405 9,986The above related party transactions do not constitute connected transactions or continuing connectedtransactions as defined in Chapter 14A of the Listing Rules.Annual Report 2011121