2011 - Li & Fung Limited

NOTES TO THE ACCOUNTS (CONTINUED)
33 COMMITMENTS (CONTINUED)
(b) CAPITAL COMMITMENTS
142 LI & FUNG LIMITED | ANNUAL REPORT 2011
The Group
2011 2010
US$’000 US$’000
(Restated)
Contracted but not provided for:
Property, plant and equipment 14,713 1,925
Computer software and system development costs 11,729 10,809
Authorised but not contracted for:
Property, plant and equipment 74,072 7,539
Computer software and system development costs 38,791 14,204
34 CHARGES ON ASSETS
139,305 34,477
Save as disclosed in Note 13, Note 18 and Note 21, at 31 December 2011 and 2010 there were no charges on the assets and
undertakings of the Company and the Group.
35 RELATED PARTY TRANSACTIONS
Pursuant to the master agreement for leasing of properties that the Company entered into with LF 1937, the substantial shareholder of
the Company, on 13 January 2011, the Group leased certain properties from LF 1937 and its associates during the year with aggregate
rental paid of US$23,913,000 (2010: US$15,481,000).
On 30 June 2011, the Group entered into agreements to dispose of properties in Turkey and Taiwan and the entire registered capital
of a subsidiary incorporated in the PRC to entities indirectly wholly owned by Dr. William Fung Kwok Lun and a trust established for
the family of Dr. Victor Fung Kwok King at an aggregate consideration of approximately US$26,720,000. The considerations for the
properties were determined by reference to valuations of certain independent professional valuers, which were fully paid and recognized
as cash inflow from investing activities in the consolidated cash flow statement.
On the same date, the Group entered into an agreement to dispose of the Group’s medical equipment businesses in East
Malaysia, Indonesia, Singapore and West Malaysia to subsidiaries of Li & Fung (Distribution) Limited at an aggregate consideration
of approximately US$57,700,000. The considerations were fully paid and recognized as cash inflow from investing activities in the
consolidated cash flow statement. Li & Fung (Distribution) Limited is a wholly owned subsidiary of LF 1937.
During the year, there were certain expenses incurred by LF 1937 and recharged to the Group amounting to approximately
US$6,154,000 (2010: US$6,154,000).
The foregoing related party transactions also fall under the definition of continuing connected transactions of the Company as stipulated
in the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
Save as above and the key management compensation as set out in Note 11 to the accounts, the Group had no material related party
transactions during the year.