Marks and Spencer 2009 Annual Report Download - page 115

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111
30 Related party transactions
A. Subsidiaries
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not
disclosed in this note. Transactions between the Company and its subsidiaries are disclosed in the Company’s separate financial statements.
B. Hedge End joint venture
A loan of £5.0m was received from the joint venture on 9 October 2002. It is repayable on five business days’ notice and was renewed
on 1 January 2008. Interest was charged on the loan at 5.25% until 31 December 2007 and 5.5% thereafter.
C. Lima (Bradford) joint venture
A loan facility was provided to the joint venture on 11 August 2008. At 28 March 2009, £13.6m was drawn down on this facility. Interest was
charged on the loan at 1.1% above 3-month LIBOR.
D. Marks & Spencer Pension Scheme
Details of other transactions and balances held with the Marks & Spencer Pension Scheme are set out in notes 11 and 21.
E. Key management compensation
2009
£m
2008
£m
Salaries and short-term benefits 6.0 8.1
Post-employment benefits –0.4
Termination benefits 1.1 0.4
Share-based payments 1.8 12.3
Total 8.9 21.2
Key management in the comparative period included the directors, the Group Secretary and those members of key management who were
members of the Executive Committee. In 2007 the Financial Services Authority issued new guidance on PDMRs (Persons Discharging
Managerial Responsibilities) which, combined with increased size of the Executive Board in March 2008, has enabled the Group to restrict
the number of PDMRs to Board directors only and it is this group that is considered to be key management under IAS 24 in the current year.
Under this revised basis the comparative total key management compensation would have been £15.5m. Further information about the
remuneration of individual directors is provided in the Remuneration report.
During the year, key management have purchased goods at the Group’s usual prices less a 20% discount. This discount is available to all
staff employed directly by the Group in the UK.
F. Other related party transactions
Supplier transactions occurred during the year between the Group and a company controlled by a close family member of Kate Bostock.
These transactions amounted to £5.2m during the year (last year £5.4m) with an outstanding trade payable of £nil at 28 March 2009 (last
year £0.1m). The company was a supplier prior to Kate’s employment by the Group.
Supplier transactions occurred during the year between the Group and a company controlled by Martha Lane Fox’s partner. These
transactions amounted to £0.1m during the year with an outstanding trade payable of £nil at 28 March 2009. There were no transactions
with the company last year.
31 Post balance sheet event – acquisition of subsidiary
On 31 March 2009, Marks and Spencer Reliance India Pvt Limited, a 51% subsidiary of the Group, completed the acquisition of 100%
issued share capital of Supreme Tradelinks Private Limited, which up until this date was the Group’s franchisee in India, for cash
consideration of £6.5m.
of the