Annual integrated report 2018

Notes to the consolidated financial statements 12. EQUITY, DISTRIBUTIONS AND GROUP INFORMATION (continued) 12.4 Related parties Identification of related parties The group has a related-party relationship with its subsidiaries and associates. Key management personnel has been defined as the executive and non-executive directors of the company. The definition of key management includes the close members of family of key management personnel and any other entity over which key management exercise control. Close members of family are those family members who may be expected to influence, or be influenced by that individual in their dealings with the group. They may include the individual’s domestic partner and children, the children of the individual’s domestic partner, and dependants of the individual or the individual’s domestic partner. Transactions with key management personnel Directors’ remuneration in total, paid by a subsidiary, is included in note 4.2. Details pertaining to executive and non-executive directors’ compensation are set out in note 11.2. The group encourages its employees to purchase food products from group companies. These transactions are generally conducted on terms similar to those with third parties, although in some cases nominal discounts are granted. Transactions with key management personnel are conducted on similar terms. No abnormal or non-commercial credit terms are allowed, and no impairments were recognised in relation to any transactions with key management personnel during the year, nor have they resulted in any non-performing debts at the year-end. Similar policies are applied to key management personnel at subsidiary level who are not defined as key management personnel at the group level. 2018 R’000 2017 R’000 Transactions with related parties Outstanding advances due at year-end by associates (note 9.1) 100 758 101 098 Total value of revenue received from associates 33 440 11 462 Amounts due by associates included in trade receivables 6 145 804 Total value of inventory purchased from associates 1 238 949 911 657 Total value of services purchased from associates 15 995 661 Amounts due to associates included in trade payables 108 975 96 724 Total value of revenue received from jointly controlled entity 20 831 555 Property rental income from jointly controlled entity 11 759 2 526 Details of effective interest, investments and loans to associates are disclosed in note 9.1. 12.5 Commitments and capital management The board of directors’ policy is to maintain a strong capital base so as to sustain future development of the businesses so that it can continue to generate benefits to its shareholders. Capital expenditure approved: Contracted for 831 471 675 164 Not contracted for 1 015 846 873 494 1 847 317 1 548 658 Capital expenditure split Property, plant and equipment 1 794 724 1 515 614 Computer software 52 593 33 044 1 847 317 1 548 658 It is anticipated that capital expenditure will be financed out of existing cash resources. for the year ended June 30 140 Bid Corporation Limited Annual integrated report 2018