2016 — Page 137

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

CONTINGENT LIABILITIES

Financial guarantees issued

At 31 December 2016, the Company has issued the following guarantees:

(a)

guarantees to certain suppliers in respect of granting or giving credit facilities to its wholly-owned subsidiaries; and

(b)

guarantees to a bank in respect of banking facilities granted to its wholly-owned subsidiaries.

30

Under the guarantees, the Company is liable to the amount due from the subsidiaries to these respective parties in the event of any default and its liability shall at no time exceed the sum stated on the letters of guarantee.

At the end of the reporting period, the directors do not consider it probable that a claim will be made against the Company under any of the guarantees. The maximum liability of the Company at the end of the reporting period under the guarantees issued above is the outstanding amount due to the relevant parties by its wholly-owned subsidiaries, being HK$110,000

(2015: HK$645,000).

The Company has not recognised any deferred income in respect of the guarantees issued as its fair value cannot be reliably measured using observable market data and its transaction price was HK$Nil.

MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS

(a)

Key management personnel remuneration

Remuneration for key management personnel of the Group, including amounts paid to certain of the Company's directors, chief executive and the highest paid employees as disclosed in notes 8 and 9 respectively, is as follows:

Short-term employee benefits Post-employment benefits

Total remuneration is included in "staff costs" (see note 6(a)).

2016

HK$'000

2015

HK$'000

5,617

107

5,306

98

5,724

5,404

Hong Kong Ferry (Holdings) Company Limited

Annual Report 2016 135

TANGKI ZELODI LAMAN KERA EMASI J

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