Umsobomvu Youth Fund Annual Report 2006 - Nyda

notes to thefinancialstatementsfor the year ended31 March 200621 Related parties (continued)Company and GroupTypeRelatedpartiesPercentageshareholdingNature oftransactionLoans andinvestmentsgrantedTerms and conditionsJointventures1. Jointlycontrolled33% UYF has investedR8m with FESR8,6m(2005:FNB will lend funds to SME’sand remit collectionsassetwith a commitmentR7,4m)to UYF as and when received.with FNBto invest R8om.EnterpriseSolutions(FES)2. Jointly50% UYF undertook toR171kFNB will lend funds to SME’scontrolledinvest up to R1m of(2005: Nil)and remit collections to UYFasset withits own funds andas and when received.MassmartR1m of MassmartHoldingsFunds in franchisesLtdcosting less thanR150k.Associates1. Franchise80% UYF has investedR20mBusiness Partners will lendFund [en-R60m of its R100m(2005:funds to SME’s and remitcommanditecommitment inR20m)collections as from April 2008partnershipthe Franchiseto UYF.betweenFund in order toUYF andassist young, blackBusinessentrepreneurs toPartnersstart franchises.(Pty) Ltd]2. Chicken26% UYF has entered intoR446kThe interest rate on this loanKwasaa loan agreement(2005: Nil)is prime less 2%. Participation(Pty) Ltdwith Chicken Kwasafees (royalties) are charged at(Pty) Ltd for ana rate of the greater of 1,25%approved amountof actual gross monthlyUmsobomvu Youth Fund 2006 Financial Statements3. SerokoloHealthSolutions(Pty) Ltdof R1,75m.26% UYF has entered intoa loan agreementwith Serokolo HealthSolutions (Pty) Ltdfor an approvedamount of R1,2m.R560k(2005: Nil)revenue or R9 100 per month.The loan period is from March2005 to March 2010.The interest rate on this loanis prime. Participation fees(royalties) are charged at arate of the greater of 2,5% ofactual gross monthly revenueor R7 500 per month. The loanperiod is from October 2005to October 2010.76