Umsobomvu Youth Fund Annual Report 2006 - Nyda

notes to thefinancialstatementsfor the year ended31 March 200621 Related parties (continued)Company and GroupTypeRelatedpartiesPercentageshareholdingNature oftransactionLoans andinvestmentsgrantedTerms and conditionsAssociates4. SoundriteSound(Pty) Ltd10% UYF has entered intoa loan agreementwith SoundriteSound (Pty) Ltd foran approved amountof R2,2m.R810k(2005:R1,4m)The interest rate on this loanis prime less 1,5%. Participationfees (royalties) are chargedat a rate of the greater of2,5% of actual gross monthlyrevenue or 2,5% of R550 000per month. The loan periodterminates on 30 September2009.5. ETSHolding(Pty) Ltd10% UYF has entered intoa loan agreementwith ETS Holding(Pty) Ltd for anapproved amountof R2,1m for anincome note loanagreement and asenior debt loan ofR1,9m.NoneThe interest rate on this loanis prime. Participation fees(royalties) are charged at arate of 3,25% of actual grossmonthly revenue in respect ofincome note loan. Both loanperiods terminateon 31 March 2009.6. Paperrolls4 Africa(Pty) Ltd10% UYF has entered into Nonea loan agreementwith Paperrolls 4Africa (Pty) Ltd for anapproved amount ofR1m. The investmentwas sold during theyear under review.The interest rate on this loanis prime less 2%. Participationfees (royalties) are charged ata rate of the greater of 2,3%of actual gross monthlyrevenue or R9 200 per month.The loan period is from March2005 to March 2010.Umsobomvu Youth Fund 2006 Financial StatementsSubsidiariesBiz Trader101 (Pty)Ltd (Hi-Tech)55% UYF has enteredinto a loanagreement withHi-Tech TransformerMaintenance (Pty)Ltd for an approvedamount of R5m.R4,4mThe interest rate on this loanis prime less 2%. Participationfees (royalties) are charged ata rate of the greater of 3% ofactual gross monthly revenueor R15 000 per month. Theloan period is from June 2005to June 2010.78