Page 94 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

27. Financial Commitments

The Directors are of the opinion that all known liabilities and commitments have been taken into account in the
preparation of the financial statements under review. These liabilities are relevant in assessing the Company's state
of affairs as at 31 March, 2021.

28. Contingencies
There are litigations against the Company as at 31 March, 2021 the outcome of which had not been determined.

However, the directors, having sought legal advice from professional counsel are of the opinion that no material
liabilities may arise in the ordinary course of business. No provision was made in these financial statements in that
respect.

29. Related Parties
The directors, their close family members and any employee who is able to exert a significant influence on the
operating policies of the Company are considered as related parties. Key management personnel are also regarded
as related parties. Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive
or otherwise) of that entity.

a. Related Parties Transactions

The company enters into transactions with some companies in which the chairman, Dr. Oba Otudeko, has significant
interest (related parties) in the normal course of business and at normal market prices.

The details of transactions and balances outstanding at the end of year are as follows:

Due from related parties
Nature of Nature of Opening Transactions Total
Relationship Transaction balances during the
Year
N'000 N'000 N'000
Due from related parties
Uraga Real Estates Ltd Common Director Borrowings 150,000 (150,000) -
Anchorage Leisure Ltd Common Director Borrowings 574,557 (574,557) -
Honeywell Oil & Gas Ltd Common Director Borrowings 296,058 (296,058) -
Uraga Power Solution Ltd Common Director Borrowings 449,664 (21,271) 428,393
Uraga Power Solution Ltd Common Director Lease 2,536,195 (178,038) 2,358,157
4,006,474 (1,219,924) 2,786,550

b. Transactions with Key Management Personnel

The Company's key management personnel, and persons connected with them, are also considered to be related
parties for disclosure purposes.

No key management personnel or their immediate relatives engaged in transactions with the Company during the
year (2020: Nil).

World of Possibilities HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 95