Natixis Corporate Solutions Limited. Annual Report and Audited Financial Statements. For the year ended 31 December 2011

Transcription

1 Annual Report and Audited Financial Statements For the year ended 31 December

2 CONTENTS Page COMPANY PROFILE 3 DIRECTORS AND OTHER INFORMATION 4 DIRECTORS REPORT 5-6 STATEMENT OF DIRECTORS RESPONSIBILITIES 7 INDEPENDENT AUDITOR S REPORT 8-9 STATEMENT OF COMPREHENSIVE INCOME 10 STATEMENT OF FINANCIAL POSITION 11 STATEMENT OF CHANGES IN EQUITY 12 STATEMENT OF CASH FLOWS 13 NOTES TO THE FINANCIAL STATEMENTS

3 COMPANY PROFILE (NCSL) is a company incorporated in Ireland with a branch in Paris and a subsidiary based in Singapore (Natixis Corporate Solutions (Asia) Pte Ltd) (see Group Corporate Structure below). NCSL is a subsidiary of Nexgen Financial Holdings Limited ( Nexgen or the Nexgen Group ). NCSL s ultimate parent company is BPCE which holds a 72% share of NATIXIS S.A. ( NATIXIS ). Nexgen is part of the Corporate Solutions division of NATIXIS BFI ( NATIXIS CORPORATE SOLUTIONS ). NATIXIS CORPORATE SOLUTIONS and Nexgen offer tailor-made financial solutions to corporations, insurance companies, banks and other financial services organisations and high net worth individuals, principally resident in Europe, the Middle East and Asia. The Nexgen Group provides its clients with creative and robust solutions and executes the transactions. NCSL participates in the sourcing and structuring of transactions, products and services on behalf of the risk taking entities of the Group (Nexgen Capital Limited ( NCL ), Nexgen Reinsurance Limited ( NRL ) and NATIXIS CORPORATE SOLUTIONS). Natixis Corporate Solutions (Asia) Pte Ltd (NCSA), a subsidiary undertaking of NCSL, acts as the Asian time zone marketing and structuring unit. It also provides trading support to the Group. NCSA holds a Capital Markets Services Licence granted by the Monetary Authority of Singapore. NCSL also carries out research and development of IT systems for the Nexgen Group. As at 31 December 2011, the Nexgen Group had 90 employees (118 at the end of 2010) and had established offices in Dublin, Singapore (NCSA) and Paris (a branch of NCSL). During the year the Milan branch closed. NEXGEN GROUP CORPORATE STRUCTURE NATIXIS S.A. (France) Nexgen Financial Holdings Limited (Dublin) Nexgen Mauritius Limited (Dormant) Universe Holdings Limited (Cayman Is) Nexgen Capital Limited (Ireland) Natixis Corporate Solutions Ltd (Ireland)* Nexgen Reinsurance Limited (Ireland) Natixis Corporate Solutions Paris Branch (France) Natixis Corporate Solutions Asia Pte Ltd (Singapore) Nexgen Management Services branch (Jersey) Ultima Trading & Global Strategies (Cayman Is) Ultima Trading & Global Strategies II (Cayman Is) Ultima Trading & Global Strategies III (Cayman Is) *The Natixis Corporate Solutions Milan Branch was closed at the end of April

4 DIRECTORS Board of Directors as at 31 December 2011 Mr Peter Blessing Non-Executive Chairman (1) Irish Ms Florence Brieu Executive Managing Director French (1) Member of the Audit Committee The following persons resigned from the Board of Directors during the year: Mr Luc Giraud resigned as Director with effect from 20 June, Mr Ravi Viswanathan resigned as Director and Co-managing Director with effect from 16 September, Mr Xavier Daudin resigned as Director with effect from 23 September, Other information Office Address (Dublin) Office Address (Paris) Natixis Corporate Solutions Natixis Corporate Solutions, Paris Branch Ormonde House 5th Floor 68/76, Quai de La Râpée 12 Lower Leeson Street Paris Dublin 2 France Ireland Registered Number Bankers BNP Paribas London 10 Harewood Avenue London NW1 6AA Company Secretary and Registered Office UK Nicola O Connell Ormonde House Natixis 12 Lower Leeson Street 30, avenue Pierre-Mendès Dublin Paris Ireland France Internal Auditors Allied Irish Banks plc PricewaterhouseCoopers Westmoreland Street Chartered Accountants and Registered Auditors Dublin 2 One Spencer Dock Ireland North Wall Quay Dublin 1 Ireland External Independent Auditors Deloitte & Touche Deloitte & Touche House Earlsfort Terrace Dublin 2 Ireland 4

5 DIRECTORS REPORT The directors submit their annual report together with the audited financial statements for the year ended 31 December The financial statements incorporate the results of Natixis Corporate Solutions Limited including the Paris branch and Milan branch, which closed during the year, but excluding the Singapore subsidiary. Update on the Company s Activities In 2011, NATIXIS, the parent company of the Nexgen Group, decided to cease the European business covering France, Italy and Spain which had formerly been carried on by NCSL and NCL. As a result of this, a number of front office and operational personnel from the Paris and Milan branches of NCSL were transferred to Natixis. The NCSL Milan branch was also closed at the end of April It was also decided that the existing European transactions between NCL and French, Italian and Spanish corporate clients would be put in run off and transferred to NATIXIS. This process began in December 2011 with a target completion date of 31 March Principal risks and uncertainties The principal risks and uncertainties of NCSL are set out in Note 3 on page 17. Results for the year and state of affairs at 31 December 2011 The profit after tax for the year was 19.5m (2010: 8.8m). Total income for the year was 59.6m (2010: 59.3m). The fees and commissions receivable amounted to 59.5m (2010: 59.3m), of which 61.5m (2010: 59.0m) relate to Intercompany Services Income. Other income/(expense) amounted to (2.1)m (2010: 0.3m). Total expenses decreased to 30.1m (2010: 46.2m) mainly due to a decrease in variable staff costs. The Company s net assets at 31 December 2011 amounted to 34.9m (2010: 15.4m). The Statement of Comprehensive Income for the year ended 31 December 2011 and the Statement of Financial Position at that date are presented on pages 10 to 11. No dividend was paid to Nexgen Financial Holdings Limited (2010: 13m). Outlook for 2012 From 2012, the Nexgen Group will cease to take on any new business in Asia and Emerging Markets. NCSL will, therefore, cease to market new transactions on behalf of NCL and the businesses of NCL and NCSL will be run off. All existing contracts will be fully managed by the Group and any commitments arising on those contracts will continue to be met with the full support of NATIXIS. The decision to put NCSL into run off has no impact on the accounting principles of the Company as adopted in the 2011 financial statements. The Company plans, with the support of its parents, to continue servicing the existing transactions and to meet all obligations as they fall due. The Company will therefore continue to operate as a going concern. 5

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7 STATEMENT OF DIRECTORS RESPONSIBILITIES Irish company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit of the company for that period. In preparing those financial statements, the directors are required to: select suitable accounting policies for the Financial Statements and then apply them consistently; make judgements and estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the European Union and comply with Irish statute comprising the Companies Acts, 1963 to They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 7

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12 STATEMENT OF CHANGES IN EQUITY Year ended Year ended 31 December 31 December Notes Profit attributable to equity shareholders 19,455 8,782 Foreign currency translation 8, Dividend paid to parent company during the year 14 - (13,000) Movement in shareholder's funds 19,555 (4,218) Balance at the beginning of the year 15,354 19,572 Balance at the end of the year 34,909 15,354 See accompanying notes to the financial statements 12

13 STATEMENT OF CASHFLOWS Year ended Year ended 31 December 31 December Notes Cash flows from operating activities Operating profit on ordinary activities before tax 29,509 13,070 Adjustments for: Depreciation and amortisation Loss on disposal of property and equipment 37 2 Interest income (185) (5) Adjusted operating profit on ordinary activities before working capital changes 29,425 13,326 Changes in operating assets and liabilities -net decrease/(increase) in other receivables 3,204 (254) -net increase in loans payable - (10,100) -net increase in other payables ,331 33,487 17,303 Taxation paid (2,388) (3,268) Net cash inflow from operating activities 31,099 14,035 Investing activities Additions to property and equipment 8 (3) (17) Interest received Net cash inflow from investing activities 182 (12) Financing activities Dividends paid 14 - (13,000) Net cash outflow from financing activities - (13,000) Decrease in cash and cash equivalents 31,281 1,023 Opening cash and cash equivalents at beginning of year 34,174 33,151 Closing cash and cash equivalents at end of year 15 65,455 34,174 See accompanying notes to the financial statements 13

14 NOTES TO THE FINANCIAL STATEMENTS 1 General Information (NCSL) is a wholly owned subsidiary of Nexgen Financial Holdings Limited (NFH). NFH and its subsidiaries, as part of NATIXIS CORPORATE SOLUTIONS, offer risk based tailor-made financial solutions to corporations, banks and other financial services organisations, and high net worth individuals, principally resident in Europe, The Middle East and Asia. The Nexgen Group has operations mainly in 3 countries and employed 90 people at 31 December 2011 including those seconded from related NATIXIS Group companies. The consolidated financial statements of NCSL s immediate parent, NFH were approved by the Board of Directors on 22 February Nexgen Financial Holdings Limited is the smallest group company for which group financial statements are prepared and of which the company is a member. 2 Significant Accounting Policies These financial statements are prepared in accordance with International Financial Reporting Standards ( IFRS s ) as adopted by the European Union. A summary of the principal accounting policies is set out below. 2.1 Basis of preparation The financial statements have been prepared on the historical cost basis. Financial assets and liabilities are recognised on a settlement date basis. Going Concern The financial information contained in this report has been prepared on a going concern basis. In making its assessment of the Company s ability to continue as a going concern, the Board of Directors recognises the plan for the orderly wind down of the business and the support provided by the ultimate parent of the Company, NATIXIS S.A. Standards and Interpretations adopted during the period Amendments to IFRS 7 Financial Instruments: Disclosures (part of improvement project), effective 1 January 2011: The amendments to IFRS 7 clarify the required level of disclosures about credit risk and collateral held and provide relief from disclosures previously required regarding renegotiated loans. The following relevant Standards and Interpretations adopted during the period did not have a significant effect on the interim financial statements of the Group: International Accounting Standard ( IAS ) 24 (revised): Related Party Disclosures, effective 1 January 2011; Amendments to IFRS 3 (2008) Business Combinations (IFRS improvement project), effective for financial periods commencing on or after 1 July 2010; Amendment to IAS 1 (IFRS improvement project) effective 1 January 2011 Amendments to IAS 32: Classification of Rights Issues, effective for financial periods commencing on or after 1 February 2010; and IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments, effective for financial periods commencing on or after 1 July Standards and Interpretations in issue not yet adopted Amendments to IFRS 7 Financial Instruments: (Enhanced Derecognition Disclosure Requirements), effective for financial periods commencing from 1 July 2011: The amendments are designed to ensure that users of financial statements are able to more readily understand transactions involving the transfer of financial 14

15 NOTES TO THE INTERIM FINANCIAL REPORT (continued) 2 Significant Accounting Policies (continued) 2.1 Basis of preparation (continued) Standards and Interpretations in issue not yet adopted (continued) assets (for example, securitisations), including the possible effects of any risks that may remain with the entity that transferred the assets. IFRS 9 Financial Instruments, effective 1 January 2015: This Standard introduces new requirements for recognition, derecognition, classification and measurement of financial instruments with the exception of amortised cost measurements. The new requirements have not yet been endorsed by the European Union ( EU ). New requirements for impairment and hedge accounting are expected to be added to IFRS 9 in IFRS 10 Consolidated Financial Statements, effective 1 January 2013: This Standard requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities. The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements. The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has: Power over the investee Exposure, or rights, to variable returns from its involvement with the investee, and The ability to use its power over the investee to affect the amount of the returns. IFRS 11- Joint Arrangements, effective from 1 January 2013: This standard provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form (as is currently the case). The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities. IFRS 11 supersedes IAS 31 Interests in Joint Ventures and SIC-13 Jointly Controlled Entities - Non-monetary Contributions by Venturers. IFRS 12 Disclosure of Interests in Other Entities, effective from 1 January 2013: This standard requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. The required disclosures are grouped into the following broad categories: Significant judgements and assumptions - such as how control, joint control, significant influence has been determined Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information) Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required. IFRS 13-Fair value measurement (effective to annual reporting periods beginning on or after 1 January 2013). This standard establishes a single source of guidance for fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as the exit price ). The standard also provides guidance for fair value determination and introduces consistent requirements for disclosure and measurement. 15

16 NOTES TO THE FINANCIAL STATEMENTS (continued) 2 Significant Accounting Policies (continued) 2.1 Basis of preparation (continued) Standards and Interpretations in issue not yet adopted (continued) The directors anticipate that the adoption of other standards and interpretations currently in issue will have no material impact on the financial statements of the Nexgen Group in the period of initial application. 2.2 Cash and cash equivalents For the purposes of the Statement of Cash Flows, cash and cash equivalents comprise balances with less than or equal to three months maturity from the date of acquisition, including cash and non-restricted balances with banks, treasury and other eligible bills, loans and advances to financial institutions, amounts due from financial institutions and short-term government securities. 2.3 Foreign currencies The financial statements are presented in Euro ( EUR ), which also is the currency of the primary economic environment in which the company operates (its functional currency). Monetary assets, liabilities and commitments denominated in other currencies are reported at the rates of exchange prevailing at the reporting date. Gains or losses arising from changes in exchange rates are included in the Statement of Comprehensive Income. Revenue, costs and non-monetary assets that are not carried at fair value are translated at the exchange rates prevailing at the dates of the respective transactions. 2.4 Taxation Corporation tax is provided on taxable profits. 2.5 Pension costs Employees may be members either of the Nexgen Group pension plan or of a personal pension plan. The Nexgen Group pension plan is a defined contribution scheme. NCSL contributes directly to the appropriate pension plans. The amount charged to the Statement of Comprehensive Income in respect of pension costs is the sum of contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown either as accruals or prepayments in the Statement of Financial Position. 2.6 Share-based payment plan In 2010 the Group s immediate parent, Natixis, introduced various new variable compensation schemes for employees for services rendered in 2009 and The compensation scheme s payment is subject to various conditions relating to the beneficiary s presence and performance. The scheme s operated within the Nexgen Group are cash-settled and are indexed to the value of the Natixis share price. For cash-settled variable compensation plans indexed to the value of the Natixis share, the accounting treatment is governed by IFRS 2 Share-based payment. The services acquired and the liability incurred are measured at fair value. Until the liability is settled, debt is remeasured at each reporting date and at the date of settlement, with any changes in fair value recognized in income for the period. The full cost of the scheme is accrued at the end of All payments due under these schemes are expected to be paid by the end of There was no share based payment scheme operated by the Nexgen Group for services rendered in

17 NOTES TO THE FINANCIAL STATEMENTS (continued) 2 Significant Accounting Policies (continued) 2.7 Property and equipment Property and equipment are stated at cost net of depreciation and any provisions for impairment. Depreciation is provided on all property and equipment at rates calculated to write-off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows: Computer Software Computer Equipment Office Equipment 3 years 3 years 3 years 2.8 Investment in subsidiary Investment in subsidiary is stated at cost. Provision is made for any permanent diminution in the carrying value of the investment. 3 Financial risks 3.1 Interest rate risks The company receives interest on cash and short term deposits based at variable rates. The company does not have significant long term interest bearing liabilities. 3.2 Market price risk Market price risk is the risk that the financial price of the instrument will fluctuate due to changes in market factors specific to the security, market factors affecting all securities traded in the market, market interest rates and foreign exchange rates. The company has no exposure to this risk as it holds investment in Natixis Corporate Solutions (Asia) Pte Limited (see note 13), which is carried at cost less provision for impairment. 3.3 Currency risk The company had no significant currency risk because substantially all assets and liabilities were held in Euro. The cash balances held in foreign currency is minimal in relation to total cash holdings of the firm as at 31 December 2011 and 31 December Liquidity risks The company ensures that it has sufficient available funds for operations and planned expansions. The company expects to meet any liquidity requirements by the liquidation of its assets. The directors actively manage the company s cash flow and consequently ensure that liquidity risks are controlled. All financial liabilities presented in the Statement of Financial Position as at 31 December 2011 and 2010 had contractual maturities of less than one year at the respective year end dates. 3.5 Credit risk Credit risk arises on financial instruments such as amounts due from group undertakings and short-term bank deposits. The ability of NCSL to recoup amounts advanced to other group companies is predicated on the overall viability and financial strength of the Nexgen Group. The maximum exposure of the company to credit risk is the carrying value of financial assets as presented on the Statement of Financial Position. 17

18 NOTES TO THE FINANCIAL STATEMENTS (continued) Year ended Year ended 31 December 31 December 4 Fees and commission Income Fees and commission income comprise: Intercompany services income (see note 6) sister subsidiaries 61,532 59,008 Other (expense)/income (2,073) ,459 59,272 Year ended Year ended 5 (i) Operating expenses 31 December 31 December Operating expenses comprise: Staff costs 13,466 27,394 Auditors' remuneration: - Audit of financial statements Depreciation Intercompany services expense (see note 6) sister subsidiaries 9,507 11,113 Deal-related fees and expenses Other administrative expenses - Professional fees 3,179 2,845 - Non executive directors fees Travel and hotels 901 1,045 - Office rental 1,229 1,471 - Other administrative expenses 1,520 1,444 30,135 46,207 Staff costs comprise: Wages and salaries 11,254 23,479 Social welfare costs 1,283 1,301 Pension costs Other staff costs 166 1,848 13,466 27,394 The average number of persons employed by the Company during 2011 was 47 (2010: 62), 1 (2010: 2) of whom was a seconded employee. In 2011, fees for directors services and auditors remuneration were paid by Nexgen Reinsurance Limited and recharged back to the Company. No other fees were charged by the external independent auditor during 2011 and 2010 with respect to tax advisory, other assurance or other non-audit services. 5 (ii) Directors emoluments (included in staff costs) 31 December 31 December EUR 000 EUR 000 Directors Fees Other emoluments 458 1, ,182 18

19 NOTES TO THE FINANCIAL STATEMENTS (continued) 5 (iii) Share-based payments Cash settled variable compensation indexed to the value of Natixis shares 31 December 31 December EUR 000 EUR 000 Balance at the beginning of the year 9,705 - Charged to expenses during the year - 9,705 Paid during the year (2,446) - Balance at the end of the year 7,259 9,705 6 Intercompany Services The Nexgen Group operates a policy to allocate part of the profit of certain transactions to NCSL where NCL/NRL acts as counterparty. A proportion of the profit embedded in the transaction is transferred to the relevant NCSL branch/subsidiary in order to recognise the contribution of that branch/subsidiary in that country based on the location of Nexgen or Natixis staff involved. This is shown in the fees and commission line of the Statement of Comprehensive Income. Intercompany service expenses represent billing by other Group companies for staff seconded to the Company. It also includes the fee income payable to the Singaporean subsidiary, NCSA. 7 Taxation Year ended Year ended 31 December 31 December Corporation tax in the Republic of Ireland: Current tax on income for the year Foreign tax: Current tax on income for the year 9,819 4,222 10,054 4,288 Effective tax rate 34.1% 32.8% The reconciliation of current tax on profit on ordinary activities at the standard Irish corporation tax rate to the Company s actual current tax charge for the year ended 31 December 2011 is shown as follows: Profit on ordinary activities before taxation 29,509 13,070 Profit on ordinary activities multiplied by the standard rate of Corporation tax in Ireland of 12.5% (2009: 12.5%) 3,689 1,634 Passive income taxed at 25% 23 - Adjustment in respect of previous years Disallowed expenses 23 8 Differences due to foreign tax 6,151 2,634 Capital allowances in excess of depreciation (17) - Current tax charge for year 10,054 4,288 19

20 NOTES TO THE FINANCIAL STATEMENTS (continued) 8 Property and equipment Computer Equipment Office Equipment Total EUR 000 EUR 000 EUR 000 Cost At 31 Dec , ,843 Additions 3-3 Disposals (193) (673) (866) Foreign currency gains/losses At 31 Dec ,122 Accumulated Depreciation At 31 Dec , ,835 Charge for the year Disposals (157) (672) (829) Foreign currency gains/losses At 31 Dec ,112 Net Book Value At 31 Dec At 31 Dec Year ended Year ended 31 December 31 December 9 Other receivables, prepayments and current tax receivable Other debtors 944 3,684 Prepayments ,102 4,306 Corporation tax receivable - 1,863 Amounts due from group undertakings less than 1 year sister subsidiaries 64,521 33,156 65,623 39,325 Year ended Year ended 31 December 31 December 10 Loans payable, other payables and current tax payable Amounts due to group undertakings sister subsidiaries 7,555 5,737 Other payables 19,240 20,200 26,795 25,937 Corporation tax payable 5,803-32,598 25,937 20

21 NOTES TO THE FINANCIAL STATEMENTS (continued) 11 Share Capital EUR 31 December 2011 Authorised: 1,000 ordinary shares of EUR 1 each 1,000 Allotted, called up and fully paid: 250 ordinary share of EUR 1 each December 2010 Authorised: 1,000 ordinary shares of EUR 1 each 1,000 Allotted, called up and fully paid: 250 ordinary share of EUR 1 each 250 The ordinary shares carry one vote per share and carry a right to dividends. 12 Reserves Capital Share Other Retained contribution Premium 1 Reserves 2 Earnings Total EUR 000 EUR 000 EUR 000 EUR 000 EUR 000 At 1 January ,112 2,112-11,130 15,354 Profit retained for the year ,455 19,455 Currency translation difference At 31 December ,112 2, ,585 34,909 1 Included in the share premium account is an amount of approximately 40,000 resulting from the redenomination of the company s share capital from US dollar to Euro in The amount in other reserves relates to an adjustment made to correct a translation difference on the Company s fixed assets arising from a change in the functional currency of the Company from US dollar to Euro in 2006 (see note 8). 13 Group company Details of subsidiary undertakings are as follows: Subsidiary % Interest at 31 December 2011 % Interest at 31 December 2010 Amount of Investment (Original Currency) Amount of Investment (Euro Equivalent) Country of incorporation and principal area of Operation Nature of Business Natixis Corporate Solutions (Asia) Pte Limited 100% 100% SGD 2,000,000 EUR 939,782 Singapore Marketing NCSL is a subsidiary undertaking of a European Union parent and is therefore exempt from the requirement to prepare consolidated financial statements by virtue of Regulation 9 of the European Communities (Companies: Group Accounts) Regulations 1992 and IAS 27. Consequently, these financial statements deal with the results of the Company as a separate entity. 21

22 NOTES TO THE FINANCIAL STATEMENTS (continued) 14 Dividends 31 December 31 December Declared and paid: Interim Dividend: EUR nil (2010: EUR52,000) per share - 13, Cash and Cash Equivalents For the purposes of the cash flow statement, cash and cash equivalents comprise the following balances: Year ended Year ended 31 December 31 December Cash at bank and in hand 934 1,018 Amounts due from Group undertakings (Note 9) 64,521 33,156 65,455 34, Transactions with Related Parties Transactions with other entities within the group are disclosed in Notes 4, 5, 9 and 10 above. The amount of compensation paid to key management personnel by the Company for the year was: Year ended Year ended 31 December 31 December Short term employee benefits 474 1,101 Post employment benefits (employer payments to pension scheme) Total 535 1, Immediate and Ultimate Holding Company The Company s immediate parent undertaking is Nexgen Financial Holdings Limited, a company incorporated in Ireland. Nexgen Financial Holdings Limited is the smallest group company for which group financial statements are prepared. Copies of the financial statements of Nexgen Financial Holdings Limited are available from the company secretary at Ormonde House, 12 Lower Leeson Street, Dublin 2. The Company s ultimate parent is BPCE, a French banking group created from the merger of the Banque Populaire and Caisse d'epargne cooperative banking groups which hold a combined 72% share in NATIXIS. The largest group for which group accounts are prepared is BPCE. 18 Commitments and Guarantees There were no commitments or guarantees at 31 December 2011 or at 31 December Events after the year end date Following a decision by the Group s parent company, NATIXIS S.A., in January 2012, Natixis Corporate Solutions Limited has been placed into run off. This event, however, is not deemed to have any impact on the 2011 results. The Company continues to operate as a going concern with the support of NATIXIS. Further details are provided in the Directors Report on page Approval of Financial Statements The Directors approved the financial statements on 8 March