Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 206 F R A S E R & N E A V E H O L D I N G S B H D NOTES TO THE FINANCIAL STATEMENTS 33. RELATED PARTIES IDENTITY OF RELATED PARTIES For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control. Related parties may be individuals or other entities. Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly and entities that provides key management personnel services to the Group. The key management personnel include all the Directors of the Group and certain members of senior management of the Group. The Group has related party relationship with its holding companies, significant investors, subsidiaries, associate, joint venture and key management personnel. SIGNIFICANT RELATED PARTY TRANSACTIONS Related party transactions had been entered into in the normal course of business under negotiated trade terms. The significant related party transactions of the Group and the Company are shown below. The balances related to the below transactions are shown in Note 11 and 19. Group Company Note 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 A. F&NL Group Sales of goods 266,876 287,658 – – Purchases of goods (184,210) (161,379) – – Royalties paid (54,119) (50,409) – – Internal audit fees paid (1,275) (1,161) – – Receipt of corporate service fees 1,581 20 – – B. Subsidiaries Dividend income – – 213,220 429,831 Finance income – – 21,338 8,614 Management fees – – (410) (457) C. CHB Group Purchases of goods (12) (3,508) – – Dividend income 3,733 8,087 3,733 8,087 D. VCSB Finance income 5,814 5,830 5,814 5,830 E. Thai Beverage Public Company Limited Group 33.1 Sales of goods 1,747 1,442 – – Purchases of goods (2,845) (2,260) – – Marketing expenses (18,223) (25,487) – – Corporate service fees paid (1,999) (623) – – F. BJC Group 33.1 Sales of goods 68,099 52,932 – – Purchases of goods (20,237) (25,266) – – Other expenses (10,254) (1,726) – –