8 / 67
4
Nature of Transactions with the
HEINEKEN Group
Estimated aggregate
value as disclosed in
the Circular to
Shareholders dated
22 March 2017
(RM’000)
Actual value
transacted since
13 April 2017 till
22 March 2018
(RM’000)
Estimated
aggregate value
from 54
th
AGM
to the next AGM
(RM’000)
4.
Fees received / receivable from
the HEINEKEN Group for
professional services which
include market research and
analysis, trade and marketing
advisory, innovation
development and other
support services
31,200
13,950
15,000
5.
Sale of beverage products to the
HEINEKEN Group
20,000
6,417
10,000
Total
139,400
84,205
112,700
None of the actual value of other recurrent related party transactions as disclosed above
has exceeded the estimated value by 10% or more.
All estimated values of the respective Recurrent Related Party Transactions from the date
of the 54
th
AGM to the next AGM are estimated based on the past transactions entered
into by the Group and the Related Parties as well as estimates made based on
management’s projected sales / businesses, orders and agreements. The actual value of
these transactions may vary from the estimated value disclosed below.
As of the financial year ended 31 December 2017, there was no amount due and owing
to the Group by its related parties arising from the Recurrent Related Party Transactions
that exceeded the credit term.
2.4 Guidelines and Review Procedures for Recurrent Related Party Transactions
To ensure that such Recurrent Related Party Transactions are conducted at arm’s length
and on normal commercial terms consistent with the Group’s usual business practices
and policies and will not be prejudicial to the Company’s shareholders, the following
principles will apply:
i)
transactions with the Related Parties will only be entered into after taking into
account the pricing, level of service, quality of product, market forces and other
related factors on terms not more favourable to the Related Parties than those
generally available to the public and not detrimental to the minority shareholders of
the Company;
ii)
transactions with Related Parties will only be entered into under similar commercial
terms for transactions with unrelated third parties, which depend on the demand
and supply of the products and subject to the availability of the products in the
domestic market;
iii)
should a cost plus basis of pricing be used, the appropriate mark-up to cost shall
be determined on an arm’s length price based on a percentage earned by the
Company on unrelated party transactions which are the same or very similar to the
related party transactions;