MSM Malaysia Holdings Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 35 SIGNIFICANT RELATED PARTYTRANSACTIONS In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significant related party transactions and balances. Federal Land Development Authority (“FELDA”), a significant shareholder of the Group’s ultimate holding company, FGV Holdings Berhad, owns 33.67% (2018: 33.67%) of the issued share capital of FGVH, which in turn has an effective 51% interest in the Company. The Group considers that, for the purpose of MFRS 124 “Related Party Disclosures”, FELDA and the Malaysian Government is in the position to exercise significant influence over it. As a result, the Malaysian Government and Malaysian Government controlled bodies (collectively referred to as “government-related entities”) are related parties of the Group and the Company. Apart from the individually significant transactions as disclosed in the financial statements, the Group and the Company have collectively, but not individually, significant transactions with other government-related entities which include but not limited to the following: • Deposit placing with and deposit taking from government-related entities • Utilities services provided by the government-related entities These transactions are conducted in the ordinary course of the Group’s business on terms consistently applied in accordance with the Group’s internal policies and processes. These terms do not depend on whether the counterparties are government- related entities or not. Related parties and their relationship with the Group are as follows: Related parties Relationship Federal Land Development Authority (“FELDA”) Significant shareholder of FGVH FGV Holdings Berhad (“FGVH”) Ultimate holding company Felda D'Saji Sdn Bhd (“D'Saji”) Subsidiary of FELDA KPFTrading Sdn Bhd (formerly known as Felda Trading Sdn Bhd) (“KPF”) Subsidiary of FELDA Felda Holdings Berhad (“FHB”) Subsidiary of FGVH FGV Prodata Systems Sdn Bhd (“FPSB”) Subsidiary of FGVH FGV Security Services Sdn Bhd (“FSS”) Subsidiary of FGVH Felda Engineering Services Sdn Bhd (“Felda Engineering”) Subsidiary of FGVH FGV Capital Sdn Bhd (“FGVC”) Subsidiary of FGVH FGV Fertiliser Sdn Bhd (“FPM”) Subsidiary of FGVH MSM Sugar Refinery (Johor) Sdn Bhd (“MSM Johor”) Subsidiary company MSM Logistics Sdn Bhd (“MSM Logistics”) Subsidiary company MSM Prai Berhad (“MSM Prai”) Subsidiary company MSM Perlis Sdn Bhd (“MSM Perlis”) Subsidiary company MSMTrading & Distribution Sdn Bhd (“MSMTrading”) Subsidiary company MSMTrading International DMCC (“MSMTrading International”) Subsidiary company 205 FINANCIAL STATEMENTS 08