254 YINSON HOLDINGS BERHAD ACCOUNTABILITY 38. DERIVATIVES (CONTINUED) (b) Subsidiaries of the Group had entered into the forward contracts to mitigate the Group’s exposure from exchange rate movements on foreign currency positions originating primarily from firm commitments denominated in currencies which are not in the functional currency of the respective subsidiaries and from net assets in foreign operations where the functional currencies are not in Ringgit Malaysia. The fair values of the interest rate swaps and foreign exchange forward contracts are determined by using the prices quoted by the counterparty banks which are categorised as Level 2 of the fair value hierarchy. There is no transfer from Level 1 and Level 3 or out of Level 2 during the financial year. The effects of the interest rate swaps and foreign exchange forward contracts on the Group’s financial position and performance are disclosed in Note 43(a) and Note 43(c). 39. SIGNIFICANT RELATED PARTY DISCLOSURES 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 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 or common significant influence. Related parties may be individuals or other entities. (a) Significant related party transactions In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions between the Group and related parties took place at terms agreed between the parties during the financial year: Group Company 2025 RM million 2024 RM million 2025 RM million 2024 RM million Related companies controlled by certain directors: - disposal of OSV business (Note 48(c)) 181 - - - - purchase of vehicles (2) (3) - - - service fee income 1 - - - - service fee charges (2) (2) - - Joint ventures and associates: - loan (35) (56) - - Joint ventures: - dividend income 34 35 - - - interest income 1 - - - Associates: - interest income 3 - - - Subsidiaries: - advances received - - 214 58 - repayment of advances paid - - 116 55 - repayment of advances received - - 74 - - management fee income - - 33 47 - dividend income - - 367 257
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