TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
106
NOTES TO THE FINANCIAL STATEMENTS
32. 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 and of the Company either directly or indirectly. The key
management personnel include all the Directors of the Group, and certain members of senior management of the Group.
Controlling related party relationships are as follows:
(i)
The subsidiaries as disclosed in Note 35.
(ii) The substantial shareholders of the Company.
Significant related party transactions
(i)
Significant transactions with Warisan TC Holdings Berhad (“WTCH”), APM Automotive Holdings Berhad (“APM”)
and Tan Chong International Limited (“TCIL”) Groups, companies in which a Director of the Company, Dato’ Tan
Heng Chew, is deemed to have substantial financial interests, are as follows:
Group
2014
2013
RM’000
RM’000
With WTCH Group
Purchases
(27,220)
(16,268)
Sales
71,270
23,569
Provision of hire purchase and leasing
36,634
17,675
Insurance agency, workshop services and administrative services
5,812
3,854
Travel agency and car rental services
(3,188)
(5,836)
Rental income receivable
308
136
Rental expense payable
(591)
(391)
Contract assembly fee receivable
2,551
5,791
With APM Group
Purchases
(136,849)
(135,364)
Sales
9,540
6,152
Insurance agency, workshop services and administrative services
850
965
Rental income receivable
5
4
Rental expense payable
(1,960)
(1,440)
With TCIL Group
Purchases
-
(31)
Sales
10,112
9,191
Insurance agency, workshop services and administrative services
13
-
Contract assembly fee receivable
30,848
26,582
These transactions have been entered into in the normal course of business and have been established under
negotiated terms.
