Page 131 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 129

28 siGnificant relateD parties DisclosUres

For the purposes of these financial statements, parties are considered to be related to the Company if the party has the ability,
directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and
operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant
influence. Related parties may be individuals or other entities.
Key management personnel are defined as those persons having authority and responsibility for planning, directing and
controlling the activities of the Company either directly or indirectly.
Related parties of the Company comprise of Shandong Hengyuan Petrochemical Group Company Limited and its related
companies.
In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significant
related party transactions. The transactions described below were carried out on agreed terms.
2020 2019
rM’000 rM’000
Transactions with immediate holding company:
Malaysia Hengyuan International Limited (“MHIL”)
income
(i) Sale of refined products 274,791 273,127

expenses
(i) Purchase of refined products (58,800) (8,459)

(ii) Central management and administrative charges (52) (6,084)

(iii) Technical advisory charges - (7,345)

Transactions with a fellow subsidiary of the immediate holding company:
expenses
(i) Purchase of refined products (646) (5,033)

(ii) Central management and administrative charges (8,449) (3,480)

(iii) Technical advisory charges (24,020) (10,767)

Key management personnel are those persons who have authority and responsibility for planning, directing and controlling
the activities of the Company either directly or indirectly. Key management personnel of the Company include the Board of
Directors and senior management personnel of the Company.
2020 2019
rM’000 rM’000
Compensation for key management personnel:
- salaries, bonus and allowances 7,474 7,744
- fees 1,983 1,933
- defined contribution plan 207 366
- benefits in kind 2 4