Page 146 - HRC_Annual_Report_2023

144 About HRC Value Creation Management Discussion Leadership
& Analysis

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

28 CONTRACT LIABILITIES
Contract liabilities comprise of deposits made by customers for the purchases of refined oil product, which have yet to be
delivered by the Company at the reporting date.

29 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.
Related parties of the Company comprise of Shandong Linyi County Petrochemical Factory 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.
2023 2022
RM’000 RM’000
Transactions with immediate holding company:
Expenses
(i) Freight and freight brokerage services in relation to purchase of crude oil - (455)

(ii) Central management and administrative charges (504) (2,282)

Transactions with a fellow subsidiary of the immediate holding company:
Expenses
(i) Central management and administrative charges (10,553) (9,972)

(ii) Technical advisory charges (20,109) (19,801)

(iii) Rental of premises (457) (151)

Transactions with penultimate holding company:
Expenses
(i) Technical consultancy and project support services - (2,993)