CAHYA MATA SARAWAK ANNUAL REPORT 2016

177 Cahya Mata Sarawak Berhad A N N U A L R E P O R T 2 0 1 6 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 38. CONTINGENCIES (CONT'D.) (b) (ii) The Company has, on the basis of its forty per cent (40%) ownership interest in Malaysian Phosphate Additives (Sarawak) Sdn. Bhd. (“MPA Sarawak”), extended an unsecured corporate guarantee to Syarikat Sesco Berhad (“SSB”) to guarantee the payment by MPA Sarawak of its obligations under the Power Purchase Agreement entered into between the said parties on 3 February 2016. The Company has also, on the basis of its twenty five per cent (25%) ownership interest in OM Sarawak, extended an unsecured corporate guarantee to SSB to guarantee the payment by OM Sarawak of its obligations under the Second Amended and Restated Power Purchase Agreement entered into between the said parties on 13 June 2016. As at the reporting date, no values were placed on the unsecured corporate guarantees provided by the Company as the directors regard the value of the credit enhancement provided by the corporate guarantees to be minimal and the likelihood of event of default to be low. 39. SIGNIFICANT RELATED PARTY TRANSACTIONS In addition to the related party information disclosed elsewhere in the financial statements the following transactions between the Group and related parties took place at terms agreed between the parties during the financial year: (a) Sale and purchase of goods and services Group Company 2016 2015 2016 2015 RM’000 RM’000 RM’000 RM’000 Subsidiaries Interest income - - (11,604) (8,731) Administrative fee income - - - (10,122) Management fee income - - (1) (237) Rental income - - - (600) Interest expenses - - 30,070 26,681 Administrative fee expense - - 3,203 - Associates Sale of goods (234) (68) - - Dividend income from funds managed by an associate (8,602) (18,732) (8,602) (18,732) Interest income (3,217) (1,835) - (324) Rental income (5,492) (5,380) - - Sale of land (25,000) - - - Management fee income (1,242) - - - Purchase of goods - 68,736 - - Payment of services 113 924 113 924 Joint ventures Rental income (887) (293) - - Supervision fee income (127) - - - Contract costs 27,434 45,111 - -