Chemical Company of Malaysia Berhad Annual Report 2019

f) Sale and Purchase Agreement of Trademarks for a total purchase consideration of RM73.00, a Trademark Deed of Assignment and Registered User Agreement entered into between CCM and Duopharma on 11 April 2018 pursuant to Trademarks License Agreement dated on even date. g) Trademarks License Agreement dated 11 April 2018 between CCM and Duopharma (“Trademarks License Agreement”) whereupon CCM has granted Duopharma the license to use the trademarks in relation to the pharmaceutical, biopharmaceutical and healthcare products and services, food supplements and medicines manufactured, distributed, imported, exported, marketed and sold by Duopharma for a consideration of RM250,000.00 per annum. Duopharma had on 29 November 2019 entered into a Renewal of Trademarks License Agreement with the Company for a further one-year period commencing 1 January 2020 until 31 December 2020 for a cash consideration of RM250,000.00. h) Term Financing-i Commodity Murabahah of RM11.5 million and Trade Financing-i-Facilities of RM5.0 million entered into between CCM Polymers Sdn Bhd (“CCM Polymers”) a wholly owned subsidiary of CCM with OCBC Al-Amin Bank Berhad (“OCBC”) on 19 March 2018 to partly finance for the purchase of CCM Polymers’ double-storey office cum factory and annexed single-storey factory at Taman Industri Selaman, Seksyen 10, Bandar Baru Bangi, Selangor Darul Ehsan together with its fixtures and fittings at a purchase price of RM20.8 million. MATERIAL LITIGATION, CLAIMS OR ARBITRATION Save as disclosed below, neither CCM nor any of its subsidiaries are engaged in any material litigation, claims or arbitration proceedings, either as plaintiff or defendant, which will have a material effect on the financial position of the CCM Group and the Board is not aware of any proceedings pending or threatened against CCM and/or its subsidiaries or any facts likely to give rise to any proceedings which might materially affect the financial position and business of the CCM Group: PT CCM Indonesia, a subsidiary of CCM, had on 23 September 2014 submitted five (5) letters of appeal to the Indonesian Tax Court against the objection decision of the Director-General of Tax, Indonesia on several tax adjustments/corrections made by the tax auditor totaling IDR36.1 billion (or equivalent to RM9.7 million) in aggregate. On 13 December 2018, PT CCMI received official notification on the judgement in favour of PTCCMI’s appeals to the Tax Court of Indonesia. These successful appeals relate to several tax adjustment/corrections made by the tax auditor amounting to IDR34.06 billion (equivalent to approximately RM9.78 million) representing 99.25% of the total appealed amount of IDR34.31 billion (equivalent to approximately RM9.85 million). REVALUATION POLICY OF LANDED PROPERTY Land & Buildings are stated at cost or Director’s valuation based on open market valuations by professional firms of valuer less accumulated depreciation. Additions to land and buildings subsequent to the valuations are stated at cost. RECURRENT RELATED PARTY TRANSACTION OF A REVENUE OR TRADING NATURE The Company has not sought any mandate for recurrent related party transaction of a revenue or trading nature at the last Annual General Meeting (“AGM”) of the Company held on 28 May 2019 and the Company does not anticipate any future recurrent related party transaction of a revenue or trading nature to be entered from the date of the forthcoming AGM until the next AGM of the Company. BUSINESS OVERVIEW FINANCIAL STATEMENTS OTHER INFORMATION GOVERNANCE 109 ANNUAL REPORT 2019