Yinson Annual Report 2020

324 Notes to the financial statements (cont’d) For the financial year ended 31 January 2020 Yinson Holdings Berhad SECTION 7 ACCOUNTABILITY 48. Subsequent events (continued) (c) (continued) GMOS is claiming the following reliefs from the Defendants on a joint and several basis: (continued) (viii) Interest of 5% per annum on the sum of RM 74,800,000.00 from 18 February 2014 until the date of the judgement herein; (ix) Interest of 5% per annum on the judgement sum from the date of judgement until the date of full realisation of the judgement sum; (x) Costs; (xi) Further and other relief as against either or all the Defendants which the Court deems fit and proper. The Company has since engaged Counsel to defend GMOS’s alleged claims. Counsel is of the view that the claims are devoid of merit and the Company will defend the alleged claims rigorously. In this regard, at this juncture, the Company is not able to ascertain the financial impact arising from the claims. The claims, however, are not expected to have any material operational impact on the Company. (d) On 16 March 2020, PetroVietnam Technical Services Corporation (“PTSC”) entered into a Bareboat Charter Contract (“BBC Charter Contract”) with PTSC Asia Pacific Pte Ltd (“PTSC AP”), a joint venture of the Company. The BBC Charter Contract shall take effect retrospectively and shall commence from 1 July 2017 to 30 June 2021. PTSC and PTSC AP (“Parties”) shall have the right to terminate the BBC Charter Contract subject to a 90-day notice period. Subject to the mutual agreement of the Parties, the BBC Charter Contract may be further extended thereafter. The value of the BBC Charter Contract is estimated to be USD 122.87 million (equivalent to approximately RM 528.34 million). (e) On 23 March 2020, Yinson Production Pte. Ltd., Yinson Boronia Production B.V. and Yinson Boronia Servicos de Operacao LTDA, each an indirect wholly owned subsidiary of the Group, have entered into the contracts with Petróleo Brasileiro S.A. for the provision of: (i) a floating production storage and offloading facility (“Marlim 2 FPSO”) to the Marlim Field located offshore Brazil in the north-eastern part of the Campos Basin; and (ii) operation and maintenance services during the charter phase of Marlim 2 FPSO. The definitive contracts signature is part of the previous binding agreement between the parties as consequence of the binding Letter of Intent signed on 11 October 2019. (f) On 26 March 2020, the Company has entered into multiple agreements to acquire a 37.5% equity interest in Rising Sun Energy Private Limited (“RSE”), an India-incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan, India. The Company will pay INR554 million (RM32 million) for the stake, subject to closing conditions, while also providing funding of INR600 million (RM35 million) to repay certain outstanding liabilities of RSE. The agreements were entered into through Yinson Renewables (S) Pte. Ltd., a wholly owned subsidiary of the Group. The two adjoining solar plants have a combined generation capacity of 140MW (AC rated), and achieved their scheduled commissioning dates in 2017. 25-year Power Purchase Agreements, expiring in 2042, have been signed with NTPC Limited, India’s largest power utility, majority owned by the Government of India.