161 GOVERNANCE | OTHER COMPLIANCE INFORMATION Company Level No. Description RM’000 1. Tax Compliance 49 2. Tax Consultancy 9 3. Financial Advisory 42 3. MATERIAL CONTRACTS INVOLVING DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST During FYE 2024, none of the Company and/or its subsidiaries have entered into material contracts (not being contracts entered into in the ordinary course of business) involving interests of Directors and Major Shareholders of Yinson. 4. MATERIAL LITIGATION A petition by Rising Sun Energy (K) Private Limited (“RSEK”), a subsidiary of YHB Group held via YR Nokh Pte Ltd, against NTPC Limited (“NTPC”) and Chhattisgarh State Power Distribution Company Limited (“Chhattisgarh”) RSEK entered into a power purchase agreement dated 30 March 2021 (“the PPA”) with NTPC whereby RSEK was commissioned to develop a solar power generating system for the supply of power to Chhattisgarh. Due to various changes in law resulting in increase in the rate of goods and services tax and imposition of basic customs duty for which RSEK under the PPA is entitled to compensation, RSEK filed a petition dated 14 July 2022 to Central Electricity Regulatory Commission (“CERC”) at New Delhi, India, the mandated body to decide on such matter, seeking for an order for compensation amounting to Indian Rupee 3,557,805,223 (approximately RM187.0 million). The first hearing before the CERC was heard on 15 December 2022 and NTPC and Chhattisgarh submitted their responses to CERC including details of the claim on 21 March 2023. Subsequently, NTPC, Chhattisgarh and RSEK had filed their written submissions on 14 January 2024, 19 February 2024 and 23 February 2024 respectively. On 19 May 2024, CERC disposed the petition by RSEK vide an order stating among others, that RSEK is entitled to compensation on account of the change in law corresponding to the mutually agreed project capacity under the PPA and carrying cost from the date when the actual payment was made to the authorities to the date of issuance of the order. The parties are to carry out reconciliation of additional expenditure on account of the change in law along with carrying cost. 5. RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE All recurrent related party transactions (“RRPTs”) are dealt with in accordance with the Bursa Securities MMLR and a summary of RRPT Register is tabled for AC’s review and monitoring on a quarterly basis. All relevant processes and procedures are for ensuring that all related party transactions are monitored and conducted in a manner that is fair and at arms’ length. The Directors and Major Shareholders who have interests in a transaction will abstain from deliberation and voting on said transaction at Board meetings and general meetings, if required. The details of the RRPTs conducted during FYE 2024 between the Company and/or its subsidiaries with related parties are disclosed on pg 293 of the Audited Financial Statements contained in the Integrated Annual Report 2024.
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