Related Party Transactions

Part A Related party transactions (RPT) are the transfer of resources, services or obligations between the entity and the related party, ie, members of the same group, affiliates or joint ventures (AASB 124, paragraph 9). RPT is a synergistic effect of various parts of the group, bringing healthy cost effectiveness and maximum profitability of the group. For parents, RPT can help them improve risk management and effectively manage subsidiaries (Basel, 1999). RPT can be based on relationships between parties through the existence of control, joint control or significant influence (AASB 124, paragraph 5).

• Relationship between the company and its affiliates. If there is a transaction with related parties, the management will have the opportunity to manipulate the financial statements illegally either individually or as a whole. What is of particular concern is an important transaction, which seems not to be negotiated fairly. • Whether a limited number of customers or suppliers and companies maintain an important business relationship. With this relationship, these customers or suppliers can impose additional external monitoring on the normal process of protecting their own interests, potentially reducing the risk of unauthorized financial reporting. In addition, companies may want to maintain and predict aggressive corporate ethics to further maintain a close relationship with key suppliers and customers. On the other hand, losses from major suppliers and customers can create incentives for fraudulent financial reporting.

In the Transmile scandal, it is clear that former CEO Gan Boon Aun manipulated transactions between related parties and clearly identified hidden conflicts of interest against counterfeit records. Related party transactions mean that the controlling shareholder or insider will affect our assets and, as a result, will become corporate governance and minority shareholders.

Related party transactions with Sears Holdings is part of the daily work of shared product procurement service. These transactions are carried at fair market prices or transaction amounts and transaction amounts are set and agreed by related parties. These balances are included in "Accounts payable and accrued liabilities" and "Accounts receivable in the consolidated statement of financial position". An important management staff is the person in charge of planning, directing, and managing corporate activities. We believe that the Board of Directors and the following predecessors and the current senior management are key management personnel.