| Transactions with Related Parties |
| 21 | Transactions with Related Parties |
Related parties represent associated
companies, shareholders, directors and key management personnel of the Group, and entities controlled, jointly controlled or significantly
influenced by such parties. Pricing policies and terms of these transactions are approved by the Group’s audit committee.
Transactions with related parties
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Interest on BIA litigation | |
| 5,285,479 | | |
| Nil | |
| Key management personnel remuneration | |
| 1,132,856 | | |
| 1,184,300 | |
| End of service benefits expense for key management | |
| 44,759 | | |
| 202,295 | |
| Transactions with related parties (corporate service fees, professional services etc.) | |
| 207,711 | | |
| 182,799 | |
Related party balances as at the year-end are classified as under:
| Related Party | | Classification | | 2024 | | | 2023 | | | BPGIC Holdings Limited | | Shareholder’s account (Equity) | | | 70,391,942 | | | | 70,391,787 | | | | | Due from related parties (shareholder) | | | 348,665 | | | | 210,322 | | | HBS Investments LP | | Due from related parties (shareholder) | | | 24,844 | | | | 11,430 | | | H Capital International LP | | Due from related parties (shareholder) | | | 24,457 | | | | 11,043 | | | O2 Investments Limited as GP | | Due from related parties (shareholder) | | | 21,398 | | | | 10,851 | | | SBD International LP | | Due from related parties (shareholder) | | | 64,919 | | | | 51,067 | | | SD Holding Limited as GP | | Due from related parties (shareholder) | | | 29,557 | | | | 22,118 | | | Gyan Investments Ltd | | Due from related parties (shareholder) | | | 21,153 | | | | 10,606 | | | End of service benefits for key management personnel | | Employees’ end of service benefits | | | 51,866 | | | | 46,234 | | | Salary payables for key management personnel | | Trade and accounts payables | | | 93,750 | | | | 150,814 | | | Brooge International Advisory LLC | | Other payable (other related parties) | | | 135,285,479 | | | | 130,000,000 | |
BIA
In order to determine whether there exists a related party relationship
with BIA in accordance to Paragraph (9) of International Accounting Standards (IAS 24). The Group considered the following:
| ● | Clause
3.4(v) of the Audit Committee (the “Committee”) Charter requires that the Committee review and approve all related-party
transactions, defined as those transactions required to be disclosed under Item 7(b) of Form 20-F and NASDAQ Corporate Governance Rule
5630. |
| ● | Clause
3 of the Related Party Transactions Policy of the Company states that, it is the responsibility of the Audit Committee to administer
the Related Party Transactions Policy. |
| ● | Commercial
license of BIA with issue date of February 11, 2019, which mentions Mrs. Hind (considered as one of the UBO for the Company) as a Partner
in BIA. |
| ● | Commercial
license of BIA with issue date of February 10, 2020, which reflects the change in ownership of BIA, with Mrs. Hind now being removed
as a Partner in BIA. |
| ● | Commercial
license of BIA with issue date of April 12, 2021, which does not mention Mrs. Hind as a Partner for BIA. |
It is noted that Mrs. Hind has left
BIA in her capacity as a shareholder somewhere between November 2019 and February 2020.
The Committee has decided to be conservative
on the BIA relationship and hence has considered BIA to be a related party throughout the years until further supporting documentation
is obtained to prove otherwise.
|