Related Party Transactions


As of 30 September 2020, the transactions with related parties are as follows.

Name or company name of related party Attributes of related party Voting right ratio Outline of trade with related party Contents of trading, terms and conditions, policy to determine terms and conditions Trading amount (MMK) Item Balance at the end of FY (MMK)

U Win Aung

Shareholder and director (Chairman) of the Company; director of UIG; and shareholder and director of MB

41.53% of the Company; 30% of MB

(Note: The 30% of MB held by U Win Aung will be transferred to the Company by listing or shortly after listing)

Payment of amount to be made to related party (U Win Aung) by UIG at the end of previous FY (as at 1 October 2019)

Outstanding payables

1,447,285,987

Amount due from related parties (Current assets)

1,584,888,680

UIG advanced funds to U Win Aung for hotel construction and expansion.

Fund provision

(Note 1)

Construction or renovation works delivered to the respective hotel properties  (Note 1)

5,005,826,699

2,088,854,723

UIG purchased land and building from U Win Aung

Accrual of unpaid amount

(Note 3)

1,517,861,972

UIG leased hotel land and building from U Win Aung

Payment of rental fee

Accrual of unpaid rental fee

(Note 4)

251,778,675

66,000,000

MB provided loan to U Win Aung for investment in hotel assets

Repayment of loan

(Note 2)

110,144,195

 

771,735,278

U Khin Zaw

Shareholder of MB

19% of MB

MB provided loan to U Khin Zaw for his business

       

Awinka Holding Company Limited

Controlled 100% by U Win Aung, who is a shareholder and director of the Company, and his spouse Daw Nay Myat Thu Aung

MB provided loan to Awinka for its business

       

AIC

Controlled 100% by U Win Aung, who is a shareholder and director of the Company, and his spouse Daw Nay Myat Thu Aung

37.72% of the Company

Payment of amount to be made to related party (AIC) by UIG at the end of previous FY (as at 1 October 2019)

Outstanding payables

16,446,009

Amount due to related parties (Current Liabilities)

32,996,912

     

UIG made erroneous payment to AIC

Erroneous payment of rental fee

12,107,981

   
     

UIG leased hotel land and building from AIC

Accrual of unpaid rental fee (Note 7)

18,000,000

   
     

UIG made erroneous payment to AIC

Erroneous payment of income tax by UIG on behalf of AIC

Erroneous accounting of the transfer of funds in the bank account for Amata Garden Resort (Inle Lake) to UIG as part of the purchase of the hotel business 

27,104,893

   
     

UIG purchased the assets, liabilities, existing projects and right to operate the hotel business of Amata Garden Resort (Inle Lake) from AIC

Gradual write off of payable with respect to land and building purchased in the past

(Note 8)

1,000,000,000

Other non-current liabilities

2,000,000,000

(Note 1) Regarding the fund provision to U Win Aung for hotel construction and expansion under the construction agreement, the entire works are to be completed within a period of two years
(Note 2) Regarding the purchase of land and building from U Win Aung, the price was set as per the book value of those properties. The repayment period was not determined therein.
(Note 3) Regarding the fund provision to U Win Aung for hotel construction and expansion under the construction agreement, the entire works are to be completed within a period of two years
(Note 4) Regarding the rental of land and building from U Win Aung, the rental fee was set based on prevailing market prices for similar transactions in the vicinity of the relevant property. UIG has not periodically paid the rental fee as the payment period has not been determined and the amount corresponding to the unpaid rental fee has been recorded as a payable.
(Note 5) Regarding the loan provision to U Khin Zaw, no interest rate was set, and no conditions of repayment such as the repayment period were provided for therein. The Company had not secured any collateral for this loan. This transaction is to be terminated and the loan fully repaid within one year after the listing date.
(Note 6) Regarding the loan provision to Awinka Holding Company Limited, no interest rate was set, and no conditions of repayment such as the repayment period were provided for therein. The Company had not secured any collateral for this loan. This transaction is to be terminated and the loan fully repaid within one year after the listing date.
(Note 7) Regarding the rental of land and building from AIC, the rental fee was set based on prevailing market prices for similar transactions in the vicinity of the relevant property. UIG has not periodically paid the rental fee as the payment period has not been determined and the amount corresponding to the unpaid rental fee has been recorded as a payable.
(Note 8) On 1 April 2018, UIG purchased the assets, liabilities, existing projects and right to operate the hotel business of Amata Garden Resort (Inle Lake) from AIC. The valuation of such assets, liabilities, existing projects and right to operate the hotel business was based on a valuation conducted by an internationally well-recognized third-party valuer for real estate property in hospitality business and was set as per the book value of those properties at a value of 3,000,000,000 Kyats. The schedule for the gradual write off of payable has not been fixed but is anticipated to be totally written off within the next 5 years. As of 30 September 2020, 1,000,000,000 Kyats has been written off.