board of directors - Petron

18. RESERVES (Continued)The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 to frank up toapproximately RM194,548,000 of the retained profits as at December 31, 2001 if paid out asdividends. Additionally, subject to the approval of the tax authorities, the Company has a tax exemptaccount available to frank tax exempt dividends up to approximately RM206,000,000.19. CASH AND CASH EQUIVALENTS2001 2000RM'000 RM'000Cash and bank balances 10,896 15,869Bank overdrafts (20,797) (15,697)(9,901) 17220. RELATED PARTY RELATIONSHIPS AND TRANSACTIONSUltimate Holding Company and Related CompaniesThe Company is a subsidiary of ExxonMobil International Holdings Incorporated, which in turn is awholly owned subsidiary of Exxon Mobil Corporation. Both companies are incorporated in theUnited States of America. Exxon Mobil Corporation is regarded by the Directors as the ultimateholding company of the Company. Related companies are Exxon Mobil Corporation’s othersubsidiaries.In the normal course of business, the Company undertakes, on an arms-length basis, a variety oftransactions with these related companies.2001 2000RM'000 RM'000Purchases of crude oil from ExxonMobil Explorationand Production Malaysia Inc. (formerly known as EssoProduction Malaysia Inc.) 2,801,172 2,397,969Purchases of petroleum and other productsfrom ExxonMobil Asia Pacific Pte. Ltd. 580,178 815,826ANNUAL REPORT & ACCOUNTS 2001Sales of petroleum products to ExxonMobil BorneoSdn. Bhd. and ExxonMobil Malaysia Sdn. Bhd.(formerly known as Esso Borneo Sendirian Berhadand Mobil Oil Malaysia Sendirian Berhad, respectively)and ExxonMobil Asia Pacific Pte. Ltd. 1,320,557 746,399Central management, shared facilities and services costsfrom ExxonMobil Asia Pacific Pte. Ltd.,ExxonMobil Global Services Company andExxonMobil Exploration and Production Malaysia Inc.(formerly known as Esso Production Malaysia Inc.) 56,399 61,677At each year end, the amounts due to and from related companies are in relation to the above describedtransactions.In December 2001, the Company entered into a floating interest rate and fixed foreign exchange rateloan facility for an amount of U.S.$100 Million with ExxonMobil Services (Labuan) Limited, asubsidiary of Exxon Overseas Corporation. This facility will provide the Company with competitivefinancing from its major shareholder and will be used to fund the Company’s capital expendituresand to prepay higher cost borrowings. Subsequent to year end, the Company drew down U.S.$50Million (RM190 Million) of this loan facility in February 2002.ESSO MALAYSIA BERHAD36