DESTINI Annual Report 2020

34. Reconciliation of Liabilities Arising from Financing Activities (Cont’d) The table below details changes in the liabilities of the Group and of the Company arising from financing activities, including both cash and non-cash changes: (Cont’d) At 1 January Financing cash flows (i) At 31 December Company RM RM RM 2020 Term loans 24,546,499 (8,390,320) 16,156,179 Amount due to subsidiaries 11,915,675 (10,525,791) 1,389,884 36,462,174 (18,916,111) 17,546,063 2019 Term loans 38,270,672 (13,724,173) 24,546,499 Amount due to subsidiaries 13,089,971 (1,174,296) 11,915,675 51,360,643 (14,898,469) 36,462,174 (i) The financing cash flows include the net amount of proceeds from or repayment of lease liabilities, term loans and subsidiaries in the statements of cash flows. 35. Related Party Disclosures (a) Identifying related parties For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control or joint control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel include all the Directors of the Group and certain members of senior management and chief executive officers of major subsidiaries of the Group. (b) Significant related party transactions Related party transactions have been entered into in the normal course of business under negotiated terms. In addition to the related party balances disclosed elsewhere in the financial statements, the significant related party transactions of the Group and of the Company are as follows: Company 2020 2019 RM RM Transactions with subsidiaries Management fee received/receivables - 2,825,000 ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 171