EXCEL FORCE MSC BERHAD Annual Report 2018

104 ANNUAL REPORT 2018 29. Reconciliation of Liabilities Arising from Financing Activities The table below show the details changes in the liabilities of the Group and of the Company arising from financing activities: At Financing At 1 January cash flow * 31 December RM RM RM Group and Company 2018 Term loan 4,240,002 (4,240,002) - 2017 Term loan 5,221,110 (981,108) 4,240,002 * Financing cash flow represents repayment of term loan in the statements of cash flows. 30. 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. Related parties may be individuals or other entities. The Company has controlling related party relationship with its direct subsidiary companies. Related parties of the Group include: (i) Direct subsidiary companies as disclosed in Note 8; and (ii) Key management personnel who are 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 Company, and certain members of the senior management 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: Group Company 2018 2017 2018 2017 RM RM RM RM Transactions with a subsidiary company Application services rendered - - 317,446 317,400 Management fee income - - 81,600 87,360 Transactions with a related party Rental paid/payable 363,074 30,256 363,074 30,256 Notes To The Financial Statements 31 December 2018 (cont’d)