EXCEL FORCE MSC BERHAD Annual Report 2020

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 104 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 33. 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 9; (ii) Company in which a Director of the Company has substantial financial interest; and (iii) Keymanagement personnel who are defined as those persons having authority and responsibility for planning, directing and controlling the activitiesof theGroup eitherdirectlyor indirectly. The keymanagement personnel include the Directors 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 2020 2019 2020 2019 RM RM RM RM Transactions with a subsidiary company Application services rendered - - 313,800 327,540 Management fee income - - 81,600 81,600 Interest income receivable - - 49,531 77,421 Transactions with a related party Lease expenses paid/payable 363,074 363,074 363,074 363,074 Transactions with Directors Consultancy fee paid/payable 180,000 157,600 180,000 157,600