MISC Annual Report 2019

31. CASH FLOWS FROM FINANCING ACTIVITIES Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Drawdown of term loans 5,388,187 2,575,438 – – Drawdown of revolving credits 187,111 2,866,251 – 743,109 Drawdown of loans from subsidiaries – – 859,944 1,169,933 Repayment of term loans (5,992,531) (3,413,483) – – Repayment of revolving credits (1,500) (931,911) – (121,028) Repayment of loan due to subsidiaries – – (2,093,029) (2,846,237) Dividends (Note 12) (1,339,123) (1,339,139) (1,339,123) (1,339,139) Dividends paid to minority shareholders of subsidiaries (3,000) (23,430) – – Interest paid (492,700) (442,724) (128,597) (197,113) Payment of lease liabilities (447,834) – (13,288) – Placement of cash pledged with bank - restricted (1,071,301) (113,697) – – Net cash used in financing activities (3,772,691) (822,695) (2,714,093) (2,590,475) 32. RELATED PARTY DISCLOSURES In addition to related party disclosures elsewhere in the financial statements, set out below are other significant related party transactions. The directors are of the opinion that, unless otherwise stated, the transactions below have been entered into in the normal course of business at terms agreed between the parties during the financial year. As the holding company is wholly owned by the MoF, the Group is deemed to be related to entities that are controlled, jointly controlled or significantly influenced by the Government of Malaysia. 32. RELATED PARTY DISCLOSURES (CONT’D.) Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 (a) Income from fellow subsidiaries Freight and charter hire revenue 2,006,230 2,042,158 676,772 616,194 Fabrication services 530,094 551,056 – – Finance lease income 355,117 340,836 – – Offshore, maintenance and manpower services 168,057 110,941 53,459 49,203 Marine and consultancy services 37,072 17,870 – – Sungai Udang Port management 33,755 33,238 – – (b) Purchase from fellow subsidiaries Purchase of bunkers, lubricants, spare parts and other materials (113,845) (103,425) (61,010) (33,557) Purchase of service for rental of premises (22,202) (22,760) (20,815) (21,306) Fees for representation in the Board of Directors* (528) (519) (528) (519) (c) Management fee from subsidiaries Fees for representation in the Board of Directors** – – 1,090 1,923 (d) Purchase of service for repairs, conversion of ships, drydocking and fabrication from a subsidiary – – (13,801) (19,090) (e) Purchase of ship operating and management services from a subsidiary – – (164,012) (131,461) (f) Government of Malaysia’s related entities (i) Provision of shipping and shipping related services Freight revenue 20,638 15,867 – – (ii) Purchase of goods and services Utilities (31,157) (25,118) (5,341) (5,131) (g) Compensation of key management personnel (“KMP”) KMP are defined as persons having authority and responsibility for planning, directing and controlling the activities of the Group and of the Corporation, directly or indirectly, including any director of the Group and of the Corporation. * Fees paid directly to PETRONAS in respect of directors who are appointees of the holding company. ** Fees received from subsidiaries in respect of directors who are appointees of the Corporation. NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 334 335