DESTINI Annual Report 2018

38. 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 At 31 December Company RM RM RM 2018 Term loans 57,947,662 (19,676,990) 38,270,672 Finance lease liabilities 10,700 (10,700) - Amount due to subsidiaries - 13,089,971 13,089,971 57,958,362 (19,687,690) 38,270,672 2017 Term loans 62,339,169 (4,391,507) 57,947,662 Finance lease liabilities 24,033 (13,333) 10,700 62,363,202 (4,404,840) 57,958,362 39. 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 2018 2017 RM RM Transactions with subsidiaries Management fee received/receivables 11,308,373 24,457,547 Interest income 2,406,727 2,939,096 DESTINI BERHAD ANNUAL REPORT 2018 183