DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 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 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 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 (6,597,719) 51,360,643 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 2019 2018 RM RM Transactions with subsidiaries Management fee received/receivables 2,825,000 11,308,373 Interest income 824,043 2,406,727 06 FINANCIAL STATEMENTS DESTINI BERHAD 178