Wah Seong Corporation Berhad Annual Report 2019

170 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 38 RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES (CONTINUED) Net advances from subsidiaries Other bank borrowings Total liabilities from financing activities Company RM’000 RM’000 RM’000 2019 At 1 January 3,853 170,011 173,864 Cash flows 13,110 (17,367) (4,257) Effect of exchange rate changes - (427) (427) At 31 December 16,963 152,217 169,180 2018 At 1 January - 134,167 134,167 Cash flows 3,853 34,921 38,774 Effect of exchange rate changes - 923 923 At 31 December 3,853 170,011 173,864 39 SIGNIFICANT RELATED PARTY DISCLOSURES 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 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. Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significant related party transactions. The transactions described below were carried out on agreed terms. Group 2019 2018 RM’000 RM’000 Significant transactions with companies in which a Director of the Company, Dato’ Seri Robert Tan Chung Meng, has interest Rental of premises paid/payable 1,041 1,031 Significant transactions with an associate Lease rental income of equipment 10,094 10,307