Annual Report 2020

33. Capital management The Group and the Company define capital as the total equity and debt. The objective of the Group’s and the Company’s capital management is to maintain an optimal capital structure and ensuring funds availability to support business operations and maximises shareholders value. The Group and the Company monitor debts to equity ratio to ensure compliance with management policies as well as maintaining shareholders’ confidence in the management. 34. Related parties Identity of 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 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. 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. The Group and the Company have related party relationship with its subsidiaries, associates and Directors. Significant related party transactions Related party transactions have been entered into in the normal course of business under normal trade terms. The significant related party transactions of the Group and the Company are as follows: Group 2020 RM’000 2019 RM’000 With companies in which certain Directors and/or person(s) connected  to them have interests: Success Portfolio Sdn. Bhd.: Sales — (903) M.B. Agriculture (Sandakan) Sdn. Bhd.: Sales (7,921) (7,616) Purchases 413 550 M.B. Agriculture (Sabah) Sdn. Bhd.: Sales (16,784) (10,602) Acquisition of property, plant and equipment — 2,106 Arena Dijaya Sdn. Bhd.: Sales (3,578) (2,451) Annual Report | 2020 QL Resources Berhad 204 Notes To The Financial Statements