MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 315 MISC BERHAD ANNUAL REPORT 2018 314 33. RELATED PARTY DISCLOSURES (CONT'D.) Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 (d) Purchase of service for repairs, conversion of ships, drydocking and fabrication from a subsidiary - - (19,090) (82,689) (e) Compensation received on termination of contract from a fellow subsidiary - 144,978 - 144,978 (f) Government of Malaysia's related entities (i) Provision of shipping and shipping related services Freight revenue 15,867 23,848 - - (ii) Purchase of goods and services Utilities (25,118) (36,999) (5,131) (4,543) (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. The remuneration of directors and other members of key management during the financial year were as follows: Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Directors Directors' remuneration (Note 7) 3,995 3,719 3,477 3,075 Other key management personnel Salaries and benefits 22,168 25,028 6,782 7,629 Defined contribution plans 2,422 2,434 1,629 1,683 24,590 27,462 8,411 9,312 Total compensation of KMP 28,585 31,181 11,888 12,387 34. COMMITMENTS (a) Capital commitments Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Capital expenditure Approved and contracted for: Ships, offshore floating assets and other property, plant and equipment 2,782,575 3,128,691 158,665 1,129,195 Information and communication technology 9,725 13,390 8,150 8,839 2,792,300 3,142,081 166,815 1,138,034 Approved but not contracted for: Ships, offshore floating assets and other property, plant and equipment 930,613 661,820 123,460 432,855 Information and communication technology 9,321 27,756 2,618 24,221 939,934 689,576 126,078 457,076 (b) Non-cancellable operating lease commitments - Group and Corporation as lessee Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Future minimum rentals payable: Not later than 1 year 489,509 599,947 15,990 15,784 Later than 1 year and not later than 5 years 637,057 1,184,908 - - Later than 5 years 29,711 414,206 - - 1,156,277 2,199,061 15,990 15,784 Operating lease payments mainly represent long-term lease agreements for charter ships and rentals payable for the use of premises.