Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (cont’d) E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 93 29. EMPLOYEE BENEFITS Group Company 2015 2014 2015 2014 RM RM RM RM Wages, salaries and bonuses 8,675,677 7,846,109 6,407,604 6,465,180 Contributions to defined contribution plan 988,011 895,313 745,040 744,528 Social security contributions 60,789 58,012 42,997 46,966 Other employee benefits 320,912 225,278 256,559 188,480 10,045,389 9,024,712 7,452,200 7,445,154 Included in employee benefits of the Group and of the Company are Executive Directors’ remuneration amounting to RM1,490,986 (2014: RM1,247,914) and RM1,013,327 (2014: RM996,172) respectively. 30. RELATED PARTY DISCLOSURE (a) Identities of related parties Parties are considered to be related to the Group if the Group 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 and the party are subject to common control or common significant influence. Related parties could be individuals or other entities. The Company has controlling related party relationship with its direct subsidiaries. Related parties of the Group include: (i) Direct subsidiaries as disclosed in Note 11 to the financial statements; and (ii) Keymanagement personnel who are 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 Company, and certain members of the senior management of the Group. (b) Significant related party transactions In addition to the transactions detailed elsewhere in the financial statements, the Company had the following transactions with related parties during the financial year: Company 2015 2014 RM RM Subsidiary, Insage (MSC) Sdn. Bhd.: Cost of services received 321,523 330,120 Subsidiary, Capital Market Risk Advisor Sdn. Bhd.: Cost of services received 343,358 287,903 The related party transactions described above were carried out based on negotiated terms and conditions and mutually agreed with the related parties. Information regarding outstanding balances arising from related party transactions as at 31 December 2015 is disclosed in Notes 13 and 20 to the financial statements.