Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 94 Notes to the Financial Statements 31 December 2016 (cont’d) 29. 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) Key management 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 2016 2015 RM RM Subsidiary, Insage (MSC) Sdn. Bhd.: Cost of services received 317,400 321,523 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 2016 is disclosed in Notes 12 and 19 to the financial statements. (c) Compensation of key management personnel Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the entity, directly and indirectly, including any Director (whether executive or otherwise) of the Group and the Company. The remuneration of the Directors and other key management personnel during the financial year were as follows: Group Company 2016 2015 2016 2015 RM RM RM RM Short term employee benefits 1,818,879 2,192,144 1,366,611 1,495,936 Contributions to defined contribution plan 239,587 286,751 186,187 211,683 2,058,466 2,478,895 1,552,798 1,707,619