EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 102 notes to the financial statements 31 december 2019 (cont’d) 33. Related Party Disclosures (a) Identifying 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 or joint 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. The Company has controlling related party relationship with its direct subsidiary companies. Related parties of the Group include: (i) Direct subsidiary companies as disclosed in Note 9; 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 the Directors and certain members of the senior management of the Group. (b) Significant related party transactions Related party transactions have been entered into in the normal course of business under negotiated terms. In addition to the related party balances disclosed elsewhere in the financial statements, the significant related party transactions of the Group and of the Company are as follows: Group Company 2019 2018 2019 2018 RM RM RM RM Transactions with a subsidiary company Application services rendered - - 327,540 317,446 Management fee income - - 81,600 81,600 Interest receivable - - 77,421 90,672 Transactions with a related party Rental paid/payable 363,074 363,074 363,074 363,074 (c) Compensation of key management personnel Remuneration of Directors and other members of key management are as follows: Group Company 2019 2018 2019 2018 RM RM RM RM Salaries, and other emoluments 1,920,843 1,961,993 1,920,843 1,961,993 Fees 353,935 396,000 353,935 396,000 Defined contribution plans 245,881 307,677 245,881 307,677 Social security contributions 7,733 7,319 7,733 7,319 2,528,392 2,672,989 2,528,392 2,672,989