MISC Annual Report 2019

34. CONTINGENT LIABILITIES Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Secured Bank guarantee extended to a third party 199 392 – – Unsecured Performance bond on contract and bank guarantees extended to third parties 411,271 204,305 2,513 347 The Corporation no longer discloses the corporate guarantees given to banks for credit facilities granted to subsidiaries as these would instead be accounted as financial liabilities if considered likely to crystalise. 35. SEGMENT INFORMATION (a) Business segments The operating segments of the Group are as follows: (i) LNG - provision of liquefied natural gas (“LNG”) carrier services; (ii) Petroleum - provision of petroleum tanker and chemical tanker services; (iii) Offshore - own, lease, operation and maintenance of offshore, floating, production and offloading terminals; (iv) Heavy Engineering - marine repair, marine conversion and engineering and construction works; and (v) Others - management of operation of ports and marine terminals, provision of marine support services and consulting services relating to marine matters, provision of ship management services, marine education and training, and other diversified businesses. Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment revenue, expenses and results include transfers between business segments. These transfers are eliminated on consolidation. 32. RELATED PARTY DISCLOSURES (CONT’D.) (g) Compensation of key management personnel (“KMP”) (cont’d.) The remuneration of directors and other members of key management during the financial year were as follows: Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Directors Directors’ remuneration (Note 7) 4,617 3,995 4,089 3,477 Other key management personnel Salaries and benefits 26,599 22,168 8,057 6,782 Defined contribution plans 2,618 2, 422 1,839 1,629 29,217 24,590 9,896 8,411 Total compensation of KMP 33,834 28,585 13,985 11,888 33. COMMITMENTS (a) Capital commitments Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Capital expenditure Approved and contracted for: Ships, offshore floating assets and other property, plant and equipment 4,102,834 2,782,575 1,654,503 158,665 Information and communication technology 9,857 9,725 7,359 8,150 Share of capital commitments of a joint venture 115,795 – – – 4,228,486 2,792,300 1,661,862 166,815 (b) Non-cancellable operating lease commitments - Group and Corporation as lessor Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Future minimum rentals receivable: Not later than 1 year 3,262,255 3,033,512 883,291 793,501 Later than 1 year and not later than 5 years 9,837,459 10,340,322 2,580,322 2,497,323 Later than 5 years 9,973,111 11,545,520 4,750,789 5,189,975 23,072,825 24,919,354 8,214,402 8,480,799 Operating lease income represent long-term lease arrangements with related and third parties for charter out of ships and offshore floating assets. NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 336 337