PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 140 30. RELATED PARTY DISCLOSURES (CONT’D) (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 Directors during the financial year was as follows: Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Directors - fees 329 211 254 211 - remuneration 7,657 6,219 - - 7,986 6,430 254 211 (d) Transactions with corporation in which a Director of an associate (formerly a subsidiary) has interest The aggregate value of transactions and outstanding balances relating to corporation in which a Director of an associate (formerly a subsidiary) has interest were as follows: Transaction value Balance for the year ended outstanding as at 31 December 31 December 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Shann Australia Pty. Ltd. - Sales 1,496 1,665 407 300 The Group sells goods to Shann Australia Pty. Ltd., a company that owns 3.27% (2016: 5.96%) of Furnitech Components (Vietnam) Co., Ltd., an associate (formerly a subsidiary) of the Group. The related party transactions described above were carried out based on negotiated terms and conditions and mutually agreed with related parties. 31. OPERATING SEGMENTS PRG Holdings Berhad and its subsidiaries are principally engaged in the manufacturing and sale and marketing of webbings, yarn, furniture components, rubber strips and fabrics as well as being involved in property development and construction. The Group has arrived at two (2) reportable segments that are organised and managed separately according to the nature of products and services, specific expertise and technologies requirements and which requires different business and marketing strategies. The reportable segments are summarised as follows: (i) Manufacturing The manufacture and sale and marketing of rubber strips and sheets and narrow elastic fabrics, upholstery webbings, covered elastic yarn, rigid webbings, safety webbings, metal components for furniture and trading. (ii) Property development and construction Development and construction of residential and commercial properties. N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( c o n t ’ d )