DESTINI AR 2017

38. Related Party Disclosures (Cont’d) (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: Company 2017 2016 RM RM Transactions with subsidiaries Management fee received/receivables 24,457,547 9,000,000 Interest income 2,939,096 263,014 (c) Compensation of key management personnel Remuneration of Directors and other members of key management personnel are as follows: Group Company 2017 2016 2017 2016 RM RM RM RM Short-term employees benefits - Salaries and other emoluments 2,886,749 1,971,036 1,942,620 1,250,643 - Fees 245,000 99,500 245,000 99,500 - Defined contribution plan 306,137 231,779 211,577 145,200 3,437,886 2,302,315 2,399,197 1,495,343 39. Segment Information The Group has three reportable segments, as described below, which are the Group’s strategic business units. For each of the strategic business units, the Group’s Chief Executive Officer reviews internal management reports at least on a quarterly basis. The following summary describes the main business segments and respective business activity of each segment of the Group’s reportable segments: Maintenance, repair, overhaul and training Maintenance, repair and overhaul of aviation, automobile and safety and tabular handling equipment and providing training for the use of safety equipment Marine construction Shipbuilding, and restoration and maintenance of vessels Recycling of waste Extraction and recycling of waste tires for the production of carbon black, diesel fuel and scrap metal Performance is measured based on segment profit before taxation, interest, depreciation and amortisation, as included in the internal management reports that are reviewed by the Group’s Chief Executive Officer, who is the Group’s chief operating decision maker. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. 158 DESTINI BERHAD Financial Statements Notes to the 31 December 2017