GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 125 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 29. RELATED PARTIES DISCLOSURES (cont’d) (b) In addition to the transactions and balances detailed elsewhere in the financial statements, the Group and the Company had the following transactions with related parties during the financial year: Group Company 2017 2016 2017 2016 RM RM RM RM Subsidiaries: Sales of other hardware - - 1,779,608 1,635,379 Rental and license fees - - 4,288,935 2,494,493 Hosting services - - 594,000 402,000 Purchase of goods and services - - 3,570,000 1,210,113 Management fees - - 6,149,256 4,952,068 Share options granted under ESS - - - 17,429 Related parties: Rental expenses 550,736 494,736 - - The related party transactions were carried out on terms and conditions agreed between parties. (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 and other key management personnel during the financial year was as follows: Group and Company 2017 2016 RM RM Short term employee benefits 3,687,046 2,148,750 Contributions to defined contribution plans 504,194 260,731 Share options granted under ESS 239,247 101,153 4,430,487 2,510,634 Executive Directors of the Group and of the Company and other key management personnel have been granted the following number of options under the Executives’ Share Scheme (“ESS”) during the financial year: Group and Company 2017 2016 As at 1 January 3,800,000 5,900,000 Exercised (3,800,000) (2,100,000) As at 31 December - 3,800,000 The terms and conditions of the share options are detailed in Note 21 to the financial statements.