GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 140 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 31. 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 2018 2017 2018 2017 RM RM RM RM Subsidiaries: Sales of other hardware - - 171,154 1,779,608 Rental and license fees - - 6,953 4,288,935 Hosting services - - 594,000 594,000 Purchase of goods and services - - - 3,570,000 Management fees - - 6,911,133 6,149,256 Share options granted under ESS - - 643,848 - Related parties: Rental expenses 530,000 550,736 - - 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 of the Company. The remuneration of Directors and other key management personnel during the financial year was as follows: Group and Company 2018 2017 RM RM Short term employee benefits 4,031,834 3,687,046 Contributions to defined contribution plans 438,947 504,194 Share options granted under ESS 229,709 239,247 4,700,490 4,430,487