GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 164 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 32. 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 2019 2018 2019 2018 RM RM RM RM Subsidiaries: Sales of other hardware - - 9,467 171,154 Rental and license fees - - 8,738 6,953 Hosting services - - 594,000 594,000 Purchase of goods and services - - 1,006,137 - Management fees - - 8,519,413 6,911,133 Share options granted under ESS - - 954,112 643,848 Related parties: Rental expenses 560,736 560,736 - - 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 2019 2018 RM RM Short term employee benefits 4,635,846 4,031,834 Contributions to defined contribution plans 531,041 438,947 Share options granted under ESS 347,303 229,709 5,514,190 4,700,490 Other key management personnel have been granted the following number of options under the ESS during the financial year: Group and Company 2019 2018 As at 1 January 7,820,000 - Granted - 7,900,000 Resigned - - Exercised (975,500) (80,000) As at 31 December 6,844,500 7,820,000 The terms and conditions of the share options are detailed in Note 24 to the financial statements.