Megachem Limited Annual Report 2015 125 Notes to the Financial Statements 31 December 2015 29. Related party transactions (cont’d) 29B. Compensation of directors and key management: Group Company 2015 2014 2015 2014 $ $ $ $ Salaries and other short-term employee benefits of key management 4,324,253 4,156,691 2,642,028 2,533,043 Remuneration of directors of the Company 1,440,876 1,392,828 1,440,876 1,392,828 Fees to directors of the Company 146,000 146,000 146,000 146,000 Key management personnel are the directors and those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly. The above amounts for key management compensation are for all the directors and other key management personnel. 30. Financial information by segments Disclosure of information about operating segments, products and services, the geographical areas, and the major customers are made as required by FRS 108 Operating Segments. This disclosure standard has no impact on the reported results or financial position of the Group. Management has determined the operating segments based on the reports reviewed by the Executive Committee (“Exco”) that are used to make strategic decisions. The Exco comprises the Managing Director, the Executive Director, the Group General Manager, the Chief Financial Officer and the Group Finance Manager. The Exco considers the business from geographic segment perspective. The Group operates in four main geographical segments (Singapore, Malaysia, Indonesia and United Kingdom) by location of revenue and assets. Other geographical areas mainly comprise of China, the Philippines, Middle East, India, Vietnam and Australia, none of which constitute a separately, reportable segment. All geographic locations are engaged in the trading in chemical and chemical-related products. In addition, the segment in Singapore also derives revenue from blending. As the revenue and assets for blending becomes a significant portion of the Singapore segment, the Exco considers it beneficial to review it as a separate business segment from the distribution activities of the Group. The Exco assesses the performance of the operating segments based on net profit before tax. Inter-segment sales are measured on the basis that the entity actually used to price the transfers. Internal transfer pricing policies of the reporting entity are as far as practicable based on market prices. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. There are no customers with revenue transactions of over 10% of the Group revenue.
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