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136
SapuraCrest Petroleum Berhad
Annual Report 2010
noteS to the FinAnCiAl StAtementS
31 January 2010
34. RelAteD PARty DiSCloSuReS (Cont’D)
(b) Compensation of key management personnel
The remuneration of directors and other members of key management during the year are as follows:
group Company
2010 2009 2010 2009
Rm’000 Rm’000 Rm’000 Rm’000
Short term employee benefits 20,177 13,641 8,283 6,173
Contributions to defined contribution plan - EPF 2,542 1,776 1,231 911
Included in the total key management personnel compensation are:
group Company
2010 2009 2010 2009
Rm’000 Rm’000 Rm’000 Rm’000
Directors’ remuneration (Note 9) 7,463 6,328 2,395 1,729
Executive directors of the Group and the Company and other members of key management have exercised the following options
previously granted under the ESOS:
group and Company
2010 2009
’000 ’000
At 1 February 5,943 8,104
Exercised (5,943) (2,161)
At 31 January — 5,943
The share options were granted on the same terms and conditions as those offered to other employees of the Group (Note 25).
35. FinAnCiAl inStRumentS
(a) Financial risk management objectives and policies
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development
of the Group’s businesses whilst managing its interest rate, foreign exchange, liquidity and credit risks. The Group operates within
clearly defined guidelines approved by the Board and the Group’s policy is not to engage in speculative transactions.
(b) Credit risk
Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals and monitoring
procedures. Credit risks are minimised and monitored via strictly limiting the Group’s associations to business partners with high
creditworthiness. Credit approvals are performed in accordance to approved Limits of Authority. Trade receivables are monitored
on an ongoing basis via Group management reporting procedures.