129 / 168
Datasonic Group Berhad
(Company No. 809759-X)
127
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
41. CONTINGENT LIABILITIES (CONT’D)
(b) Litigation
A subsidiary, DCSB filed a writ of summons on 11 January 2011 against Huawei Technologies
(M) Sdn. Bhd. ("Huawei") for breach of a partnership agreement which DCSB is claiming for an
undetermined amount based on accounts, interests and costs ("Datasonic Action").
Huawei, in return filed a counterclaim for the amount of RM30.00 million inter-alia, claiming for
loss of reputation ("Counterclaim") due to the Datasonic Action.
On 7 October 2015, the Court of Appeal upheld the decision of the High Court and dismissed
the appeal and cross-appeals of the claim and counterclaim. The management decided not
to pursue the matter.
42. RELATED PARTY DISCLOSURES
The transactions of the Company with its related parties are as follows:
Company
15-month
Year
period
1.4.2015
1.1.2014
to
to
31.3.2016
31.3.2015
RM’000
RM’000
Subsidiaries
Management services fees
10,932
14,262
Dividend income
45,000
102,000
Equipment transferred from
–
13
Equipment transferred to
11
–
Rental income
1,252
–
43. OPERATING SEGMENTS
Operating segments are prepared in a manner consistent with the internal reporting provided to
the chief operating decision makers in order to allocate resources to segments and to assess their
performance. For management purposes, the Group is organised into business units based on the
products and services provided.
The Group is organised into three main reportable segments as follows:-
Customised smart card solutions (“CSCS”) - provision of large scale customised software and hardware
systems for secure ID, total smart card solutions and ICT project management.
Manufacturing (“MA”) - manufacturing of cards.
Investment holding (“IH”) - investment holding and provision of management services to the group
of companies.
(a) The chief operating decision makers assess the performance of the reportable segments based
on their profit before interest expense and taxation. The accounting policies of the reportable
segments are the same as the Group’s accounting policies.