NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
(cont’d)
E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 4
92
31. OPERATING SEGMENTS
Excel Force and its subsidiaries are principally engaged in the development, provision and maintenance
of computer software application solutions for the financial services industry.
Excel Force has arrived at three (3) reportable segments that are organised and managed separately
according to the nature of products and services, which requires different business and marketing
strategies. The reportable segments are summarised as follows:
(a) Application solutions division
-
Sales of software application and product on an outright purchase basis
(b) Maintenance services division
-
Provision of maintenance services
(c) Application services provider division
-
Income from outsourcing services charge which is volume and transaction based
The accounting policies of operating segments are the same as those described in the summary of
significant accounting policies.
The Group evaluates performance on the basis of profit or loss from operations before tax. Group income
taxes are managed on a group basis and are not allocated to operating segments.
Inter-segment revenue is priced along the same lines as sales to external customers and is eliminated in the
consolidated financial statements. These policies have been applied consistently throughout the current
and previous financial years.
Segment assets exclude tax assets and segment liabilities exclude tax liabilities. Details are provided in the
reconciliations from segment assets and liabilities to the Group position.
2014
Application
solutions
division
Maintenance
services
division
Application
services
provider
division
Total
RM
RM
RM
RM
Revenue
Total revenue
4,244,204
1,702,896
16,544,984
22,492,084
Inter-segment revenue
-
-
(618,023)
(618,023)
Revenue from external customers
4,244,204
1,702,896
15,926,961
21,874,061
Results
Segment results
2,197,636
1,024,440
6,793,704
10,015,780
Finance costs
-
-
(9,792)
(9,792)
Interest income from short term funds
and deposits with licensed banks
61,977
24,867
232,578
319,422
Profit before tax
10,325,410
Income tax expense
(1,481,398)
Profit for the financial year
8,844,012
