Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 95 Notes to the Financial Statements 31 December 2016 (cont’d) 30. 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 fromoperations 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 of segment assets and liabilities to the Group position. Application Application Maintenance services solutions services provider 2016 division division division Total RM RM RM RM Revenue Total revenue 5,795,103 1,931,161 15,203,833 22,930,097 Inter-segment revenue (16,981) - (440,488) (457,469) Revenue from external customers 5,778,122 1,931,161 14,763,345 22,472,628 Results Segment results 1,574,109 991,585 3,938,787 6,504,481 Finance costs - - - - Interest income 120,852 40,391 308,783 470,026 Profit before tax 6,974,507 Income tax expense (1,580,672) Profit for the financial year 5,393,835