EXCEL FORCE MSC BERHAD Annual Report 2018

105 ANNUAL REPORT 2018 30. Related Party Disclosures (cont’d) (c) Compensation of key management personnel (cont’d) Remuneration of Directors and other members of key management are as follows: Group Company 2018 2017 2018 2017 RM RM RM RM Salaries, fees and other emoluments 2,357,993 2,654,635 2,357,993 2,654,635 Defined contribution plans 307,677 278,439 307,677 278,439 Social security contributions 7,319 6,974 7,319 6,974 2,672,989 2,940,048 2,672,989 2,940,048 31. Segment Information The Company and its subsidiary companies are principally engaged in the development, provision and maintenance of computer software application solutions for the financial services industry. The Company 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. Capital expenditure consist of addition of property, plant and equipment and capital work-in-progress. Notes To The Financial Statements 31 December 2018 (cont’d)