EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 103 notes to the financial statements 31 december 2019 (cont’d) 34. 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, capital work-in-progress and right-of-use assets. 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 solutions division Maintenance services division Application services provider division Total RM RM RM RM 2019 Revenue Total revenue 5,103,249 2,044,057 16,143,378 23,290,684 Inter-segment revenue - - (327,540) (327,540) Revenue from external customers 5,103,249 2,044,057 15,815,838 22,963,144 Results Segment results 1,519,265 608,527 4,708,459 6,836,251 Interest income 327,437 131,152 1,014,781 1,473,370 Finance cost (4,336) (1,737) (13,438) (19,511) Profit before tax 8,290,110 Taxation (1,818,660) Profit after tax 6,471,450 Other comprehensive loss (26,790) 6,444,660 Assets and liabilities Segment assets 22,541,355 9,028,722 69,859,501 101,429,578 Segment liabilities 1,075,431 430,753 3,332,943 4,839,127