ANNUAL REPORT 2015 |
175
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
35. OPERATING SEGMENTS
Bonia Corporation Berhad and its subsidiaries are principally engaged in designing, manufacturing, marketing, retailing,
wholesaling and franchising of fashionable leather goods, accessories and apparel for the local and overseas markets, property
development and investment holding.
The Group has arrived at three (3) reportable operating segments that are organised and managed separately according to
the nature of products and services and specific expertise, which requires different business and marketing strategies. The
reportable segments are summarised as follows:
Retailing
Designing, promoting and marketing of fashionable apparels, footwear,
accessories and leather goods.
Manufacturing
Manufacturing and marketing of fashionable leather goods.
Investment and property development
Investment holding and rental and development of commercial properties.
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 not including non-recurring losses,
such as impairment of goodwill.
Inter-segment revenue is priced along the similar 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 assets used primarily for corporate purposes.
Segment liabilities exclude tax liabilities. Even though loans and borrowings arise from financing activities rather than
operating activities, they are allocated to the segments based on relevant factors (e.g. funding requirement). Details are
provided in the reconciliations from segment assets and liabilities to the position of the Group.
Investment
and property
Retailing Manufacturing development
Total
2015
RM’000
RM’000
RM’000
RM’000
Revenue
Total revenue
694,165
24,225
54,431
772,821
Inter-segment revenue
-
(24,167)
(53,325)
(77,492)
Revenue from external customers
694,165
58
1,106
695,329
Interest income
464
5
560
1,029
Interest expense
(1,726)
(509)
(4,255)
(6,490)
Net interest expense
(1,262)
(504)
(3,695)
(5,461)
Depreciation of property, plant and equipment
(19,095)
(564)
(2,246)
(21,905)
Amortisation of trademarks
(512)
-
-
(512)
Segment profit before tax
78,925
792
12,732
92,449
Share of losses of associates
-
-
(209)
(209)
Tax expense
(20,443)
(336)
(1,131)
(21,910)
