161
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
35. ACQUISITION AND DISPOSAL OF SUBSIDIARIES (continued)
(b)
On 31 March 2016, the Company had disposed its 100% equity interest (comprising 100,000 ordinary shares of RM1.00 each) in a
wholly-owned subsidiary, MCD for a cash consideration of RM60,000.
The effect of disposal of MCD on the financial position of the Group and of the Company is analysed as follows:
Group
RM’000
Company
RM’000
Cost of investment
-
100
Other receivables
60
-
Current tax assets
34
-
Cash and bank balances
2
-
Net assets up to date of disposal
96
100
Net proceeds from disposal
60
60
Net loss on disposal of subsidiary
36
40
The net cash inflow from the disposal is analysed as below:
Group
RM’000
Cash considerations
60
Cash and balances disposed of
(2)
58
36. 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.
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.
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.
