PRG Holdings Berhad Annual Report 2017

• Annual Report 2017 141 31. OPERATING SEGMENTS (CONT’D) Other operating segments that do not constitute reportable segments comprise operations related to investment holding. During the financial year, the Group has changed its basis of segmentation for investment holding companies. The segmentation for the respective investment holding companies will be determined by the segment of its respective subsidiaries. The above change is in line with the manner the internal management reporting and operating results were reviewed by the Group’s management to make decisions about the resources to be allocated to the segments and to assess their performance. 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 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. 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. Details are provided in the reconciliations from segment assets and liabilities to the position of the Group. Property development and 2017 Manufacturing construction Others Elimination Total RM’000 RM’000 RM’000 RM’000 RM’000 Revenue Revenue from external customers 109,745 83,218 - - 192,963 Inter-segment revenue 6,005 45,275 26,594 (77,874) - Total revenue 115,750 128,493 26,594 (77,874) 192,963 Finance costs (1,257) (338) (7) 182 (1,420) Interest income 481 92 2,527 (2,842) 258 Net finance (expense)/income (776) (246) 2,520 (2,660) (1,162) Amortisation of intangible assets (22) (59) - - (81) Depreciation of property, plant and equipment (3,324) (1,567) (56) - (4,947) Segment profit/(loss) before tax 6,654 9,731 (608) - 15,777 - Net gain on disposals of property, plant and equipment 32 787 57 - 876 - Net gain on disposals of subsidiaries 6,824 3 - - 6,827 - Share of profit of a joint venture 282 - - - 282 - Share of losses of associates (290) (33) - - (323) - Impairment losses on trade receivables (38) - - - (38) - Inventories written down (191) - - - (191) - Reversal of inventories written down 111 - - - 111 - Reversal of impairment losses on trade receivables 10 - - - 10 - Net unrealised loss on foreign exchange (561) - * - (561) Capital expenditure 2,049 5,759 - - 7,808 Investments in associates 5,231 216 - - 5,447 Investment in a joint venture 1,109 - - - 1,109 Segment assets 123,367 254,323 215 - 377,905 Segment liabilities 24,961 189,049 119 - 214,129 * Amount is less than RM1,000 N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( C O N T ’ D )