PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 174 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 35. OPERATING SEGMENTS PRG Holdings Berhad and its subsidiaries are principally engaged in the manufacturing and sale and marketing of webbings, yarn, furniture components, rubber strips and fabrics as well as being involved in property development, construction, retail and healthcare. The Group has arrived at four (4) reportable segments that are organised and managed separately according to the nature of products and services, specific expertise and technologies requirements and which requires different business and marketing strategies. The reportable segments are summarised as follows: (i) Manufacturing The manufacturing and sale and marketing of rubber strips and sheets and narrow elastic fabrics, upholstery webbings, covered elastic yarn, rigid webbings, safety webbings, metal components for furniture, PVC and other plastic products and trading. (ii) Retail Principally engaged in the retail sale of clothing, footwear and ancillary accessories. (iii) Property development and construction Development and construction of residential and commercial properties. (iv) Healthcare Investments in healthcare related businesses. Other operating segments that do not constitute reportable segments comprise operations related to investment holding and agriculture. The segmentation for the respective investment holding companies will be determined by the segment of its respective subsidiaries. The above 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.