152 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 34. OPERATING SEGMENTS Operating segments are defined as components of the Group that: (a) Engages in business activities from which it could earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group); (b) Whose operating results are regularly reviewed by the chief operating decision maker of the Group in making decisions about resources to be allocated to the segment and assessing its performance; and (c) For which discrete financial information is available. An operating segment may engage in business activities for which it has yet to earn revenues. The Group reports separately information about each operating segment that meets any of the following quantitative thresholds: (a) Its reported revenue, including both sales to external customers and intersegment sales or transfers, is ten per cent (10%) or more of the combined revenue, internal and external, of all operating segments. (b) The absolute amount of its reported profit or loss is ten per cent (10%) or more of the greater, in absolute amount of: (i) The combined reported profit of all operating segments that did not report a loss; and (ii) The combined reported loss of all operating segments that reported a loss. (c) Its assets are ten per cent (10%) or more of the combined assets of all operating segments. Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if the management believes that information about the segment would be useful to users of the financial statements. Total external revenue reported by operating segments shall constitute at least seventy five (75%) percent of the revenue of the Group. Operating segments identified as reportable segments in the current financial year in accordance with the quantitative thresholds would result in a restatement of prior period segment data for comparative purposes. Segment performance is evaluated based on operating profit, excluding non-recurring losses, and in certain respect as explained in the table below, it is measured differently from operating profit in consolidated financial statements. Inter-segment revenue is priced along the same lines as sales to external customers and conditions and is eliminated on the consolidated financial statements. These policies have been applied consistently throughout the current and previous financial years. Segment assets exclude current tax assets, deferred tax assets and assets used primarily for corporate purposes. Segment liabilities exclude current tax liabilities and deferred 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 requirements). Details are provided in the reconciliations from segments assets and liabilities to the Group position. The Group is principally engaged in energy services, property development, and property investment, investment holding activities and other management services activities. The reportable segments of the Group are summarised as follows: (a) Property development: Joint venture property development (b) Energy services: Trading, leasing and energy related services, engineering and fabrication. (c) Investment holdings and others: Investment holdings and management services activities
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