ANNUAL REPORT 2014
97
NOTES TO THE
FINANCIAL STATEMENTS
33. Operating segments
The Group has six divisions, as described below, which are the Group’s strategic business units. The strategic
business units offer different products and services, and are managed separately. For each of the strategic
business units, the Chief Operating Decision Makers (“CODM”), which in this case is the Executive Directors
of the Group, review internal management reports on a monthly basis. The following summary describes the
operations in each of the Group’s division:
-
Suspension Division, Malaysia
: Business in products such as leaf springs, parabolic springs, coil springs,
shock absorbers, gas springs, U-bolts and metal parts.
-
Interior & Plastics Division, Malaysia
: Business in products such as plastics parts, interiors, seatings for
motor vehicles, buses, auditoriums, cinemas and rails and light rails system.
-
Electrical & Heat Exchange Division, Malaysia
: Business in products such as air-conditioning systems,
radiators, starter motors, alternators, wiper system, distributors and other electrical parts.
-
Marketing Division, Malaysia
: Trading and distribution of automotive components/parts manufactured by the
Group for the replacement and export market.
-
Others, Malaysia
: Operations related to the rental of investment properties in Malaysia, provision of
management services for companies within the Group, and provision of automotive research and
development services.
-
Operations Outside Malaysia
: Business in Thailand, Indonesia, Vietnam, Australia and USA.
Performance is measured based on segment revenue and profit before tax, as included in the internal
management reports that are reviewed by the CODM. Segment profit is used to measure performance as
management believes that such information is the most relevant in evaluating the results of certain segments
relative to other entities that operate within these industries.
Segment assets
The total of segment asset is measured based on all assets of a segment, as included in the internal
management reports that are reviewed by the CODM. Segment total asset is used to measure the return of
assets of each segment.
Segment liabilities
Segment liabilities information is neither included in the internal management reports nor provided regularly to
the CODM. Hence no disclosure is made on segment liabilities.
Segment capital expenditure
Segment capital expenditure is the total cost incurred during the year to acquire property, plant and equipment,
and intangible assets other than goodwill.
