87
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
26 RELATED PARTIES (CONT’D)
Commitments and contingencies
The Company has issued corporate guarantees to banks for borrowings of certain
subsidiaries. These bank borrowings amount to $43,700,716 (2015: $62,533,404) at the
reporting date.
27 OPERATING SEGMENTS
Information about reportable segment profit or loss, assets and liabilities
For management purposes, the reporting entity is organised into the following major
strategic operating segments that offer different products and services:
•
Marine & Offshore: This segment sells rigging and mooring equipment, offshore
oil and gas equipment, and related marine and engineering hardware and
accessories; and
•
Property Development: This segment develops, markets and sells real estate
properties, and provides real estate services.
Inter-segment sales are measured on the basis that the entity actually used to price the
transfers. Internal transfer pricing policies of the group are as far as practicable based
on market prices. The accounting policies of the operating segments are the same as
those described in the summary of significant accounting policies.
The management reporting system evaluates performances based on a number
of factors. However, the primary profitability measurement to evaluate segment’s
operating performance is segment profit before tax because 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.
The following tables illustrate the information about the reportable segment profit or
loss, assets and liabilities.
27 OPERATING SEGMENTS (CONT’D)
Information about reportable segments
Total for
Marine Property reportable
&Offshore development segments Unallocated Total
$
$
$
$
$
Group
2016
External revenue
52,276,349 5,120,420 57,396,769
– 57,396,769
Interest income
5,803
1,235
7,038
–
7,038
Interest expense
(1,136,182)
(185,468) (1,321,650)
– (1,321,650)
Depreciation and
amortisation
(1,925,046)
(269,797) (2,194,843) (43,027) (2,237,870)
Reportable segment
profit/(loss) before
tax
18,320 (22,785,000) (22,766,680)
– (22,766,680)
Other unallocated
expenses
–
–
– (894,892)
(894,892)
Consolidated loss before
tax from continuing
operations
(23,661,572)
Reportable segment
assets
59,465,184 57,841,346 117,306,530 564,954 117,871,484
Capital expenditure
445,293 1,576,196 2,021,489 4,850 2,026,339
Reportable segment
liabilities
31,453,220 24,165,946 55,619,166 172,670 55,791,836
