Notes to the Financial Statements
(Cont’d)
For the financial year ended 30 April 2016
(In Singapore Dollar)
ANNUAL REPORT 2016
DRIVING IT UP
| 109
38.
Capital management (cont’d)
Group
2016
2015
$’000
$’000
Trust receipts
49,686
70,641
Loans (secured)
57,636
56,904
Bank borrowings
107,322
127,545
Equity attributable to the equity holders of the Company
117,505
121,034
Less: Statutory reserve fund
(424)
(424)
Distributable net assets
117,081
120,610
Gearing ratio (times)
0.92
1.06
The Company and certain subsidiaries of the Group are subject to financial covenants for credit facilities
provided by banks. The Company and these subsidiaries are required to maintain certain leverage ratios,
debt service coverage ratios, interest coverage and shareholders’ funds.
As disclosed in Note 30, a subsidiary of the Group is required to maintain a five percent reserve at each
distribution of dividends until the reserve reaches at least ten percent of the subsidiary’s authorised capital.
This externally imposed capital requirement has been complied with by the subsidiary for the financial
years dated 30 April 2016 and 30 April 2015.
39.
Segment information
For management purposes, the Group is organised into business units based on their geographical
locations, and has four reportable segments as follows:
I.
South East Asia
II.
North Asia
III.
Africa
IV.
Others
Distribution of tyres and wheels to external customers are included in the South East Asia, North Asia,
Africa and other segments. Manufacturing of alloy wheels sold directly to external customers are included
in the South East Asia segment.
Except as indicated above, no operating segments have been aggregated to form the above reportable
operating segments. Management monitors the operating results of its business units separately for
the purpose of making decisions about resource allocation and performance assessment. Segment
performance is evaluated based on operating profit or loss which in certain respects, as explained in the
table below, is measured differently from operating profit or loss in the consolidated financial statements.
Income taxes are managed on a group basis and are not allocated to operating segments.
