NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
38. Capital management (cont’d)
The Group monitors its capital structure as follows:
The Group will continue to be guided by prudent financial policies of which gearing is an important aspect.
39. Segment information
For management purposes, the Group is organised into business units based on their products and services, and has three
reportable operating segments as follows:
•
Civil engineering: Infrastructure construction and civil engineering works for bridges, expressways, tunnels and other
related infrastructure works.
•
Properties development: Development of properties in the residential, commercial and industrial sectors.
•
Properties investment: Investment properties held to earn rentals and/or for capital appreciation and others.
Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments.
The three operating segments are independently managed by the respective segment managers responsible for the performance
of the respective segments under their charge. The segment managers report directly to the management of the Company
who review the segment results every quarter for the purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit margins of the products and services. Corporate overheads,
taxes and investment securities are managed on a group basis and are not allocated to operating segments.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
Group
2014
2013
Note
(Restated)
S$’000
S$’000
Loans and borrowings
26
4,992
36,926
Less: Cash and short term deposits
20
(165,538)
(102,778)
Net debt
(160,546)
(65,852)
Equity attributable to owners of the Company
205,364
141,912
Hock Lian Seng Holdings Limited
Annual report 2014
102
