NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
76
4.
OPERATING 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:
(a)
the “Components Distribution” operating segment engages in the distribution and trading of electronic
components and cables;
(b)
the “IT Infrastructure” operating segment engages in the provision of computer data storage management
solutions and services; and
(c)
the “Consumer Electronics Products” operating segment engages in the distribution and retailing of
consumer electronics products.
Management monitors the results of the Group’s reportable operating segments separately for the purpose of
making decisions about resources allocation and performance assessment. Segment performance is evaluated based
on reportable segment results, which is a measure of adjusted profit before tax. The adjusted profit before tax
is measured consistently with the Group’s profit before tax except that bank interest income, fair value changes
on investment properties and derivative financial instruments, finance costs, share of profit of an associate and
corporate and other unallocated expenses are excluded from such measurement.
Segment assets exclude an investment in an associate, deferred tax assets, forward currency contracts, cash
and cash equivalents and corporate and other unallocated assets as these assets are managed on a group basis.
Segment liabilities exclude income tax payable, interest-bearing bank and other borrowings, deferred tax liabilities
and corporate and other unallocated liabilities as these liabilities are managed on a group basis.
Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third
parties at the then prevailing market prices.
