CITIC Envirotech Ltd - Annual Report 2015 - page 131

NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
129
CITIC ENVIROTECH LTD.
Annual
Report
2015
37 OPERATING LEASE ARRANGEMENTS (cont’d)
Operating lease payments represent rentals payable by the Group and Company for certain of its
office and workshop properties. Leases are negotiated for an average of 2 years (March 31, 2015 : 2
years).
38 CONTINGENT LIABILITIES
The Company provided corporate guarantee to a subsidiary, CITIC Envirotech Water Resource
(Siyang) Co., Ltd (f.k.a United Envirotech Water (Siyang) Co Ltd) for banking facilities up to
US$15,000,000 (March 31, 2015 : US$15,000,000).
39 SEGMENT INFORMATION
The Group determines its operating segments based on internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segments and to assess their performance.
The Group is organised into business units based on their products and services, based on which
information is prepared and reported to the Group’s chief operating decision maker for the purposes
of resource allocation and assessment of performance.
The Group is principally engaged in three operating segments, namely (1) Engineering - design and
implementation of integrated environmental engineering solution based on membrane technology;
and (2) Treatment - rendering of waste water treatment services and (3) Membrane - manufacturing
and sale of polymers.
The accounting policies of the operating segments are the same as the Group’s accounting policies
described in Note 2 to the financial statements. Segment results represent the profits earned by
each segment without allocation of central administration costs, directors’ remuneration, share of
results of associates and a joint venture, interest income, foreign exchange gains and losses and
finance costs at corporate level.
Inter-segment transfers: Segment revenue and expenses include transfers between business
segments. Inter-segment sales are charged at prevailing market prices. These transfers are
eliminated on consolidation.
1...,121,122,123,124,125,126,127,128,129,130 132,133,134,135,136,137,138,139,140,141,...149
Powered by FlippingBook