2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 200324. SEGMENT INFORMATIONSegment information is presented in respect of the Group’s geographical segments. The primary format,geographical segments, is based on the Group’s management and internal reporting structure. Inter-segmentpricing is determined based on negotiated terms.The Group operates only in a business segment. Accordingly, information by business segments is not presented.Segments results, asset and liabilities include items directly attributable to a segment as well as those that can beallocated on a reasonable basis.Segment capital expenditure is the total cost incurred during the period to acquire segment assets that areexpected to be used for more than one period.The segments are operated in both local and China markets.In presenting information on the basis of geographical segments, segment revenue is based on the geographicallocation of assets.There are no comparative figures for the segment information as this is the first set of consolidated financialstatements prepared by the Group.Geographical segments Malaysia China Total2003 2003 2003RM’000 RM’000 RM’000Revenue 61,784 2,842 64,626Segment result 19,279 1,105 20,384Allocated expenses (8,072) (2,792) (10,864)Operating profit/(loss) 11,207 (1,687) 9,520Interest expenses (1,036) (404) (1,440)Interest income 127 19 146Unallocated negative goodwill 20,829Profit before taxation 29,055Tax expense (3,480)Net profit for the year 25,575Segment assets 141,699 31,961 173,660Segment liabilities 66,427 18,677 85,104Unallocated liabilities 9,601Total liabilities 94,705Other informationCapital expenditure 4,284 5,315 9,599Depreciation 3,147 698 3,845542003 ANNUAL REPORT