109
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
29.
COMMITMENTS AND CONTINGENT LIABILITIES (CONT’D)
Contingent liabilities (cont’d)
The amount of credit facilities utilised by the subsidiary companies as at the balance sheet date
amounted to Nil (2013: $6,192,000).
In the opinion of the directors, no loss is anticipated from these guarantees.
The fair values of the financial guarantee contracts have not been recognised on the balance sheet
at 31 December 2014 of the Company as the Company is of the view that the fair values of the
corporate guarantees are not significant and that no material losses will arise in respect of the
guarantees provided at the date of these financial statements.
30.
SEGMENT INFORMATION
For management purposes, the Group is organised into business units based on their products and
services, and has two reportable operating segments as follows:
(i)
The trading segment is a supplier of steel products and includes the holding of investments
in subsidiaries.
(ii)
The manufacturing segment produces steel products and provides related engineering
services.
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.
Transactions between operating segments are generally based on terms determined on commercial
basis.
