Page 139 - ar2012

Notes to the Financial Statements
For the fnancial year ended 31 December 2012
36. Capital management (cont’d)
The Group monitors capital using gearing ratios, by dividing net debt with total equity. The Group’s policy is to keep the gearing
ratio within the range of gearing ratios of leading companies in similar industry in Indonesia in order to secure access to fnance
at a reasonable cost.
2012 2011
Rp million Rp million
Non-current interest-bearing loans and borrowings and bonds and
Sukuk Ijarah payables 4,116,004 3,925,927
Current interest-bearing loans and borrowings 2,664,213 3,334,397
6,780,217 7,260,324
Less: Cash and cash equivalents (5,082,296) (6,535,204)
Net debts 1,697,921 725,120
Total equity 22,828,509 21,440,557
Gearing ratio 7% 3%
37. Segment information
For management purposes, the Group is organized into business units based on their products and services and has two reportable
operating segments as follows:
Plantations segment
Plantations segment is mainly involved in the development and maintenance of oil palm, rubber and sugar cane plantations and
other business activities relating to palm oil, rubber and sugar cane processing, marketing and selling. This segment is also involved
in the cultivation of cocoa, coconut and tea.
Edible oils and fats segment
Edible oils and fats segment produces, markets and sells edible oil, margarine, shortening and other related products and CNO
and its derivative products.
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 proft or loss and is measured
consistently with operating proft or loss in the consolidated fnancial statements. However, Group fnancing (including fnance costs
and fnance income) and income taxes are managed on a group basis and are not allocated to operating segments.
Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with third parties.
Segment revenues, segment expenses and segment results include transfers between business segments. Those transfers are
eliminated for purposes of consolidation.
Other/elimination for segment assets and liabilities relates primarily to eliminations between inter-segment receivables and payables,
and the company’s assets and liabilities.
Indofood Agri Resources Ltd. • Annual Report 2012 137