144
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
35. CAPITAL MANAGEMENT (CONT’D)
The Group monitors capital using gearing ratios, by dividing net loans and borrowings 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 finance at a reasonable cost.
2014
2013
Rp million
Rp million
Non
-
current interest
-
bearing loans and borrowings
5,068,141
4,304,964
Current interest
-
bearing loans and borrowings and
bonds and Sukuk Ijarah payables
4,749,195
4,489,762
9,817,336
8,794,726
Less: Cash and cash equivalents
(3,585,780)
(3,802,920)
Net debts
6,231,556
4,991,806
Total equity
23,717,152 22,833,234
Gearing ratio
26%
22%
36. 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, tea plantations and industrial timber plantations (Hutan Tanaman
Industri or “HTI”).
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 profit or loss and
is measured consistently with operating profit or loss in the consolidated financial statements. However, Group financing
(including finance costs and finance income), foreign exchange gains/losses and income taxes are managed on a group
basis and are not allocated to operating segments.
Transfer prices between business segments are based on terms agreed between the parties. Segment revenues, segment
expenses and segment results include transfers between business segments. Those transfers are eliminated for purposes
of consolidation.
Others/eliminations for segment assets and liabilities relates primarily to eliminations between inter
-
segment receivables
and payable, and the Company’s asset and liabilities.
