NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
45 EVENTS OCCURRING AFTER THE REPORTING PERIOD
1.
Increase in capital injection in subsidiaries:
(a)
In January 2015, the Company’s 89.5% indirectly-owned subsidiary, Straits Real Estate Pte. Ltd. (“SRE”),
injected $10.1 million into the share capital of SRE Venture 5 Pte. Ltd. which was enlarged from $1 to $10.1
million.
(b)
In February 2015, SRE increased its share capital from $47.5 million to $87.4 million in which the Group
increased its contribution to $78.2 million.
2.
On 20 March 2015, the Company entered into a binding memorandum of understanding with a purchaser to sell
(“Proposed Sale”) all the issued ordinary shares in the capital of Atbara Holdings Private Limited, a wholly-owned
subsidiary of the Company. Atbara is the registered owner of 14 units at The Holland Collection. The Proposed Sale
is not expected to have a material impact on the earnings per share and net tangible asset per share of the Group.
46 SEGMENT INFORMATION
For management purposes, the Group is organised into business units based on their products and services, and has four
reportable operating segments as follows:
(a)
The Resources’ principal activities are in the smelting of tin concentrates and tin bearing materials, the production
of various grades of refined tin metal and the sale and delivery of refined tin metal and by-products, as well as
investments in other metals and mineral resources.
(b)
The Real Estate segment comprises property investment, sales and leasing, property development, as well as property
and real estate fund management. This includes the Group’s 20.1% stake in ARA Asset Management Limited and
89.5% stake in Straits Real Estate Pte. Ltd.
(c)
The Hospitality business includes hotel ownership and hotel management under Far East Hospitality Holdings
Pte. Ltd. (“FEHH”), the Group’s 30% associate. The Group completed the sale of the hotel assets in Singapore on
1 August 2013, and the sale of the hotel assets and business in Australia and New Zealand on 1 November 2013 to
FEHH.
(d)
The segment for Others comprises Group-level corporate and treasury services.
Management monitors the operating results of each business unit separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on net profit, as explained
in the table below.
Transactions between operating segments are based on terms agreed between the parties.
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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
