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Notes to the Financial Statements (cont’d)
For the financial year ended 31 December 2011
40. Segmental information
The revenue of the Group is derived from tin mining and smelting of tin concentrates and tin bearing materials, the production
of various grades of refined tin metal and the sales and delivery of refined tin metal and by-products.
For management purposes, the Group is organised into two business segments within the tin industry, and has three
reportable operating segments as follows:
(a) Tin Smelting
Tin smelting includes the smelting of tin concentrates and tin bearing materials, the production of various grades of
refined tin metal under the MSC brand name and the sale and delivery of refined tin metal and by-products.
(b) Tin Mining
Tin mining includes activities involving exploration for and mining of tin.
(c) Others
The investments in other metal and mineral resources have been aggregated to form a reportable operating segment.
Business segments
For purpose of better decision-making about resource allocation and performance assessment, management has changed
from geographical method to business unit method in determining the reported segment profit or loss.
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 profit before tax.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
These intercompany transactions are eliminated on consolidation.
MALAYSIA SMELTING CORPORATION (43072-A) • ANNUAL REPORT 2011 165