FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201234. SEGMENT INFORMATIONManagement has determined the operating segments based on the reports reviewed by the Executive Committee (“Exco”) that are used tomake strategic decisions. The Exco comprises the Chief Executive Officer, the Chief Financial Officer, and the department heads of each businesswithin each segment.The Executive Committee considers the business from two segments:(i) The bulk segment which sources, manufactures and sells edible oils and specialty fats and oils in bulk for a variety of end uses; and(ii) The consumer pack segment which manufactures and sells edible oils and bakery fats to consumers in packaged form.The Group measures and tracks the profitability in terms of operating margin and earnings before interest, tax, depreciation and amortisation(“EBITDA”).Operating margin is calculated as revenue, less cost of sales (excluding depreciation), selling and distribution expenses and foreign exchangegains/(losses). Operating margin relating to inter-segment sales are reported under the segment where the final sales to third parties are made.EBITDA is calculated as operating margin add other income, less administrative expenses (excluding depreciation and amortisation) and otheroperating expenses.108