Major Business Segments

Question 1

What are major business segments?

Answer 1

Major business segments includes the different lines ofbusiness that the company is into that generates overall revenue.

To analyze the major business segments of a particular company, we need to analyse the segment itself.

This can be done by looking at notes to accounts.

Question 2

Where in the Financial statements can we find Segment information?

Answer 2

The different segments information in which a company operates is found in the notes to accounts.

Question 3

Whyie segment analysis important ?

Answer 3

To understand:

→ the profitability of each segment

→ which segments are doing well fundamentally for the company in terms of size and profitability.
.
→ which segment consumes now much capital and what kind of return do they generate on the same.

Question 4

What are the clauses of disclosure for a company ? sales are a 1000

Answer 4

It is mandatory for a company to disclose all the busines segments it operates in, which contributes more than 10% of a company’s consolidated revenue.

→ It a company’s sales are a 1000 crores they have to disclose all segmentsthat do more than 100 crores in sales.