for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Annual Report 2016
-
124
-
22.
CommitmentsANDCONTINGENCIES
(a)
Capital commitments
Capital expenditurecontracted for as at theendof the reportingperiod in respect of property, plant and
equipment andunquoted equity securities contracted for but not recognised in the financial statements
was $799,000 and $566,000 (2015: $2,944,000 and $636,000) respectively.
(b)
Operating lease commitment – as lessee
TheGroup leases itsproperties andcertainequipment under leaseagreements that arenon-cancellable
within a year and contain provisions for rental adjustments. These leases have an average tenure of
between five to twelve years with no contingent rent provision included in the contracts. There are
restrictions placed on subleasing the leased equipment and properties to third party.
Future minimum rental payable under non-cancellable operating leases at the end of the reporting
period are as follows:
Group
2016
2015
$’000
$’000
Not later than one year
1,226
1,188
Later than one year but no later than five years
4,880
4,737
Later than five years
3,510
4,611
9,616
10,536
(c)
Contingent liabilties
TheCompanyhasprovided financial support tocertain subsidiarieshavingcurrent liabilities inexcess
of current assets of $15,186,000 (2015: $17,407,000).
