102
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
27. COMMITMENTS AND CONTINGENCIES
(a)
Operating leases – as lessee
The Group leases certain properties, equipment and vehicles for its operations under lease agreements that
are non-cancellable. The leases expire at various dates till year 2059 with the property leases containing
provisions for rental adjustments. Renewals are at the options of the specific entity that holds the lease but
the leases have no purchase options.
Future minimum lease payments for all leases with initial or remaining terms of one year or more are as
follows:
Group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
Within one year
6,712
6,394
554
526
After one year but not more than
five years
12,581
7,398
2,184
2,103
More than five years
16,806
31,297
8,910
9,471
36,099
45,089
11,648
12,100
(b)
Capital expenditure
As at the end of the financial year, the Group had the following capital expenditure commitments for the
acquisition of property, plant and equipment:
Group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
Authorised and committed
3,363
859
–
–
Share of joint venture’s capital
commitments
71
28
–
–
3,434
887
–
–
(c)
Contingent liabilities
Corporate guarantees issued by the
Company for bank facilities granted
to subsidiaries
–
–
46,519
48,944
Guarantees issued to external parties
4,884
5,155
103
103
The corporate guarantees have not been recognised by the Group and the Company as management has
assessed the fair value of the corporate guarantees to be immaterial.
Guarantees to external parties comprise guarantees issued in lieu of security deposits required by suppliers
and non-financial guarantees to its business associates which commit the group to make payments on
behalf of these entities upon failure to perform under the terms of the relevant contracts.
