30. Commitments and contingencies (cont’d)
(b) Operating lease commitments – As lessor
The Group entered into operating leases on its fleet of vessels. As at 30 June 2015,
these non-cancellable leases have remaining lease terms ranging from 1 month to
12 years (2014: 1 month to 12 years).
Future minimum lease payments receivable under non-cancellable operating leases
as at 30 June are as follows:
Group
2015 2014
$’000 $’000
Not later than one year
13,034 14,718
Later than one year but not later than five years
28,330 30,218
Later than five years
14,690 17,596
56,054 62,532
(c) Operating lease commitments – As lessee
In addition to the land use rights disclosed in Note 5, the Group has entered into
commercial leases on its office premises and yard space. There are no restrictions
placed upon the Group by entering into these leases. Two of the leases which are
located in Singapore include a clause to enable upward revision of the annual rental
charged based on prevailing market conditions, however, not exceeding 5.5% of
the annual rent for each immediately preceding year. Operating lease expenses,
excluding amortisation of land use rights recognised in the Group’s consolidated
income statement during the year amounted to $2,225,000 (2014: $2,358,000).
Future minimum lease payments payable under non-cancellable operating leases
(excluding land use rights) as at 30 June are as follows:
Group
2015 2014
$’000 $’000
Not later than one year
1,944
1,786
Later than one year but not later than five years
5,385
5,341
Later than five years
6,260
7,100
13,589 14,227
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
143
