30. Commitments and contingencies (cont’d)
(d) Finance lease commitments – As lessee
The Group has entered into leases for vessels, motor vehicles and plant and
machinery. These leases are classified as finance leases with expiration over the
next 6 years (2014: 6 years). Under the terms of the finance lease arrangements, no
contingent rents are payable. The average effective interest rate implicit in the leases
is 1.78% (2014: 1.05%) per annum for the Group.
Future minimum lease payments under finance leases (Note 17) together with the
present value of the net minimum lease payments for the Group are as follows:
Group
2015
2014
Minimum Present Minimum Present
lease value of
lease value of
payments payments payments payments
$’000 $’000 $’000 $’000
Not later than one year
9,883 9,415
9,239
8,584
Later than one year but not
later than five years
13,322 12,940 17,753 17,210
More than five years
–
–
5
5
Total minimum lease payments
23,205 22,355 26,997 25,799
Less: Amounts representing
finance charges
(850)
–
(1,198)
–
Present value of minimum
lease payments
22,355 22,355 25,799 25,799
(e) Contingent liabilities
Corporate guarantees (unsecured)
The Company has given the following corporate guarantees in respect of banking
facilities utilised as at 30 June:
Company
2015 2014
$’000 $’000
Subsidiaries
581,430 706,733
The Company has agreed to provide continuing financial support to certain
subsidiary companies.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
144
