115
A N N U A L R E P O R T 2 0 1 6
For the Financial Year Ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
30.
Commitments and contingencies
(a)
Capital commitments
Capital expenditure contracted for as at the end of the reporting period but not recognised in the financial statements is as follows:
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Capital commitments in respect of property, plant and
equipment
6,387
5,506
–
–
(b)
Operating lease commitments - as lessee
The Group has non-cancellable operating lease agreements in respect of equipment, land, production and storage premises and
retail outlets. These non-cancellable operating leases have average tenure of between 1 to 60 years. Some of the leases include a
clause to enable upward revision of the rental charges on an annual basis based on prevailing conditions. Some of the rental outlets
include clauses whereby rental is charged using a base rental plus a percentage of the outlet’s sales turnover.
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Minimum lease payments under operating leases
recognised as an expense
10,820
9,939
–
–
Included in minimum lease payment is an amount of $1,546,000 (2015: $1,303,000) pertaining to contingent rental incurred during the
financial year ended 31 March 2016.
