ANNUAL REPORT 2015 |
167
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
24. COMMITMENTS
(a) Operating lease commitments
The Group had entered into non-cancellable lease arrangements for boutiques, offices and staff housing, resulting in
future rental commitments. The Group has aggregate future minimum lease commitments as at the each of the reporting
period as follows:
Group
2015
2014
RM’000
RM’000
Not later than one (1) year
45,747
44,943
Later than one (1) year but not later than five (5) years
29,572
45,431
75,319
90,374
Certain lease rentals are subject to contingent rental, which are determined based on a percentage of sales generated
from boutiques.
(b) Capital commitments
Group
2015
2014
RM’000
RM’000
Approved and contracted for:
Property, plant and equipment:
- renovation for offices and warehouses
366
-
- properties under construction
-
3,058
- others
40
133
Investment properties under construction
-
3,210
406
6,401
25. CONTINGENT LIABILITIES
Company - Unsecured
As at 30 June 2015, the Company has given corporate guarantees amounting to RM319,867,000 (2014: RM283,827,000) to
financial institutions for banking facilities granted to certain subsidiaries. The amount of banking facilities utilised by certain
subsidiaries as at the end of each reporting period are as follows:
2015
2014
RM’000
RM’000
Secured borrowings
98,598
96,124
Unsecured borrowings
35,692
38,455
134,290
134,579
The Directors are of the view that the chances of the financial institutions to call upon the corporate guarantees are remote.
Accordingly, the Directors are of the view that the fair values of the above corporate guarantees for banking facilities of
subsidiaries are negligible.
