108
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
29.
COMMITMENTS AND CONTINGENT LIABILITIES (CONT’D)
The Group and the Company as lessor
As at the balance sheet date, the Group and the Company have contracted with their tenants for
the following future minimum lease payments:
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Within one financial year
4,095
1,617
1,546
996
After one financial year but within
five financial years
2,822
324
1,202
253
6,917
1,941
2,748
1,249
Capital commitments
As at the balance sheet date, the Group and the Company had the following capital commitments
contracted but not provided for in the financial statements:
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Plant and machinery
–
250
–
250
Contingent liabilities
Guarantees
Intra-group financial guarantees comprise corporate guarantees granted by the Company to banks
in respect of banking facilities amounting to $13,404,000 (2013: $32,986,000) to secure banking
facilities provided to certain subsidiaries. The financial guarantees will expire when the loans
have been paid and discharged and/or when the banking facilities are no longer available to the
subsidiaries.
The principal risk to which the Company is exposed is credit risk in connection with the guarantee
contracts it has issued. The credit risk represents the loss that would be recognised upon a default
by the subsidiaries for which, the guarantees were given on behalf of.
There are no terms and conditions attached to the guarantee contracts that would have a material
effect on the amount, timing and uncertainty of the Company’s future cash flows.
