96
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
27.
Commitments
(continued)
(b)
Operating lease commitments – where the Group is a lessee
The Group leases land from non-related parties under non-cancellable operating lease
agreements. The leases have varying terms, escalation clauses and renewal rights.
The future aggregate minimum lease payables under non-cancellable operating leases
contracted for at the balance sheet date but not recognised as liabilities, are as follows:
Group
2014
2013
$’000
$’000
Not later than one year
2,548
2,233
Later than one year but not later than five years
10,478
8,956
Later than five years
41,283
41,904
54,309
53,093
(c)
Operating lease commitments – where the Group is a lessor
The Group lease out the building to non-related parties under non-cancellable operating
lease at a fixed rate.
The future minimum lease receivables under non-cancellable operating leases contracted for
at the balance sheet date but not recognised as receivables, are as follows:
Group
2014
2013
$’000
$’000
Not later than one year
180
330
Later than one year but not later than five years
–
180
180
480
28.
Financial risk management
Financial risk factors
The Group’s activities expose it to market risk (including currency risk, interest rate risk and
price risk), credit risk and liquidity risk. The Group’s overall risk management strategy seeks to
minimise any adverse effects from the unpredictability of financial markets on the Group’s financial
performance. It is, and has been throughout the year under review, the Group’s policy that no
trading in derivative financial instruments shall be undertaken.
The Board of Directors is responsible for setting the objectives and underlying principles of financial
risk management for the Group. This includes establishing policies such as authority levels,
oversight responsibilities, risk identification and measurement and exposure limits.
Financial risk management is carried out by the finance department in accordance with the policies
set. The finance personnel identifies, evaluates and hedges financial risks in close co-operation with
the Group’s operating units. The finance personnel measures actual exposures against the limits
set and prepares weekly reports for review by the Chief Financial Officer. Regular reports are also
submitted to the Board of Directors.
