Sustainability and Governance Report
Notes to the FINANCIAL STATEMENTS
[Note
25. Reserves
(a) Revaluation reserve represents the Group's share of revaluation reserve of associated company.
(b) Legal reserve represents amount set aside in compliance with local laws in certain countries where the Group operates, and are not distributable unless approval is
obtained from relevant authorities.
(c) Translation reserve represents exchange differences arising from the translation of financial statements of foreign operations whose functional currencies are different
from the Group's presentation currency and share of translation reserve from associated company.
26. Commitments and contingencies
Guarantees
The Company has provided corporate guarantees of approximately $Nil (2019: $1,851,000) to secure banking facilities for certain subsidiaries (Note 28(d)).
Operating lease commitments
as a lessee
The Group and the Company leases certain properties under lease agreements that are non-cancellable. The leases have an average tenure of between 2 to 7
are no restrictions placed upon the Group and the Company by entering into these leases.
years. There
Certain lease contracts include contingent rent provision and renewal option for additional lease period of 2 to 3 years at rental rates based on prevailing market conditions.
Future minimum lease payments under non-cancellable operating leases at the end of the reporting period are as follows:
Not later than 1 year
Later than 1 year but not later than 5 years
Minimum lease payments recognised as an expense in profit or loss for the financial year ended 31 March 2019 are shown in Note 8.
Group Company
2019
2019
$'000
$'000
539
30
572
3
1,111
33
As disclosed in Note 2.2, the Group and the Company have adopted SFRS(I) 16 on 1 April 2019. These lease payments have been recognised as right-of-use assets and
lease liabilities on the consolidated and separate balance sheets as at 31 March 2020, except for short-term leases.
The Group has various lease contracts that have not yet commenced as at 31 March 2020. The future lease payments for these non-cancellable lease contracts are
$168,000 within one year, and $274,000 within five years.
88View entire presentation