TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
87
Notes to the financial statements
For the financial year ended 31 March 2016
30.
Contingent liabilities
Group
Company
2016
2015
2016
2015
$
$
$
$
Corporate guarantees issued for bank facilities,
finance lease facilities and corporate loans
granted to subsidiaries
–
–
3,310,559 5,321,029
Letters of undertaking to provide finances to loss
making subsidiaries and associates
–
121,206 13,143,659 13,679,545
Total
–
121,206 16,454,218 19,000,574
Management is of the opinion that the fair value of the above corporate guarantee is not material.
31.
Operating lease arrangements
Group
2016
2015
$
$
Lease expense under operating leases
12,867,331 12,842,757
Included in the lease expense is an amount of $1,071,644 (2015: $1,090,179) contingent rental incurred during the year
as well as an amount of $3,254,301 (2015: $2,892,580) paid to a related party (Note A).
As at the end of the reporting period, the Group has outstanding commitments under non-cancellable operating leases,
which fall due as follows:
Group
2016
2015
$
$
Within one year
- non-related parties
8,719,541 7,731,751
- a related party (Note A)
2,660,089 2,280,474
Subtotal
11,379,630 10,012,225
In the second to fifth years inclusive
- non-related parties
11,603,108 11,346,155
- a related party (Note A)
3,480,078
690,179
Subtotal
15,083,186 12,036,334
Total
26,462,816 22,048,559
Note A: The related party is a corporate shareholder of the Company.
