Bursa Malaysia • Annual Report 2013
154
Financial Reports
30. Compensation funds (cont’d.)
(b) Depository - CF
In 1997, pursuant to the provisions of Section 5(1)(b)(vii) of the Securities Industry (Central Depositories) Act, 1991, Bursa Malaysia Depository, a
wholly-owned subsidiary, established a scheme of compensation for the purpose of settling claims by depositors against Bursa Malaysia Depository, its
authorised depository agents and Bursa Malaysia Depository Nominees. The scheme comprises monies in the Depository - CF and insurance policies.
Bursa Malaysia Depository’s policy is to maintain the balance in the Depository - CF at RM50,000,000. In consideration for the above, all revenue
accruing to the Depository - CF’s deposits and investments are to be credited to Bursa Malaysia Depository and all expenditure incurred for and on
behalf of the Depository - CF will be paid for by Bursa Malaysia Depository.
31. Operating lease arrangements
(a) The Group and Company as lessee of building
The Company has entered into two non-cancellable operating lease agreements for the use of land. The leases are for a period of 99 years with no
renewal or purchase option included in the contracts. The leases do not allow the Company to assign, transfer or sublease or create any charge, lien or
trust in respect of or dispose of the whole or any part of the land. Tenancy is however allowed with the consent of the lessor.
The future aggregate minimum lease payments under non-cancellable operating leases contracted for as at the financial year end but not recognised
as liabilities are as follows:
Group and Company
2013
2012
RM’000
RM’000
Not later than one year
539
539
Later than one year and not later than five years
2,155
2,155
Later than five years
39,175
40,253
41,869
42,947
The lease rental for the current financial year is disclosed in Note 7.
(b) The Group and Company as lessee of equipment
The Company has entered into an operating lease arrangement for the use of computer equipment. The leases have lives of five years with no renewal
or purchase option included in the contracts.
The future aggregate minimum lease payments under operating leases contracted for as at the financial year end but not recognised as liabilities are
as follows:
Group and Company
2013
2012
RM’000
RM’000
Not later than one year
152
152
Later than one year and not later than five years
430
582
582
734
The lease rental for the current financial year is disclosed in Note 7.
Notes to the Financial Statements
31 December 2013
