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FINANCIAL REPORTS
169
Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
32. Operating lease arrangements
(a) The Group and Company as lessee of land
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 lease contracted for as at the financial year end but not
recognised as liabilities are as follows:
Group and Company
2015
2014
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
38,640
39,179
41,334
41,873
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 equipment. The lease period is five years with no renewal or
purchase option included in the contracts.
The future aggregate minimum lease payments under operating lease contracted for as at the financial year end but not recognised as liabilities
are as follows:
Group and Company
2015
2014
RM’000
RM’000
Not later than one year
152
152
Later than one year and not later than two years
126
278
278
430
The lease rental for the current financial year is disclosed in Note 7.