BAKERTECHNOLOGYLIMITED
ANNUALREPORT2013
124
Notes to the
Financial Statements
for the financial year ended 31December 2013
27. Commitments
(a)
Capital commitments
Capital expenditure contracted for as at the end of the reporting period in respect of property, plant and equipment and
unquoted equity securities contracted for but not recognised in the financial statements was $9,600,000 and $1,397,000
(2012: $3,000,000 and $Nil) respectively.
(b)
Operating lease commitment – as lessee
The Group leases its properties and certain equipments under lease agreements that are non-cancellable within a year and
contain provisions for rental adjustments. These leases have an average tenure of between five to twelve years with no
contingent rent provision included in the contracts. There are restrictions placed on subleasing the leased equipments and
properties to third party.
Futureminimum rental payable under non-cancellable operating leases at the endof the reportingperiod are as follows :
Group
2013
2012
$
$
Not later than one year
896,381
513,802
Later than one year but no later than five years
3,553,947 1,883,240
Later than five years
5,217,556 2,864,369
9,667,884 5,261,411
28. Related party transactions
An entity or individual is considered to be a related party of theGroup if:
(i)
it possesses theability (directlyor indirectly) to control or exercise significant influenceover theoperatingandfinancial decision
of theGroup or vice versa; and
(ii) it is subject to common control or common significant influence.
In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions
between theGroup and relatedpartieswho arenotmembers of theGroup tookplaceduring the year at terms agreedbetween the
parties :-
(a)
Sales andpurchaseof goods and services
During the financial year 2013, the amount of contract revenue earned from a company related to its directors was
$Nil (2012: approximately $14,542,000).
There are noother significant transactions between theGroup and relatedpartieswho are notmembers of theGroupduring
the financial year.
