. 12 0
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
22.
COMMITMENTSANDCONTINGENCIES
(a)
Capital commitments
Capital expenditurecontracted for as at theendof the reportingperiod in respect of property, plant
and equipment and unquoted equity securities contracted for but not recognised in the financial
statementswas $16,000 and$291,000 (2016: $799,000 and$566,000) respectively.
(b)
Operating leasecommitment–as lessee
TheGroup leases itspropertiesandcertainequipmentunder leaseagreements thatarenon-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
restrictionsplacedon subleasing the leasedequipment andproperties to thirdparty.
Futureminimum rental payable under non-cancellable operating leases at the end of the reporting
period are as follows:
Group
2017
2016
$’000
$’000
Not later thanone year
1,073
1,226
Later thanone year but no later than five years
4,244
4,880
Later than five years
1,939
3,510
7,256
9,616
(c)
Contingent liabilities
TheCompanyhasprovided financial support tocertain subsidiarieshavingcurrent liabilities inexcess
of current assets of $18,767,000 (2016: $15,186,000).
