FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
107
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
32 CAPITAL COMMITMENTS
The Group
2015
$’000
2014
$’000
Commitments in respect of contracts placed for the purchase of property, plant
and equipment but not provided for
2,447
1,614
33 OPERATING LEASE COMMITMENTS
The Group leases factories under non-cancellable operating lease agreements. The leases have varying terms, escalation
clauses and renewal rights.
The future aggregate minimum lease payments under the non-cancellable operating leases contracted for at the
balance sheet date but not recognised as liabilities, are as follows:
The Group
2015
$’000
2014
$’000
Not later than one year
5,785
4,215
Between one and five years
13,192
10,883
Later than five years
548
848
19,525
15,946
The Group
2015
$’000
2014
$’000
Minimum lease payments under operating lease included in profit or loss
4,215
4,980
34 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group activities expose it to market risk (including currency risk, interest rate risk and price risk), credit risk and
liquidity risk. Significant risks and events, supported by financial reports are highlighted through the monthly and
quarterly management reporting structure to the executive committee and audit committee respectively, who in turn
advises the board of directors. The board reviews and approves policies for managing each of these risks.
