2008 Annual Report - Kenford Group Holdings Limited

Notes to the Financial Statements
For the year ended 31 March 2008
25. OBLIGATIONS UNDER FINANCE LEASES
The Group leases certain of machinery and equipment under finance lease, as the rental period amounts to the estimated
useful economic life of the assets concerned and often the Group has the right to purchase the assets outright at the end
of the minimum lease term by paying a nominal amount.
Future lease payments are due as follows:
2008 2007
Minimum
Minimum
lease Present lease Present
payments Interest value payments Interest value
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Not later than one year 2,681 (137) 2,544 2,245 (272) 1,973
Later than one year and not later
than fi ve years 2,664 (53) 2,611 3,700 (199) 3,501
5,345 (190) 5,155 5,945 (471) 5,474
The present value of future lease payments are analysed as:
2008 2007
HK$’000
HK$’000
Current liabilities 2,544 1,973
Non-current liabilities 2,611 3,501
5,155 5,474
The Group’s obligations under fi nance leases are secured by the lessor’s charge over the leased assets (Note 16(iv)).
70 KENFORD GROUP HOLDINGS LIMITED