Eng - IOI Group

Notes To The Financial Statements cont’d46. COMMITMENTS46.1 Capital CommitmentsGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Authorised capital expenditure not provided for in thefinancial statements- ContractedPurchase of property, plant and equipment 16,370 33,057 1,160 1,090Purchase of land held for property development 24,500 151,378 - -Construction in progress 57,666 669 - -- Not ContractedPurchase of property, plant and equipment 102,910 80,824 7,901 11,233New planting 6,379 5,163 3,704 2,87546.2 Operating Lease Commitments46.2.1 The Group as lesseeThe Group has entered into the following non-cancellable operating lease agreements:i. lease of a piece of land for a lease period of 50 years with a renewal term of 16 years which covers a net area of9,605 acres for cultivation of oil palm;ii.lease of a piece of land for a lease period of 60 years which covers a net area of 7,932 acres for cultivation of oilpalm;iii.lease of the office space for a lease period of 3 years with a renewal term of 3 years which covers built-up area of85,791 sq. ft.;iv.lease of storage tanks for a lease period of 2 years with a renewal term of 1 year; andv. lease of 2 pieces of land for a lease period of 50 years which cover a total net area of 22,015 sq. m for bulk cargoterminal and bulking installation.IOI Corporation BerhadANNUAL REPORT 2007 236