Annual Report 2012 - IOI Group

NOTES TO THEFINANCIAL STATEMENTS43. COMMITMENTS (Continued)43.2 Operating Lease Commitments43.2.1 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 areaof 9,605 acres for cultivation of oil palm;ii.iii.iv.lease of a piece of land for a lease period of 60 years, which covers a net area of 7,932 acres for cultivation ofoil palm;lease of office space for a lease period of 3 years with a renewal term of 3 years, which covers a built-up areaof 85,791 sq. ft.;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 bulkcargo terminal and bulking installation.The future aggregate minimum lease payments under non-cancellable operating leases contracted for as at end ofthe reporting period but not recognised as liabilities are as follows:Group2012RM’0002011RM’000Not later than 1 year 5,804 8,100Later than 1 year and not later than 5 years 10,219 11,680Later than 5 years 111,736 113,453127,759 133,23343.2.2 The Group as lessorThe Group has entered into non-cancellable operating lease agreements on its investment properties. These leaseshave remaining non-cancellable lease terms of between 2 – 9 years. The Group also entered into long term propertyleases on its future property investment land.The minimum lease payments receivable under non-cancellable operating leases contracted for as at end of thereporting period but not recognised as receivables are as follows:Group2012RM’0002011RM’000Not later than 1 year 77,783 63,478Later than 1 year and not later than 5 years 64,464 32,631Later than 5 years 6,542 7,248148,789 103,357248IOI CORPORATION BERHADAnnual Report 2012