notes to financial statements - the grande holdings limited

52notes tofinancial statements31 December 200324. OBLIGATIONS UNDER FINANCE LEASESGroupPresent value ofMinimum leaseminimumpayments lease payments2003 2002 2003 2002HK$ HK$ HK$ HK$million million million millionAmounts payable underfinance leases:Within one year 10 12 9 11In the second year 9 12 9 11In the third to fifth years,inclusive – 5 – 519 29 18 27Less: future finance charges (1) (2) – –Present value of lease obligations 18 27 18 27Portion classified as current liabilities (9) (11)Non-current portion 9 16The average lease term is 3 years. During the year, the average effective borrowingrate was 3.07% (2002: 3.28%). Interest rates are fixed at the contract date. All leasesare on a fixed repayment basis and no arrangements have been entered into forcontingent rental payments.The Group’s obligations under finance leases are secured by the lessor’s charge overthe leased assets.25. ACCOUNTS AND BILLS PAYABLEThe aged analysis of accounts and bills payable is as follows:Group2003 2002HK$HK$million million0 – 3 months 792 7003 – 6 months 33 73Over 6 months 26 62851 835