Annual Report 2012 - e-KONG Group Limited

e-KONG GROUP LIMITEDNotes to the Consolidated Financial Statements (continued)For the year ended 31 December 201235. COMMITMENTS AND CONTINGENCIESCommitments under operating leasesAt the end of the reporting period, the total future minimum lease payments in respect of land and buildingsunder non-cancellable operating leases were payable as follows:ConsolidatedCompany2012 2011 2012 2011HK$’000 HK$’000 HK$’000 HK$’000Within one year 9,653 7,081 4,738 4,738In the second to fifth year inclusive 8,896 9,093 3,092 7,829More than five years 1,004 – – –19,553 16,174 7,830 12,567Operating lease payments mainly represent rentals payable for certain office premises and directors’ quarters.Leases are negotiated for and rentals are fixed for an average of 2 to 5 years.LitigationA jointly-controlled entity is involved in certain legal actions and claims arising in the ordinary course of business,subject to which certain representations, warranties and indemnities are provided by a subsidiary. Managementbelieves that it is remote that the outcome of such litigation and claims will have a material effect on the Group’sfinancial position.88Annual Report 2012