directors - The Lion Group

45. CAPITAL COMMITMENTS
As of the end of the financial year, the Group and the Company have the following capital commitments:
98
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Approved and contracted for:
Acquisition of land 100,366 100,366 – –
Acquisition of plant and machinery 16,816 21,149 – –
117,182 121,515 – –
Approved but not contracted for:
Acquisition of plant and machinery 10,084 18,809 – –
Plantation development expenditure 15,527 16,944 – –
25,611 35,753 – –
142,793 157,268 – –
In addition, as mentioned in Note 2, the Group has entered into a conditional sale and purchase of shares
agreement for the acquisition of the entire shareholding in Silverstone Berhad for a purchase consideration of
RM225,000,000.
46. FINANCIAL INSTRUMENTS
Financial Instruments
The principal financial assets of the Group are deposits and bank balances, trade and other receivables.
The significant financial liabilities include trade and other payables, bank borrowings, LICB Bonds and USD
Debts.
Debts and equity instruments are classified as either liabilities or equity in accordance with the substance of the
contractual arrangement.
Bank borrowings are recorded at the proceeds received. Finance charges are accounted for on an accrual basis.
Equity instruments are recorded at the proceeds received net of direct issue costs.
The accounting policies applicable to the major financial instruments are as disclosed in Note 4.