Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

39. Commitments (contd.)
Notes to the Financial Statements
For the fi nancial year ended 31 December 2011
(b) Operating lease commitments - as lessee
In addition to prepaid land lease payments disclosed in Note 14, the Group has entered into operating
lease agreements for the use of land, buildings and certain plant and machinery. These leases have an
average life of between 1 and 13 years with no renewal or purchase option included in the contracts.
Certain contracts include escalation clauses or contingent rental arrangements computed based on
sales achieved while others include fi xed rentals for an average of 3 years. There are no restrictions
placed upon the Group by entering into these leases.
The Group also leases various plant and machinery under cancellable operating lease agreements.
The Group is required to give notice for the termination of those agreements.
The future minimum lease payments under operating leases contracted at reporting date are as follows:
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Not later than 1 year 3,843 3,051 1,373 1,188
Later than 1 year and not later than 5 years 8,131 8,118 915 -
Later than 5 years 17,798 19,007 - -
29,772 30,176 2,288 1,188
The lease payments recognised in profi t or loss during the fi nancial year is disclosed in Note 8.
(c) Operating lease commitments - as lessor
The Group has entered into an operating lease agreement on its investment property portfolio. This
lease has a remaining lease term of less than 5 years.
The future minimum lease payments receivable under the operating lease contracted for at the reporting
date are as follows:
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Not later than 1 year 548 660 150 600
Later than 1 year and not later than 5 years 431 979 - 150
979 1,639 150 750
Investment property rental income recognised in profi t or loss during the fi nancial year is disclosed in
Note 4.
Annual Report 2011 153