Megachem Limited Annual Report 2015 123 Notes to the Financial Statements 31 December 2015 26. Contingent liabilities The Company has provided an undertaking to provide continuing financial support to subsidiaries, MG Chemicals (Australia) Pty Ltd, Megachem (Shanghai) Pte Ltd, MGI Chemicals Private Limited and Megachem Middle East FZE, to enable the subsidiaries to meet their obligations as and when they fall due. As at 31 December 2015, the net liabilities of MG Chemicals (Australia) Pty Ltd, Megachem (Shanghai) Pte Ltd, MGI Chemicals Private Limited and Megachem Middle East FZE amounted to $1,479,000 (2014: $949,000), $419,000 (2014: $783,000), $761,000 (2014: $973,000) and $86,000 (2014: $84,000) respectively. The Company has also provided corporate guarantee to banks for subsidiaries’ and associated company’s loans. The corporate guarantees are as follows: Group Company 2015 2014 2015 2014 $’000 $’000 $’000 $’000 Corporate guarantees provided to banks on subsidiaries’ loans payable – – 8,439 6,805 Corporate guarantees provided to banks on associated company’s loans payable 1,296 1,463 1,296 1,463 27. Operating lease payment commitments – as lessee At the reporting date the total of future minimum lease payments under non-cancellable operating leases are as follows: Group Company 2015 2014 2015 2014 $ $ $ $ Not later than one year 167,615 288,241 77,185 69,363 Later than one year and not later than five years 670,462 857,671 308,742 277,452 Later than five years 5,495,448 5,440,756 2,469,934 2,288,975 The leasehold land, on which the Company’s building is situated, is under a non-cancellable operating lease expiring in 2053. The annual land rent payable is subject to annual revision. 28. Capital commitments At the reporting date the capital commitments are as follows: Group Company 2015 2014 2015 2014 $ $ $ $ Purchase of plant and equipment 271,811 – 157,000 –
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