Page 101 - ar2011

Notes to the Financial Statement
For the year ended 31st December 2011
NATURAL COOL HOLDINGS LIMITED
Annual Report 2011 99
25 Operating segments (Continued)
Major customer
Revenue from one customer of the Group’s Aircon segment represents approximately $11,099,000
(2010: $10,240,000) of the Group’s total revenue.
26 Determination of fair values
A number of Group’s accounting policies and disclosures require the determination of fair value,
for both fnancial and non-fnancial assets and liabilities. Fair values have been determined for
measurement and/or disclosure purposes based on the following methods. When applicable, further
information about the assumptions made in determining fair values is disclosed in the notes specifc
to that asset or liability.
Non-derivative fnancial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value
of future principal and interest cash fows, discounted at the market rate of interest at the reporting
date. For fnance leases, the market rate of interest is determined by reference to similar lease
agreements.
27 Operating Leases
Leases as lessee
Non-cancellable operating lease rentals are payable as follows:
Group
2011 2010
$ $
Within 1 year 9,916,189 6,795,341
Between one and fve years 25,228,332 23,492,998
After 5 years 27,992,725 32,670,595
63,137,246 62,958,934
The Group leases a number of warehouse and factory facilities under operating leases. The leases
typically run for a period of 1 to 10 years, with an option to renew the lease after that date. Lease
payments are usually increased upon renewal to refect market rentals. There is no contingent
rental.