Page 102 - ar2011

NATURAL COOL HOLDINGS LIMITED
Annual Report 2011 100
Notes to the Financial Statement
For the year ended 31st December 2011
27 Operating Leases (Continued)
Leases as lessor
The future minimum lease receivables under non-cancellable leases are as follows:
Group
2011 2010
$ $
Within 1 year 5,162,985 3,473,789
Between one and fve years 3,024,387 1,838,040
8,187,372 5,311,829
During the year ended 31 December 2011, $4,457,509 (2010: $3,551,087) of income arising from
investment properties was recognised in proft or loss by the Group.
28 Capital commitments
As at 31 December 2011, a subsidiary of the Group has outstanding capital expenditure to purchase
property, plant and equipment amounting to $4,085,000 (2010: $1,520,000).
29 Contingencies
Group Company
2011 2010 2011 2010
$ $ $ $
Corporate guarantees
Banking facilities corporate guarantee – – 30,349,644 28,704,794
Unsecured guarantees given to banks
for issuance of the performance bonds
on behalf of subsidiaries 330,000 650,000 330,000 650,000
Corporate guarantee given to a trade
creditor of a subsidiary – – 893,236 2,325,219
Corporate guarantee given to a trade
customer of a subsidiary – 405,555 – 404,555
Intra-group fnancial guarantees as disclosed above will expire when the loans have been paid and
discharged and/or when the banking facilities are no longer available to the subsidiaries, delivery of
contracts with customers and suppliers. These fnancial guarantee contracts are accounted for as
insurance contracts.
The principal risk to which the Company is exposed is the credit risk in connection with the
guarantee contracts it has issued. The credit risk represents the loss that would be recognised upon
a default by the subsidiary to which the guarantee was given for the beneft of.
There are no terms and conditions attached to the guarantee contract that would have a material
effect on the amount, timing and uncertainty of the Company’s future cash fows.
The intra-group fnancial guarantee is eliminated in preparing the consolidated fnancial statements.