CAHYA MATA SARAWAK ANNUAL REPORT 2016

175 Cahya Mata Sarawak Berhad A N N U A L R E P O R T 2 0 1 6 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 37. COMMITMENTS (a) Capital commitments Capital expenditures as at the reporting date were as follows: Group Company 2016 2015 2016 2015 RM’000 RM’000 RM’000 RM’000 Approved and contracted for: - Property, plant and equipment 22,577 33,598 - - - Intangible assets - 700 - - - Investment properties - 35,565 - - - Investment in joint ventures 2,103 5,704 - - 24,680 75,567 - - Approved but not contracted for: - Property, plant and equipment 268,346 202,923 40 2,576 - Intangible assets 1,225 1,374 - 340 - Investment properties - 13,247 - - - Investment in associates 352,000 340,171 - - - Investment in joint ventures 6,667 6,667 - - 628,238 564,382 40 2,916 652,918 639,949 40 2,916 (b) Operating lease commitments - as lessee In addition to prepaid land lease payments disclosed in Note 14, the Group and the Company have 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 20 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 fixed 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 were as follows: Group Company 2016 2015 2016 2015 RM’000 RM’000 RM’000 RM’000 Not later than 1 year 7,699 6,573 787 1,104 Later than 1 year and not later than 5 years 20,073 18,283 695 297 Later than 5 years 31,407 33,430 - - 59,179 58,286 1,482 1,401 The lease payments recognised in profit or loss during the financial year is disclosed in Note 8.