81
Straco Corporation Limited • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
23
Commitments
As at 31 December, the Group had commitments for future minimum lease payments under non-cancellable operating leases as follows:
Group
2014
2013
$
$
Within 1 year
2,554,658
699,280
After 1 year but within 5 years
10,314,482
2,855,368
After 5 years
69,735,049
14,554,190
82,604,189
18,108,838
The Group leases office premises and residential premises for its expatriate staff and various office equipment under operating leases. The leases
typically run for a period of one to five years, with an option to renew the lease after that date. None of the leases include contingent rentals.
Shanghai Ocean Aquarium Co Ltd entered into an agreement for a land use right for a period of 40 years from 18 November 1997 to 17 November
2037. Rental is fixed at a percentage of its total revenue and is payable annually.
Underwater World Xiamen Co Ltd entered into an agreement for a land use right with its co-operative partner in the PRC for a period of 40 years from
11 October 1994 to 10 October 2034. The annual rental shall increase 10% every 4 years until the end of the lease period.
Straco Leisure Pte Ltd had a lease agreement for a plot of land for a period of 20 years 7 months from 28 Nov 2014 to 4 July 2035 with an option to
renew for a further 15 years. The annual rental is fixed for the duration of the current lease.
24
Related parties
Transactions with directors and key management personnel
Total key management personnel compensation and directors’ fees are disclosed in note 20.
25
Financial risk management
Financial risk management objectives and policies
Exposure to credit, liquidity and market risk arises in the normal course of the Group’s business. The Group has established risk management policies
and guidelines which set out its overall business strategies, its tolerance of risk and its general risk management philosophy. Such established policies
are reviewed annually by the Group’s management and periodic reviews are undertaken to ensure that the Group’s policy guidelines are adhered to.
