33 COMMITMENTS
The Group leases offices, warehouses and a number of retail outlets under operating leases. The leases typically run for an
initial period of two to five years, with an option to renew the lease after that date. Lease payments are usually increased
annually to reflect market rentals.
At 31 December 2015, the Group and the Company have commitments for future minimum lease payments under non-cancellable
operating leases as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Payable:
Within 1 year
4,560
3,645
1,191
1,162
After 1 year but within 5 years
6,847
6,592
3,548
4,137
11,407
10,237
4,739
5,299
34 CONTINGENT LIABILITIES
The Company issued corporate guarantees amounting to $18,118,000 (2014: $17,257,000) in favour of subsidiaries to cover
purchases and bank facilities per the terms of the agreements.
35 SUBSEQUENT EVENTS
• On 14 January 2016, a subsidiary of S & I Systems Pte Ltd, U Computing Pte. Ltd., was struck off from the Register of
Companies pursuant to Section 344(4) of the Singapore Companies Act, Chapter 50.
• On 26 February 2016, the directors proposed a final dividend of 1.6 cents per ordinary share (one-tier tax exempt) in respect
of financial year ended 31 December 2015. The proposed final dividend amounting to $7,271,000 has not been recognised
as at year end and is subject to shareholders’ approval at the forthcoming Annual General Meeting of the Company in 2016.
118
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
NOTES TO THE
FINANCIAL STATEMENTS
