33. COMMITMENTS Operating lease commitments Group as a lessor The Group lease out its warehouse to third parties and an associate under non-cancellable operating leases. These leases have a tenure range from 1 to 2 financial years with options to renew. Future minimum rentals receivables under non-cancellable operating leases as at the reporting date are as follows: Group 2024 2023 $’000 $’000 Not later than one financial year 1,858 959 Later than one financial year but not later than five financial years 1,242 – 3,100 959 34. FINANCIAL GUARANTEES As at 30 September 2024, the Company has issued corporate guarantees amounting to $151,894,000 (2023: $241,455,000) to banks for banking facilities of certain subsidiaries and associate. In addition, the Company has also issued corporate guarantees amounting to $11,400,000 (2023: $17,600,000) to financial institutions on performance bonds relating to the projects of its subsidiaries. The maximum amount of the Company could be forced to settle under the guarantees obligation if the full guaranteed amount is claimed by the counterparties to the guarantees, is $151,894,000 (2023: $241,455,000). The earliest period that the guarantees could be called is within 1 year from reporting date. As at 30 September 2024, the Group and the Company have accounted for a corporate guarantee liability of $894,000 (2023: $707,000) (Note 27). The Company has not recognised any liability in respect of the guarantees given to the banks for banking facilities granted to the subsidiaries and an associate as the Company’s directors have assessed that the likelihood of defaulting on repayment of its banking facilities are remote. However, this estimate is subject to change depending on the probability of the counterparty claiming under the guarantee which is a function of the likelihood that the financial receivables held by the counterparty which are guaranteed suffer credit losses. As at the end of the financial year, the Company had also given undertakings to certain subsidiaries to provide continued financial support to these subsidiaries to enable them to operate as going concerns and to meet their obligations as and when they fall due for at least 12 months from the financial year end. 35. SEGMENT INFORMATION For management reporting purposes, the Group is organised into four main operating divisions as follows: • The construction segment is in the business of general building contractors. • The property development segment is in the business of developing properties with other partners. The Group has investments in associates or joint ventures and available-for-sale financial assets which are special purpose entities set up for the purpose of property development. The returns from this segment is included in the “Share of results from associates or joint ventures”. • The investment property segment is in the business of leasing office and retail shops in two commercial buildings acquired in Osaka Japan. The Group has completed the disposal of its investment properties on 28 February 2023. • Investment holding segment is related to Group-level corporate services and investments in quoted and unquoted equity shares. 125 ANNUAL REPORT 2024 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2024
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