Sasbadi Annual Report 2018

SASBADI HOLDINGS BERHAD (1022660-T) FINANCIAL STATEMENTS 134 25. Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows: Group 2018 2017 RM’000 RM’000 Less than one year 330 303 Between one and three years 175 18 505 321 The Group leases a number of office premises under operating leases. The leases typically run for a period of one to three years, with an option to renew the lease after the date of expiration. None of the leases includes contingent rentals. Leases as lessor The Group leases out its investment properties (see Note 4). The future minimum lease receivables under non-cancellable leases are as as follows: Group 2018 2017 RM’000 RM’000 Less than one year 60 46 Between one and five years 55 - 115 46 26. Contingencies The Directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement. Group Company Note 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Bank guarantees obtained by the Group to the Ministry of Education 26.1 598 643 - - In respect of corporate guarantees issued for subsidiaries - - 40,693 32,188 26.1 As part of the agreements with the Ministry of Education, the Group has issued performance bond in the form of bank guarantees to the Ministry of Education for the supply of text books and applied learning products.