30.
Commitments and contingent liabilities
30.1 Capital commitments a) As at 31 December 2017, the Company and its subsidiaries had capital commitments of approximately Baht 853 million and USD 1.5 million or approximately Baht 49 million and SGD 0.6 million or approximately Baht 14 million (2016: Baht 719 million) (the Company only: approximately Baht 1.2 million) relating to design and construction contracts of their projects and renovation works for food and beverage business. b) As at 31 December 2017, a subsidiaries had capital commitment of approximately Baht 526 million, relating to purchase of land. 30.2 Long-term land lease commitments On 28 December 2016, the Company entered into a land lease agreement with a company, to lease land for construction of office and retail space for rent. The land lease agreement grants a 30-year operating lease period. The Company paid a deposit for the leasehold rights of Baht 300 million and transferred the ownership of a condominium unit of its project and responsible for corporate income tax expenses of lessor of Baht 7 million. The land lease agreement specifies that the Company has commitments as follows: a)
To make advance payment for the long-term lease of Baht 1,148 million on the land delivery date in April 2018.
b)
The Company has to pay annual rental over the lease period of 30 years totaling Baht 1,804 million. Rental payment will commence on 1 April 2022 when is 4 years after land delivery date.
In addition, the Company has to pay a fund annually during 2036 - 2040 with a total amount of Baht 100 million. The fund will be used for building improvement or decommissioning cost after the expiry date of land lease agreement. 30.3 Operating lease commitments The Company and its subsidiaries have entered into several service agreements and lease agreements in respect of land, office building and retails space. The terms of the agreements are generally between 2 to 3 years.
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Raimon Land Public Company Limited