Hong Kong Ferry (Holdings) Company Limited Annual Report 2013
Notes to the Accounts (Continued)
115
27 CONTINGENT LIABILITIES
Financial guarantees issued
At 31 December 2013, the Company has issued the following guarantees:
(a)
guarantees to certain suppliers in respect of granting or giving credit facilities to its wholly-owned subsidiaries;
and
(b) guarantees to bank in respective of banking facilities granted to its wholly-owned subsidiaries.
Under the guarantees, the Company is liable to the amount due from the subsidiaries to these respective parties in the event of any default and its liability shall at no time exceed the sum stated on the letters of guarantee.
At the balance sheet date, the directors do not consider it probable that a claim will be made against the Company under any of the guarantees. The maximum liability of the Company at the balance sheet date under the guarantees issued above is the outstanding amount due to the relevant suppliers by its wholly-owned subsidiaries, being
HK$1,119,000 (2012: HK$1,115,000).
The Company has not recognised any deferred income in respect of the guarantees issued as its fair value cannot be reliably measured using observable market data and its transaction price was HK$Nil.