1988 — Page 53

NOTES ON THE ACCOUNTS

18 UNDERTAKINGS FOR CHARGE OF PROPERTIES

The title deeds of certain of the Company's land, with a net book value of HK$9,576,000 at 31st December, 1988, have been deposited with certain banks together with agreements of undertaking to execute a legal mortgage in an event of default of the Company's obligations under the respective loan agreements.

At 31st December, 1988, the Company's liabilities covered by the above agreements of undertaking were HK$37,191,000 (1987- HK$66,460,000)

19 COMMITMENTS

a At 31st December, the Company had commitments under operating leases to make payments in

the next year as follows:

Leases expiring:

Within I year

After year but within 5 years

Land and Buildings

1988

HK$'000

1987 HK$'000

1,449

1,322

1.317

1.073

2,766

2.395

b Capital commitments outstanding at 31st December not provided for in the accounts were as

follows:

49

Contracted for

Authorised but not contracted for

1988

1987

HK$'000

HK$'000

290.155

64,884

2,350

52,608

292,505

117,492