2014 — Page 106

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

26

CAPITAL AND OTHER COMMITMENTS

27

Capital and other commitments outstanding at 31 December 2014 not provided for in the Group's consolidated financial statements were as follows:

Contracted for

Authorised but not contracted for

CONTINGENT LIABILITIES

Financial guarantees issued

At 31 December 2014, the Company has issued the following guarantees:

2014

HK$'000

2013

HK$'000*

162,833

706,721

80,146

59,580

242,979

766,301

(a)

guarantees to certain suppliers in respect of granting or giving credit facilities to its wholly-owned subsidiaries; and

(b)

guarantees to bank in respect 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 end of the reporting period, 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 end of the reporting period under the guarantees issued above is the outstanding amount due to the relevant suppliers by its wholly-owned subsidiaries, being HK$662,000 (2013: HK$1,119,000).

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.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2014