2015 — Page 127

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

26

CAPITAL COMMITMENTS

27

Capital commitments outstanding at 31 December 2015 not provided for in the financial statements were as follows:

Contracted for

Authorised but not contracted for

CONTINGENT LIABILITIES

Financial guarantees issued

At 31 December 2015, the Company has issued the following guarantees:

2015

HK$'000

2014

HK$'000

208,307

162,833

891

80,146

209,198

242,979

(a)

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

(b)

guarantees to a 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 parties by its wholly-owned subsidiaries, being HK$645,000

(2014: HK$662,000).

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$NiI.

Hong Kong Ferry (Holdings) Company Limited

125

Annual Report 2015