2018E — Page 159

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

26 CAPITAL COMMITMENTS

Capital commitments outstanding at 31 December 2018 not provided for in the financial statements were as follows:

Contracted for

Authorised but not contracted for

2018

HK$'000

2017

HK$'000

106,740

682,596

18,267

891

789,336

19,158

27 CONTINGENT LIABILITIES

Financial guarantees issued

At 31 December 2018, the Company has issued the following guarantees:

(a)

(b)

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

guarantees to banks in respect of banking facilities granted to its wholly-owned subsidiaries and a joint

venture.

Under the guarantees, the Company is liable to the amount due from the subsidiaries and the joint venture 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 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 and the joint venture, being HK$36,244,000 (2017: HK$90,000).

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

157

Annual Report 2018