inter roller fa final

Notes to the Financial Statements25 Operating lease commitments (Non-cancellable)The Group and The CompanyAt the balance sheet date, the Group and the Company were committed to making payments under noncancellablelease for its industrial land with a term of more than one year:2004 2003$ $Not later than one year 208,304 239,279Later than one year and not later than five years 833,217 1,094,784Later than five years 8,262,732 11,175,920The leases on the industrial land on which rentals are payable will expire on 1 November 2019 and 15 December2088, subject to an option to renew for another 30 years for the Company’s industrial land use. The currentrent payable is $17,359 per month which is subject to revision on renewal.26 Contingent liabilitiesThe Company(a)The Company has given a letter of financial support for a wholly owned subsidiary company, Inter-RollerEngineering Services Pte Ltd (formerly known as Refine Technology Pte Ltd), with a total net deficit ofapproximately $171,993 (2003 - $168,224) to continue to operate as a going concern and to meet itsrespective obligations as and when they fall due.(b) The Company has given corporate guarantees in favour of two banks for credit facilities of $3,248,500(2003 - $3,270,400) granted by the banks to a subsidiary company.27 Statement of operations by segmentsThe Group operates from its facilities in Singapore, Malaysia and United Arab EmiratesThe Group2004 2003Geographical Segments - by location of facilities $ $TurnoverSingapore 68,244,184 52,864,406Malaysia 7,115,475 3,429,924Other Countries 4,402,024 -Less: Inter-segment sales (9,905,733) (3,419,968)Consolidated turnover 69,855,950 52,874,362Operating profitSingapore 9,788,201 7,670,825Malaysia 912,370 94,707Other Countries 817,646 -Profit before taxation 11,518,217 7,765,532inter-roller engineering limited annual report2004 67