ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) E5 Commitments and contingent liabilities (i) Capital commitments Group 2020 2019 $’000 $’000 Capital expenditure contracted but not provided in the financial statements 54,455 62,670 (ii) Leases – As lessee As at 31 December 2020, the Group had certain non-cancellable future minimum lease payments for short-term leases or leases for low-value assets amounting to $2,618,000 (31 December 2019: $3,110,000). (iii) Leases – As lessor The Group has entered into non-cancellable operating leases on its aircraft, aircraft engines and certain property, plant and equipment. The lease terms range from 1 to 15 years. The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date. Group 2020 2019 $’000 $’000 Less than 1 year 9,012 10,758 1 to 2 years 4,651 6,509 2 to 3 years 3,589 5,556 3 to 4 years 3,565 5,510 4 to 5 years 1,147 3,088 More than 5 years 848 9,725 Total undiscounted lease payments 22,812 41,146 (iv) Contingent liabilities (unsecured) The Group is a party to various claims that arise in the normal course of the Group’s business. The total liability on these matters cannot be determined with certainty. However, in the opinion of management, the ultimate liability, to the extent not otherwise provided for, will not materially impact the consolidated financial statements of the Group. 24 7 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT