GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 138 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 29. CONTINGENT LIABILITIES (cont’d) At the end of the reporting period, the Group assesses whether its recognised insurance liabilities are adequate, using current estimates of future cash flows under its insurance contracts. If this assessment shows that the carrying amount of the insurance liabilities is inadequate, the entire deficiency shall be recognised in profit or loss. Recognised insurance liabilities are only removed from the statement of financial position when, and only when, it is extinguished via a discharge, cancellation or expiration. The Directors are of the view that the chances of the financial institutions to call upon the corporate guarantees are remote. 30. COMMITMENTS (a) Operating lease commitments (i) The Group as a lessee The Group had entered into lease agreements for premises. Group 2018 2017 RM RM Not later than one (1) year 925,640 1,089,151 Later than one (1) year and not later than five (5) years 1,497,762 2,102,735 More than five (5) years - 1,400 2,423,402 3,193,286 (ii) The Company as a lessee The Company had entered into lease agreements for premises. Company 2018 2017 RM RM Not later than one (1) year 22,200 29,400 Later than one (1) year and not later than five (5) years - 14,800 22,200 44,200