2018 UEM Edgenta Annual Report

36. RETAINED EARNINGS The Company may distribute dividends out of its entire retained earnings under the single tier system. 37. OPERATING LEASE COMMITMENTS The Group has entered into non-cancellable operating lease agreements for the use of premises and certain plant and machineries. These leases have an average tenure of between 3 and 5 years with renewal options up to 3 years and no purchase option included in the contracts. The Group also leases various plant and machinery under cancellable operating lease agreements. The Group is required to give a six-month notice for the termination of those agreements. The future aggregateminimum lease payments under non-cancellable operating leases contracted for at the reporting date but not recognised as liabilities, are as follows: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Future minimum rental payable of premises: Not later than 1 year 8,661 9,761 849 849 Later than 1 year and not later than 2 years 737 8,313 – 849 Later than 2 years and not later than 5 years 232 443 – – 9,630 18,517 849 1,698 Future minimum rental payable of equipment and others: Not later than 1 year 323 997 143 76 Later than 1 year and not later than 2 years 290 1,210 119 47 Later than 2 years and not later than 5 years 99 1,184 99 39 712 3,391 361 162 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2018 Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 230