McConnell Dowell 2018 Annual Review

McConnell Dowell Financial Statements 2018 31 Consolidated Consolidated All figures are in A$ 000’s 2018 Minimum Payments 2017 Minimum Payments 2018 Present value of payments 2017 Present value of payments 20. Commitments Finance lease commitments The future minimum lease payments under finance leases are as follows: - less than one year 33 3,126 31 2,949 - more than one year but less than five years 131 100 124 94 - more than five years 12 35 11 33 Total minimum lease payments 176 3,261 166 3,076 Less amounts representing finance charges (34) (139) (32) (131) PRESENT VALUE OF MINIMUM LEASE PAYMENTS 142 3,122 134 2,945 Operating lease commitments The future minimum lease payments under non-cancellable operating leases are as follows: - - less than one year 7,294 6,399 - more than one year but less than five years 19,258 13,756 - more than five years 5,152 2,592 TOTAL MINIMUM LEASE PAYMENTS 31,704 22,747 21. Contingent Liabilities Contingent liabilities at balance date, not otherwise provided for in the annual financial statements, arising from guarantees in the normal course of business from which it is anticipated that no material liabilities will arise: - Bank guarantees 58,126 115,346 - Letters of credit 4,918 7,305 - Insurance bonds 222,481 215,572 TOTAL CONTINGENT LIABILITIES 285,525 338,223 The Group has banking and bonding facilities of $464.6 million (2017: $601.0 million). The assets of the Group are pledged under a fixed and floating charge as security for the United Overseas Bank facility of $100.0 million. As at 30 June 2018 the Group had $179.0 million (2017: $262.8 million) available (unused) under these facilities. The Group sometimes has claims that arise out of engineering and construction contracts that have been made by or against the Group in the ordinary course of business. Please refer to Significant Accounting Judgements, Estimates and Assumptions in Note 1 for further information. The Group is subject to routine tax audits via the ATO in Australia and in certain other overseas jurisdictions. The ultimate outcome of any tax audit cannot be determined within any acceptable degree of reliability at this time. The Group believes that it is making adequate provision for its taxation liabilities (including amounts shown as current and deferred tax liabilities). However, there may be an impact to the Group if any revenue authority investigations results in an adjustment that increases the Group’s taxation liabilities. McConnell Dowell Annu l Review 1 67