HKSI Institute AR2023

HKSI Institute Annual Report 2023 76 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (Expressed in Hong Kong dollars unless otherwise indicated) 20 COMMITMENTS (a) Capital commitments outstanding at 31 March 2023 not provided for in the financial statements were as follows: 2023 2022 Contracted for $ 320,436 $ 3,495,279 $ 320,436 $ 3,495,279 (b) Total future minimum lease payments under non-cancellable operating leases were payable as follows: 2023 2022 Within 1 year $ 87,812 $ 40,929 $ 87,812 $ 40,929 21 CONTINGENT LIABILITY A part of the grants received by the Institute from the SFC is subject to a repayment clause. The Institute is required to repay HK$5 million or the total grant received, whichever is lower, to the SFC in any given year upon the Institute’s attainment of a reserve (i.e. the General Fund of the Institute) amounting to the higher of (a) HK$50 million or (b) two years of operating expenses, as reflected in the Institute’s annual accounts. Based on a 5 year forecast regarding the financial performance of the Institute, the management do not believe it probable that the Institute will attain the level of reserve that will trigger the repayment clause in the foreseeable future. No provision has therefore been made in respect of the repayment. 22 MATERIAL RELATED PARTY TRANSACTIONS Apart from the balances disclosed elsewhere in these financial statements, the Institute received annual membership fees of HK$4,980 (2022: HK$19,700) from the directors of the Institute during the year.