Page 447 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure
Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

17 Leases as a lessee

The Group leases a number of land, buildings and equipment for 2-55 years, with extension options at the
end of lease term. The rental is payable monthly as specified in the contract.

During 2021, the Group leased land, buildings and equipment for 2-30 years and paid fixed and variable
lease payment that are based on sales and usage over the lease term. These payment terms are common in
Thailand.

Extension options
The Group has extension options on property leases exercisable up to one year before the end of the
contract period. The Group assesses at lease commencement date whether it is reasonably certain to
exercise the extension options and will regularly reassess so.

Consolidated Separate
financial statements financial statements
For the year ended 31 December 2021 2020 2021 2020
(in million Baht)
Amounts recognised in profit or loss
Sub-lease income 132 132 - -
Depreciation of right-of-use assets:
- Land improvement 1,158 1,13 2 - -
- Buildings 8,162 8,056 25 20

- Information system equipment - 1 - -
- Office equipment 33 41 - -
Interest on lease liabilities 1,947 1,80 0 - 1
COVID-19 related rent concessions (532) (50 5) - -
Expenses relating to short-term leases 287 132 10 8
Variable lease payments based on sales 407 812 - -

In 2021, total cash outflow for leases of the Group and the Company were Baht 9,268 million and Baht
25 million, respectively. (2020: Baht 8,081 million and Baht 20 million, respectively).

18 Leases as a lessor

The leases of investment properties comprise a number of buildings that are leased to related parties under
operating leases. Each of the leases contains an initial non-cancellable. Subsequent renewals are
negotiated with the lessee. Rental income as specified in the agreements.

The Group has leased a land for 55 years. During 2020, the Group entered into sub-leases of land for 40
years which were classified as finance lease receivables, and reclassified related right-of-use assets to
investment properties.

Lease payments to be received from finance lease Consolidated
receivables financial statements
At 31 December 2021 2020
(in million Baht)
st
1 year 705 674
nd
2 year 9 109
3 year 110 9
rd
4 year 10 110
th
5 year 110 10
th
After 5 year 4,049 4,159
th
Total 4,993 5,071

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Annual Report 2021 (Form 56-1 One-Report) 447