content_image/189940.jpg
## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

(RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA) 

## 29. Commitments and contingencies (cont’d) 

## Finance lease commitments 

The Group has finance lease for an item of plant and equipment. This lease has term of renewal but no purchase options and escalation clause. Renewal is at the option of the Group. 

Future minimum lease payments under finance lease together with the present value of the net minimum lease payments are as follows: 

<img src='content_image/189940.jpg'>

## Capital commitments 

As of December 31, 2012 and 2013, Yuchai had capital expenditure (mainly in respect of property, plant and equipment) contracted for but not recognized in the financial statements amounting to Rmb 896.2 million and Rmb 885.7 million (US$144.7 million), respectively. The Group’s share of joint venture’s capital commitment is disclosed in Note 6. 

## Investment commitments 

As of December 31, 2012 and 2013, the Group has commitment of Rmb 14.4 million and Rmb 9.0 million (US$1.5 million) relating to the Group’s interest in joint ventures, respectively. 

## Letter of credits 

As of December 31, 2012 and 2013, Yuchai had issued irrevocable letter of credits of Rmb 35.7 million and Rmb 84.1 million (US$13.7 million), respectively. 

## Product liability 

The General Principles of the Civil Law of China and the Industrial Product Quality Liability Regulations imposes that manufacturers and sellers are liable for loss and injury caused by defective products. Yuchai and its subsidiaries do not carry product liability insurance. Yuchai and its subsidiaries have not had any significant product liability claims brought against them. 

