NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 28 28. COMMITMENTS AND CONTINGENCIES           28.1 OPERATING LEASE COMMITMENTS     The Group has entered into the following material lease agreements in South Africa for premises used as offices and distribution centres for pharmaceutical products. These leases represent more than 95% of the lease commitments of the Group.       Lease 1 New Road   Lease 2 Durban   Lease 3 Cape Town       Initial lease period (years) 10   12   10       Ending 30 November 2021   31 October 2022   31 August 2022       Renewal option period (years) 10   10   5       Ending 30 November 2031   31 October 2032   31 August 2027       Escalation % 7.3%   8.5%   7.0%       The India leases have not been included in the operating lease commitments, as the India business has been classified as a discontinued operation held-for-sale during the current financial year (refer to note 2.1).     Future minimum rentals payable under all non-cancellable operating leases are as follows:       2016 R’000   2015 R’000       Within one year 36 028   34 957       After one year but not more than five years 170 620   166 228       More than five years 39 516   86 574         246 164   287 759     28.2 CAPITAL COMMITMENTS             Commitments contracted for                Within one year 11 362   7 000       Approved but not contracted for                Within one year 38 577   33 026         49 939   40 026       These commitments relate to property, plant and equipment           28.3 GUARANTEES             The Group has provided guarantees to the amount of R6.2 million at 30 June 2016 (June 2015: R15.7 million of which R12.7 million relates to a supplier in India.)         NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 28