NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  29.  Commitments and contingencies (cont’d) Finance lease commitments Capital commitments Investment commitments Letter of credits Product liability (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  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: 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. 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. 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. 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. China Yuchai International Limited | Annual Report 2013 110 31.12.2013 Minimum lease payments Present value of payments Rmb’000 Rmb’000 Not later than one year 13 13 Later than one year but not later than five years 44 43 Total minimum lease payments 57 56 Less: Amount representing finance charges (1) —  Present value of minimum lease payments 56 56