Annual Report 2016
107
18. Loans and borrowings (Cont’d)
18.1 Interest/Profit rate (Cont’d)
Company
Term loans
The term loans for the Company are subject to the following:
i) At an interest of 4.50% (2015: 4.50%) per annum;
ii) 3 months KLIBOR plus 0.70% to 1.35% (2015: 0.66% to 1.35%) per annum; and
iii) KLIRR plus 1.25% (2015: 1.25%) per annum.
The term loans for the Company are repayable in equal monthly instalments over periods ranging from 1 to 5
years (2015: 1 to 5 years).
Revolving credit
The revolving credit is subject to interest of monthly COF plus 0.85% or KLIBOR plus 1.25% (2015: 0.85% to
1.25%).
18.2 Security
Group
Term loans, bank overdrafts, bills payable and revolving credit
Unsecured
The term loans are supported by way of:
i) corporate guarantees by the Company; and/or
ii) a negative pledge on all assets of the Company.
Significant covenants for certain term loans, bank overdrafts and bills payable granted to the Group and
the Company:
i) dividend payment shall not exceed current year net profit after tax of the Company;
ii) maximum gearing of 2.0 times of the Group at all times; and
iii) minimum debt service cover ratio of 1.25 times of the Group.
Company
Term loans
Unsecured
The term loans are supported by way of a negative pledge over the assets of the Company.
Notes to the Financial Statements
(Cont’d.)
