Malaysia legislation
Section 24
of Mengikut peraturan Bilangan 34 Peraturan-Peraturan Tanah Tahun 1966, adalah
Seksyen 24
BORROWINGS
The Group
The Company 2005 2004 2005 2004
Current:
Unsecured:
Bank overdraft 37,415,483 27,085,128 37,415,483 27,085,128
Revolving credits 9,045,030 9,043,153 5,045,030 5,043,153
Secured:
Term loan
—
4,095,694
—
4,095,694
Hire-purchase payables 275,000 275,000 259,200 259,200 46,735,513 40,498,975 42,719,713 36,483,175
Non-current:
Secured:
Hire-purchase payables 69,202 341,641 59,987 316,626
Total 46,804,715 40,840,616 42,779,700 36,799,801
22hb Jun 2006]
1675
The term loan of the Company is secured by legal charges over certain parcels of land belonging to the Company as disclosed in Note 16 and repayable by 20 equal quarterly instalments of RM2,818,786 (inclusive of interest) commencing October 2000.
The term loan was fully repaid during the financial year.
the average effective interest rates are as follows:
The Group and the Company 2005 2004
%
%
Term loan 8.40 8.40
Bank overdraft 7.25 7.25
Revolving credits 4.56 6.85
The non-current portion of the hire-purchase payables is repayable as follows:
The Group
The Company 2005 2004 2005 2004
Financial years ending
December 31:
2006
—
275,000
—
259,200 2007 69,202 66,641 59,987 57,426 69,202 341,641 59,987 316,626
It is the Group’s and the Company’s policy to acquire certain of the property, plant and equipment under hire-purchase arrangements. The average term for hire-purchase is about 3 to 5 years. For the financial year ended 31
December 2005, the average effective interest rate was 7.09% (also 7.09%
in 2004) per annum. Interest rates are fixed at the inception of the hire-purchase arrangements.
The Group’s and the Company’s hire-purchase payables are secured by the financial institutions’ charge over the assets under hire-purchase.