DESTINI AR 2017

25. Bank Borrowings (Cont’d) Term loan I The term loans consist of the balances of Business Term loan of S$250,000 (RM775,150) obtained in July 2014 for working capital purposes. The term loan bears interest at a fixed rate of 6% per annum and repayable by 36 monthly instalments. The term loan is secured by corporate guarantee from the Company. Term loan II The term loan of RM200,000 obtained from a local bank bears interest at rate of 10.60% per annum repayable by 180 monthly installments of RM1,552 each commencing September 2014. The term loan is secured against facility agreement and 70% guarantee coverage by Syarikat Jaminan Pembiayaan Bhd (“SJPP”). It is also jointly and severally guaranteed by certain Directors of the Company. Term loan III The term loan is secured by way of a first legal charged on a freehold land and buildings of the Company at carrying amount of RM15,857,745. Interest charged on the facility at BLR plus 1.0% per annum. The term loan is repayable by monthly installments of RM97,934 over 10 years. Term loan IV and VII Term loan was denominated in RM, bore interest at 6.10% per annum. It was secured by the followings: (a) Deed of assignment of contract proceeds. (b) Debenture incorporating fixed and floating assets. (c) Corporate guarantee by the Company. Term loan V The term loan is secured by way of a first legal charge on a freehold land and buildings of the Company at carrying amount of RM4,814,476. Interest charged on the facility at BLR plus 1.75% per annum. The term loan is repayable by monthly installments of RM32,736 over 10 years. Term loan VI The term loans consist of: (a) RMB1,500,000 (RM968,550) with floating rate of 1.355% over benchmark interest rates of the loan prime rate (“LPR”) and is reprised at interval of 1 month for period of 12 months from December 2016 to December 2017. The effective interest rate at the end of the reporting period is 5.66% per annum. (b) RMB2,000,000 (RM1,291,400) with floating rate of 1.355% over benchmark interest rates of the loan prime rate (“LPR”) and is repriced at interval of 1 month for period of 12 months from December 2016 to December 2017. The effective interest rate at the end of the reporting period is 5.66% per annum. The term loan is secured by the charge over the land use right and leasehold property of the subsidiary in PRC. Term loan VIII The term loan amounted to S$3,500,000 (RM10,638,259) and bears interest at floating rate of 2.75% over prevailing rate per annum. The term loan is secured by ways of: (a) Fixed deposit of S$100,000 and interest accrued (RM2,551,660) of a subsidiary. (b) Corporate guarantee by the Company. The term loan is repayable by monthly installments of S$62,464 over 5 years 147 DESTINI BERHAD Annual Report 2017