DESTINI AR 2017

25. Bank Borrowings (Cont’d) Term loan IX The term loan amounted to RM50,000,000 and bears interest at rate of 1.75% per annum above the bank’s cost of funds. The term loan is repayable by 30 monthly instalments commencing from May 2017. Term loan X The bank borrowing-Import financing bears interest at rate of cost of fund plus 2.58% per annum and repayable by milestone payment from contract proceeds. The maturity date of the bank borrowing is up to 22 months from the date of first disbursement, 3 April 2017. The bank borrowing is secured by ways of: (a) Deed of assignment of contract proceeds and project account. (b) Debenture incorporating fixed and floating assets. (c) Personal guarantee by a Director and a former Director of the Company. (d) Corporate guarantee by the Company. (e) Charge over shares and any future shares of the subsidiary Company. Bank overdraft Bank overdraft is secured by the following: (a) Fixed deposit pledged to licensed banks. (b) jointly and severally guarantee by certain Directors. Trust receipts Trust receipts are secured by the following: (a) Fixed deposit pledged to licensed banks. (b) Jointly and severally guarantee by certain Directors. (c) Corporate guarantee by the Company. Range of interest rates during the financial year is as follows: Group Company 2017 2016 2017 2016 % % % % Bank overdrafts 4.90 - 7.96 4.90 - 7.88 - - Trust receipts 8.90 - 9.35 8.90 - 9.20 - - Term loans 6.80 - 12.9 6.80 - 13.20 6.95 6.85 Maturity of bank borrowing is as follows: Group Company 2017 2016 2017 2016 RM RM RM RM Within one year 30,898,806 18,480,669 4,025,600 5,898,726 Between one to two years 137,040,700 23,461,084 45,483,792 21,720,068 Between two to five years 8,476,349 39,946,908 8,438,270 34,720,375 More than five years 97,631 438,678 - 176,513,486 82,327,339 57,947,662 62,339,169 148 DESTINI BERHAD Financial Statements Notes to the 31 December 2017