DESTINI Annual Report 2018

25. Bank Borrowings (Cont’d) Term loan VIII The term loan amounted to S$3,500,000 (equivalent to 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 (equivalent to 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. 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 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. 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: NOTES TO THE FINANCIAL STATEMENTS Group Company 2018 2017 2018 2017 % % % % Bank overdrafts 5.10 - 8.25 4.90 - 7.96 - - Trust receipts 8.70 - 9.15 8.90 - 9.35 - - Term loans 6.90 - 12.9 6.80 - 12.9 6.95 6.95 DESTINI BERHAD ANNUAL REPORT 2018 170