DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 27. Bank Borrowings (Cont’d) Term loan VI The term loans consist of: (a) RMB1,500,000 (equivalent to 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. The effective interest rate at the end of the reporting period is 5.66% per annum. (b) RMB2,000,000 (equivalent to 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. 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 SGD3,500,000 (equivalent to RM10,638,259) bears interest at floating rate of 2.75% over prevailing rate per annum and is repayable by monthly installments of SGD62,464 over 5 years. The term loan is secured by ways of: (a) Fixed deposit of SGD100,000 and interest accrued (equivalent to RM2,551,660) of a subsidiary; and (b) Corporate guarantee by the Company. 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; and (e) Charge over shares and any future shares of the subsidiary. Term loan XI The bank borrowings consist of loan of SGD600,000 with interest at effective interest rate of 5% per annum and revolving capital bank loan of SGD125,778 with interest at effective interest rate of 8% per annum for the purpose of working capital. The bank borrowings are repayable within 60 months from December 2019 and are secured by the following: (a) Corporate guarantee by a subsidiary company; and (b) Charge over all sums in current account and receivables. Bank overdraft Bank overdraft is secured by the following: (a) Fixed deposit pledged to licensed banks; and (b) jointly and severally guarantee by certain Directors. 06 FINANCIAL STATEMENTS DESTINI BERHAD 166