Notes To The Financial Statements (Cont’d) 31 March 2026 SECTION 05 : FINANCIAL STATEMENTS & OTHERS 150 Registration No: 72 199201005296 (236800 - T) 18. OTHER BORROWINGS Group Company 2026 2025 2026 2025 Note RM’000 RM’000 RM’000 RM’000 Revolving credits 12,500 5,000 12,500 5,000 Financial guarantee contract (b) - - 378 515 Mezzanine loans: - Directors and persons connected to the directors 6,366 23,151 6,366 25,751 - Officer 500 - 500 - - Non-bank moneylender 6,000 2,600 6,000 - Total other borrowings 25,366 30,751 25,744 31,266 (a) The other borrowings of the Group and of the Company relate to trade and working capital credit facilities that are secured as follows: (i) The mezzanine loan obtained from a non-bank moneylender is guaranteed by a corporate guarantee provided by a subsidiary of the Company, whereas the mezzanine loans obtained from Directors, persons connected to the Directors and officers are unsecured; and (ii) Revolving credits are secured by charge of fixed deposits as disclosed in Note 10(b) to the financial statements and charge of inventory as disclosed in Note 7(f) to the financial statements. (b) Financial guarantee contract is a contract that requires the Company to make specified payments to reimburse the holder for the loss it incurs when a specified debtor fails to make payments as and when they fall due. Financial guarantee contract issued is initially measured at fair value. Subsequently, it is measured at higher of: (i) the amount of the loss allowance; and (ii) the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance to the principles of MFRS 15, Revenue from Contracts with Customers. The fair value of financial guarantee contract is determined as the present value of the difference in net cash flows between the contractual payments under the debt instrument and the payments that would be required without the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations. Financial guarantee contract is subject to forward looking expected credit loss model based on the general approach within MFRS 9 as disclosed in Note 8(h) to the financial statements.
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