MKH Annual Report 2017

28. LOANS AND BORROWINGS (continued) Finance lease liabilities Finance lease liabilities are payable as follows: 2017 2016 Present Present Future value of Future value of minimum minimum minimum minimum lease Finance lease lease Finance lease payments charges payments payments charges payments The Group RM RM RM RM RM RM Less than one year 895,491 73,197 822,294 971,026 108,982 862,044 Between one and five years 1,203,428 51,608 1,151,820 2,007,968 115,806 1,892,162 2,098,919 124,805 1,974,114 2,978,994 224,788 2,754,206 The finance lease liabilities bear effective interest at rates ranging from 0.88% to 6.71% (2016: 0.88% to 16.00%) per annum. The term loans, bridging loan and revolving credits bear effective interest at rates ranging from 3.90% to 7.20% (2016: 3.85% to 7.20%) per annum. The bank overdrafts bear effective interest at rates ranging from 7.60% to 7.65% (2016: 5.11% to 8.10%) per annum. Unsecured bank overdrafts are supported by corporate guarantee of the Group and of the Company. Term loan I of RMNil (2016: RM975,000) is repayable by 40 quarterly principal instalments of RM325,000 each over 10 years commencing from the third month from the day of first drawdown and is secured and supported as follows: (a) legal charge over the leasehold land and building of a subsidiary; and (b) corporate guarantee of the Company; (c) deposit of titles of the freehold land held for property development of a subsidiary; and (d) debenture by way of fixed and floating charge over the freehold land held for property development and leasehold land and building of subsidiaries. The term loan has been fully settled during the year and leasehold land and building has been discharged on 21 November 2017. Notes to the Financial Statements For the Financial Year ended 30 September 2017 172 MKH Berhad • Annual Report 2017