MKH Annual Report 2017

28. LOANS AND BORROWINGS (continued) Term loan II of RMNil (2016: RM5,334,754) is part of the total term loan of RM30,000,000 which is repayable by 8 equal quarterly principal instalments of RM3,750,000 each over 4 1/2 years commencing on the first day of the 33rd month following the date of first drawdown or payment by way of redemption whichever is earlier. Secured revolving credit I of RM49,444,000 (2016: RM39,744,000) is part of the total revolving credit of RM50,000,000 which is repayable by way of redemption upon the full settlement of secured revolving credit II. Secured revolving credit II of RM100,038,930 (2016: RM93,304,030) is part of the total revolving credit of RM110,000,000 which is repayable by 10 equal half yearly principal instalments of RM11,000,000 each over 8 years commencing on the first day of the 42nd month following the date of first drawdown or payment by way of redemption whichever is earlier. The term loans and revolving credits are secured and supported as follows: (a) legal charge over the freehold land for property development of a subsidiary; (b) corporate guarantee of the Company; (c) general debenture over a subsidiary; and (d) 3rd party specific debenture by way of fixed and floating charge over the land held for property development of subsidiary. Term loan III of RM190,544,167 (2016: RMNil) is repayable in 20 quarterly principal instalments commencing 9th month from the day of first drawdown. Secured revolving credit III of RM53,438,636 (2016: RMNil) is repayable on demand. The term loan and revolving credits are secured and supported as follows: (a) legal charge over the oil palm plantation land of a subsidiary in Indonesia; (b) pledged of shares of a subsidiary; and (c) corporate guarantee of the Company. Term loan IV of RMNil (2016: RM268,685,735) is repayable in 20 quarterly principal instalments commencing 27th month from the day of first drawdown and is secured and supported as follows: (a) facility agreement and security sharing agreement; (b) legal charge over the oil palm plantation land of a subsidiary in Indonesia; (c) deed of fiduciary by way of fixed and floating charge over the oil palm plantation in Indonesia; (d) charge over a designated bank account of a subsidiary in Indonesia; (e) corporate guarantee of the Company; (f) pledged of shares of a subsidiary; (g) assignment over all applicable insurance policies; and (h) negative pledge over a subsidiary’s assets. The term loan has been restructured to term loan III and secured revolving credit III during the year. Notes to the Financial Statements For the Financial Year ended 30 September 2017 173 MKH Berhad • Annual Report 2017