MKH Annual Report 2017

28. LOANS AND BORROWINGS (continued) Term loan VIII of RM6,561,274 (2016: RM9,461,274) is repayable by 84 monthly principal instalments commencing 19th month from the date of first drawdown or on 1 January 2014, whichever is earlier. The term loan is secured and supported as follows: (a) legal charge over the freehold land of a subsidiary; (b) a limited debenture by way of a fixed and floating charge over construction costs for a private and international school developed on the said freehold land; (c) legal assignment over a subsidiary and/or the customer’s rights and interest under an offer to lease and purchase; (d) legal assignment over all rents and other monies payables; and (e) corporate guarantee of the Company. Term loan IX of RM20,994,304 (2016: RM34,994,304) is repayable by 10 quarterly principal instalments of RM3,500,000 each commencing December 2016 and is secured and supported as follows: (a) legal charge over freehold land held for property development of a subsidiary; and (b) corporate guarantee of the Company. Term loan X of RM50,000,000 (2016: RM50,000,000) is repayable by 16 quarterly principal instalments of RM3,125,000 each commencing April 2019 and is secured and supported as follows: (a) legal charge over leasehold land held for property development of a subsidiary; (b) joint and several guarantee of the directors of a subsidiary; and (c) corporate guarantee of the Company. Term loan XI of RM15,044,980 (2016: RM16,874,981) is part of total term loan of RM22,000,000 which is repayable by 11 quarterly principal instalments of RM1,830,000 each and final payment of RM1,870,000 or any balance outstanding with the first repayment to commence on 39th month from the date of first reimbursement or payment by way of redemption whichever is earlier. Term loan XII of RM35,393,429 (2016: RM35,393,428) is part of the total term loan of RM40,000,000 which is repayable by 11 equal quarterly principal instalments of RM3,340,000 each and final payment of RM3,260,000 or any balance outstanding with the first repayment to commence on 39th month from the day of first reimbursement or payment by way of redemption whichever is earlier. The secured term loans are secured and supported as follows: (a) specific debenture over the project land of a subsidiary; (b) corporate guarantee of the Company; and (c) legal charge over freehold land held for property development of a subsidiary. Notes to the Financial Statements For the Financial Year ended 30 September 2017 175 MKH Berhad • Annual Report 2017