MKH Annual Report 2018

174 MKH Berhad Annual Report 2018 28. LOANS AND BORROWINGS (Cont’d) Finance lease liabilities Finance lease liabilities are payable as follows: 2018 2017 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 792,448 61,545 730,903 895,491 73,197 822,294 Between one and five years 1,014,223 59,054 955,169 1,203,428 51,608 1,151,820 1,806,671 120,599 1,686,072 2,098,919 124,805 1,974,114 The finance lease liabilities bear e ective interest at rates ranging from 0.88% to 4.88% (2017: 0.88% to 6.71%) per annum. The term loans, bridging loan and revolving credits bear e ective interest at rates ranging from 4.47% to 5.87% (2017: 3.90% to 7.20%) per annum. The bank overdrafts bear e ective interest at rates ranging from 7.32% to 7.90% (2017: 7.60% to 7.65%) per annum. Secured revolving credit I of RM49,444,000 (2017: RM49,444,000) 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 RM78,038,930 (2017: RM100,038,930) 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. Secured revolving credit III of RM26,690,000 (2017: RMNil) is part of the total revolving credit of RM90,000,000 which is repayable by 18 equal quarterly principal instalments of RM5,000,000 each over 4 1/2 year commencing on the first day of the 31st month following the date of first drawdown or payment by way of redemption whichever is earlier. The 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. FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018 NOTES TO THE FINANCIAL STATEMENTS