MKH Annual Report 2018

175 MKH Berhad Annual Report 2018 28. LOANS AND BORROWINGS (Cont’d) Term loan I of RM7,724,980 (2017: RM15,044,980) 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 II of RM22,033,429 (2017: RM35,393,429) 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. Term loan III of RM30,178,625 (2017: 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 IV of RM7,898,025 (2017: RMNil) is part of total term loan of RM27,500,000 and is repayable by 8 quarterly principal instalments of RM3,437,500 each and commencing 27 months from the date of the disbursement or by way of redemption whichever is earlier. Secured revolving credit IV of RM10,000,000 (2017: RMNil) is repayable by 4 quarterly principal instalments of RM2,500,000 each and commencing 39 months from the date of the disbursement. The term loan and revolving credit are secured and supported as follows: (a) legal charge over the leasehold land of a subsidiary; (b) specific debenture over the project land; (c) assignment over all applicable insurance policies; (d) deed of assignment over Designated Accounts to be maintained with bank; and (e) corporate guarantee of the Company. Secured revolving credit V of RM20,000,000 (2017: RM20,000,000) and secured bank overdraft I of RM3,187,603 (2017:RMNil) are repayable on demand and are secured and supported as follows: (a) legal charge over the leasehold land held for property development of a subsidiary; and (b) corporate guarantee of the Company. Term loan V of RM6,994,304 (2017: RM20,994,304) 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. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018