MKH Annual Report 2019

204 A N N U A L R E P O R T 2 0 1 9 29. LOANS AND BORROWINGS (CONT’D) Term loan XI of RMNil (30.9.2018: RM8,300,524; 1.10.2017: RM16,945,952) is repayable in 12 quarterly principal instalments commencing 61st month from the day of first drawdown. Term loan XII of RM9,784,312 (30.9.2018: RM14,525,917; 1.10.2017: RM14,827,708) is repayable in 12 quarterly principal instalments commencing 48th month from the day of first drawdown. The term loans are 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) pledge of 95% shares of a subsidiary; (f) assignment over all applicable insurance policies; (g) negative pledge over a subsidiary’s assets; and (h) corporate guarantee of the Company. Term loan XIII of RMNil (30.9.2018: RM68,816; 1.10.2017: RM684,129) is repayable by 96 monthly instalments of RM52,875 each commencing December 2010 and is secured and supported as follows: (a) by way of charge over the freehold buildings of a subsidiary upon issuance of titles; (b) first party open monies deed of assignment; and (c) corporate guarantee of the Company. Term loan XIV of RMNil (30.9.2018: RM495,835; 1.10.2017: RM1,855,084) is repayable in 19 quarterly principal instalments of RM471,076 each and final instalment to be calculated and advised by the bank commencing on 4th month after the first drawdown. Secured revolving credit XI RM21,000,000 (30.9.2018: RM23,700,000; 1.10.2017: RM24,400,000) is repayable on demand. The term loan and revolving credit are secured and supported as follows: (a) facility agreement; (b) legal charge over the leasehold land and building of a subsidiary; (c) legal assignment over debt service account; (d) legal assignment over all tenancy and rent agreements; (e) specific debenture on fixed and floating charge over the leasehold land and building of a subsidiary; (f) deed of subordinate in respect of shareholders advances and loans to the subsidiary; (g) legal assignment of all of the subsidiary’s present and future rights, title and benefits in and under such insurance policies procure in respect of the charge; and (h) corporate guarantee of the Company. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019