MKH Annual Report 2020

202 FINANCIAL STATEMENTS ANNUAL REPORT 2020 32. LOANS AND BORROWINGS (CONT’D) The hire lease liabilities bear effective interest at rates ranging from 1.71% to 6.00% (2019: 1.71% to 6.00%) per annum. The term loans and revolving credits bear effective interest at rates ranging from 1.97% to 4.98% (2019: 3.68% to 5.95%) per annum. The bank overdrafts bear effective interest at rates ranging from 5.82% to 6.70% (2019: 6.70% to 7.95%) per annum. Secured revolving credit I of RM49,444,000 (2019: 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 RM55,000,000 (2019: RM66,000,000) 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 RM52,383,700 (2019: RM29,578,750) 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 subsidiaries; (b) debenture by way of fixed and floating charge over the land held for property development of subsidiaries; and (c) corporate guarantee of the Company. Term loan I of RMNil (2019: RM3,458,409) 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) legal charge over freehold land held for property development of a subsidiary; and (c) corporate guarantee of the Company.