KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
85
Notes to the Financial Statements
31 December 2014
27.
Other financial liabilities
Group
2014
2013
$’000
$’000
Current
Trust receipts
935
551
Bank overdrafts
–
2
MYR term loan at BLR - 2% p.a.
1,705
1,784
MYR term loan at BECOF + 1.5% p.a.
52
59
VND term loans at BLR + 2% p.a.
2,133
363
Finance leases
18
41
Current, total
4,843
2,800
Non-current
MYR term loan at BECOF + 1.5% p.a.
1,656
1,730
Finance leases
15
32
Non-current, total
1,671
1,762
Current and non-current, total
6,514
4,562
The range of floating interest rates per annum paid was as follows:
Trust receipts
8.10% to 8.35%
8.10%
Bank overdrafts
8.10% to 8.35%
8.10%
MYR term loan at BLR - 2% p.a.
4.60% to 4.85%
4.60%
MYR term loan at BECOF + 1.5% p.a.
4.78% to 5.13% 4.78% to 4.80%
VND term loans at BLR + 2% p.a.
7.50% to 9.75% 9.00% to 14.00%
The range of fixed interest rates per annum paid was as follows:
Finance leases
3.75% to 16.80% 2.60% to 16.80%
The carrying amount of the Group’s non-current MYR term loan at BECOF + 1.5% p.a. is a reasonable approximation
of fair value as it is a floating rate instrument that is repriced to market interest rate on or near the end of the
reporting year.
The fair value of the Group’s non-current finance leases is determined to be $9,000 (2013: $20,000) which is
estimated by discounting expected future cash flows at market incremental lending rates for similar types of leasing
arrangements.
The details of the loans and borrowings are as follows:
Trust receipts
The trust receipts are denominated in Malaysian Ringgit (“MYR”), bear interest at bank lending rate (“BLR”) + 1.5%
(2013: BLR + 1.5%) per annum and are repayable within the next twelve months. The trust receipts are secured by a first
mortgage over freehold land and building with an aggregate net carrying amount of $2,014,000 (2013: $2,072,000),
corporate guarantees given by the Company and a subsidiary, Kingsmen Sdn Bhd and personal guarantees given by
certain directors of subsidiaries, Kingsmen-Keb Systems Sdn Bhd and Kingsmen Designers & Producers Sdn Bhd.
Bank overdrafts
The bank overdrafts are denominated in MYR, bear interest at BLR + 1.5% (2013: BLR + 1.5%) per annum and are
repayable on demand. The bank overdrafts are secured by corporate guarantees given by the Company and a
subsidiary, Kingsmen Sdn Bhd and personal guarantees given by certain directors of a subsidiary, Kingsmen-Keb
Systems Sdn Bhd.
MYR term loan at BLR – 2% p.a.
The callable MYR term loan at BLR - 2% p.a. is denominated in MYR, bears interest at BLR - 2% (2013: BLR - 2%) per
annum and is repayable on demand. The loan is secured by a first mortgage over freehold land and building with
an aggregate net carrying amount of $1,980,000 (2013: $2,036,000), a corporate guarantee given by a subsidiary,
Kingsmen Sdn Bhd and personal guarantees given by certain directors of a subsidiary, Kingsmen-Keb Systems Sdn
Bhd.
