DEFINING DESIGN
QUALITY
86
Notes to the Financial Statements
31 December 2014
`27. Other financial liabilities (cont’d)
MYR term loan at BECOF + 1.5% p.a.
The MYR term loan at BECOF + 1.5% p.a. is denominated in MYR, bears interest at bank effective cost of funds
(“BECOF”) + 1.5% (2013: BECOF + 1.5%) per annum and is fully repayable by 2031. The loan is 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 a subsidiary, Kingsmen Designers & Producers Sdn Bhd.
VND term loans at BLR + 2% p.a.
The Vietnam Dong (“VND”) term loans at BLR + 2% p.a. are denominated in VND, bear interest at BLR + 2% (2013: BLR
+ 2%) per annum and are fully repayable in 2015. The loans are secured by a corporate guarantee of the Company.
Finance leases
The Group has finance leases for certain motor vehicles. There are no restrictions placed upon the Group by entering
into these leases. The lease terms of such finance lease obligations range from 1 to 3 (2013: 1 to 4) years. The average
effective interest rate implicit in the finance lease obligations is 8.10% (2013: 4.58%) per annum. The outstanding
amount of finance lease obligations is secured by way of legal mortgages on the underlying leased assets (Note 13).
Future minimum lease payments under finance leases together with the present value of the net minimum lease
payments are as follows:
Group
2014
2013
Minimum
lease
payments
Present
value of
payments
Minimum
lease
payments
Present
value of
payments
$’000
$’000
$’000
$’000
Not later than one year
20
18
45
41
Later than one year and not later
than five years
16
15
36
32
Total minimum lease payments
36
33
81
73
Less: Amounts representing
finance charges
(3)
–
(8)
–
Present value of minimum lease
payments
33
33
73
73
28.
Other liabilities
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Deferred income comprising:
- Advance billings receivable
624
2,828
–
–
- Advance billings received
–
42
–
–
Provision for performance share scheme
1,467
1,167
83
86
2,091
4,037
83
86
