28.
Other financial liabilities (cont’d)
SGD term loan at SOR + 1.25 p.a.
The SGD term loan at SOR + 1.25% p.a. is denominated in SGD, bears interest at SWAP offer rate (“SOR”) + 1.25%
(2014: Nil%) per annum and is fully repayable by 2020. The loan is secured by a corporate guarantee given by the Company.
MYR term loan at 6.25% p.a.
The MYR term loan at 6.25% p.a. is denominated in MYR, bears interest at 6.25% (2014: Nil%) per annum and is fully
repayable by 2023. The loan is secured by a first mortgage over freehold land and building with an aggregate net
carrying amount of $11,818,000 (2014: $Nil), a corporate guarantee given by the Company and short-term deposits of
$196,000 (2014: $Nil).
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% (2014: BLR - 2%) per
annum and is fully repayable on demand. The loan is secured by a first mortgage over freehold land and building with
an aggregate net carrying amount of $1,701,000 (2014: $1,980,000), 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.
MYR term loan at BECOF + 1% p.a.
The MYR term loan at BECOF + 1% p.a. is denominated in MYR, bears interest at bank effective cost of funds (“BECOF”)
+ 1% (2014: Nil%) per annum and is fully repayable in 2016. The loan is secured by a first mortgage over freehold land
and building with an aggregate net carrying amount of $11,818,000 (2014: $Nil), a corporate guarantee given by the
Company and short-term deposits of $196,000 (2014: $Nil).
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 BECOF + 1.5% (2014: 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 $1,732,000 (2014: $2,014,000), corporate guarantees given by the Company and a
subsidiary, Kingsmen Sdn Bhd and personal guarantees given by certain directors of a subsidiary, Kingsmen Keb Designers
& Producers Sdn Bhd.
VND term loans at BLR + up to 2% p.a.
The Vietnam Dong (“VND”) term loans at BLR + up to 2% p.a. are denominated in VND, bear interest at BLR + up to 2%
(2014: BLR + 2%) per annum and are fully repayable in 2016. The loans are secured by a corporate guarantee given by
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 5 (2014: 1 to 3) years. The average
effective interest rate implicit in the finance lease obligations is 6.12% (2014: 8.10%) per annum. The outstanding amount
of finance lease obligations is secured by way of legal mortgages on the underlying leased assets (Note 14).
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