Page 163 - ar2010

161

notes to the

financial statements

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 (cont’d)

31 BORROWINGS (CONTINUED)

Later than Later than Later than Later than 1 year and 2 years and 3 years and 4 years and

Not later not later not later not later not later Later than

than 1 year than 2 years than 3 years than 4 years than 5 years 5 years Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group 2010

Hire purchase and fnance lease liabilities

- conventional 6,009 4,830 3,771 1,835 2,287 10 18,742

- Bai Al-Inah 1,787 1,662 1,741 1,786 878 0 7,854

7,796 6,492 5,512 3,621 3,165 10 26,596

Less: Future fnance charge

- conventional (2,770)

- Bai Al-Inah (82)

(2,852)

23,744

2009

Hire purchase and fnance lease liabilities 12,262 5,878 3,007 1,293 674 489 23,603

Less: Future fnance charges

- Hire purchase and fnance lease liabilities (1,969)

21,634

The borrowings are secured by:

(a) fxed charge on certain landed properties of the Group (Note 17); (b) frst fxed charge on certain assets of the Group by way of debenture;

(c) letter of awareness, letter of comfort and letter of subordinates from Johor Corporation; (d) a negative pledge over some of the fxed and foating assets of the Group;

(e) fxed frst and foating charge over some movable and immovable assets of the Group; and

(f) fnance leases are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

Commercial Papers/Medium Term Notes (“CP/MTN”)

Salient features of the CP/MTN are as follows:

1) Total outstanding nominal value of the CPs and MTNs (collectively known as ‘Notes’) shall not exceed RM250 million. 2) The tenure of the Facility is up to 7 years from date of the frst issuance of any Notes (12 November 2004) under the Facility. 3) CP has a maturity of between 1, 2, 3, 6 and 7 months and are mandatorily redeemed at nominal value upon maturity date. The

CP is issued at a discount to its value.

4) MTN has a maturity of 1 year but not more than 7 years and on condition that the MTN matures prior to the expiry of the

tenure of the Facility. The MTN shall be mandatorily redeemed at nominal value upon maturity date. The interest for the MTN shall be payable semi-annually upon maturity of MTN.

5) The CP/MTN Facility is issued on a clean basis and shall be fully repaid at the end of the tenure of the Facility.