29 BORROWINGS (CONTINUED)
The significant borrowings are secured by:
Term loan - Syariah compliant
A third party, first legal change over certain investment property including the building with a carrying amount of
RM210,654,000 (Note 17).
Other borrowings are secured by:
(a) a Letter of Undertaking cum Awareness;
(b) a fresh negative pledge;
(c) an assignment of the proceeds to be received from the disposal of the building;
(d) facility agreement;
(e) fixed and floating charge over certain present and future assets;
(f) third party’s loan agreement cum assignment over certain the leasehold land;
(g) jointly and severally guaranteed by certain directors of a subsidiary;
(h) for certain loans by a subsidiary, a letter of awareness;
(i) negative pledge.
Finance lease liabilities are secured by the related equipment and motor vehicles.
In connection with certain borrowings, the Group has to comply with the following significant covenants:
(i) The Group finance to equity ratio being not more than 1.5 times (Islamic Medium Term Notes).
(ii) A subsidiary's dividends declared or paid being not more than fifty percent (50%) of profit after tax.
(iii) A subsidiary’s debt service current ratio to be maintained at a minimum of 1.5 times.
(iv) A subsidiary’s borrowings over net tangible assets being not more than 2.0 times.
309
KPJ Healthcare Berhad
Annual Report
2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
