FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
98
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
26 BORROWINGS (CONT’D)
(1)
Short term bank borrowings: (Cont'd)
(b) $453,000 is secured by exclusive charge on the entire present and future current and fixed assets of a
subsidiary in India. In the last financial year, $341,000 was secured by exclusive charge on the present and
future fixed assets of a subsidiary in India.
(c) In the last financial year, an amount of $470,000 was secured by properties of a subsidiary in Malaysia.
Bank overdrafts of the Group are repayable on demand and form an integral part of the Group’s cash
management. They are denominated in Euro, USD, SGD, INR and MYR (2014 : Euro, USD, SGD, INR and MYR)
and bear interest at rates ranging from 1.32% to 14.50% (2014 : 1.41% to 14.50%) per annum.
Bankers’ acceptances of the Group of $4,975,000 (2014 : $6,185,000) are pledged on trade receivables of
subsidiaries in the People's Republic of China.
Bankers’ acceptances are denominated in USD, Euro, SGD, MYR and RMB (2014 : USD, Euro, SGD, MYR and
RMB), due within 12 months (2014 : 12 months) and bear interest at rates ranging from 1.00% to 6.63%
(2014 : 0.90% to 6.72%) per annum.
Bills payables of the Group are unsecured and denominated in USD (2014 : USD), due within 1 to 4 months and
bear interest at rates ranging from 2.28% to 2.55% (2014 : 2.13% to 2.29%) per annum.
Revolving credits of the Group are unsecured and denominated in USD (2014 : SGD), due within 3 months and
bear interest at rates ranging from 2.58% to 3.07% (2014 : 2.40% to 3.09%) per annum.
(2)
The finance lease liabilities of the Group are denominated in SGD, MYR, Euro and USD (2014 : SGD, MYR, Euro
and USD). The finance lease liabilities of the Group are secured by the rights to the leased equipment and motor
vehicles (Note 13), which will revert to the lessor in the event of default by the Group. The finance lease liabilities
of the Group bear interest at rates ranging from 2.38% to 6.75% (2014 : 2.38% to 5.60%) per annum.
(3)
Term loans of:
(a) $1,735,000 (2014 : $2,150,000) of the Group is denominated in USD, INR and RMB (2014 : MYR, INR and
RMB) and bear interest at rates ranging from 6.72% to 14.43% (2014 : 3.58% to 14.43%) per annum. The
term loans are repayable over a period of 1 to 4 years (2014 : 3 to 10 years) and are secured by exclusive
charge on the entire present and future current and fixed assets (Note 13) of a subsidiary in India, and
machineries (Note 13) of subsidiaries in the People's Republic of China; and
(b) $824,000 (2014 : $1,218,000) of the Group is denominated in MYR and SGD (2014 : SGD and CHF),
unsecured and bear interest at rates ranging from 3.12% to 5.67% (2014 : 2.25% to 3.15%) per annum.
The term loans are repayable over 1 to 3 years (2014 : 1 to 5 years).
The carrying amounts of current portion of borrowings of the Group approximated their fair values at balance sheet
date. The carrying amount of non-current portion of borrowings of the Company and of the Group approximated their
fair values as there are no significant differences between the historical interest rates at the points when the liabilities
were undertaken and the current prevailing market interest rates.
The exposure of borrowings to currency risk is disclosed in Note 34(a).
