102
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
22.
BANK BORROWINGS (CONT’D)
Unsecured
As at the balance sheet date, unsecured bank borrowings amounting to Nil (2013: $5,343,000) of
certain subsidiaries are supported by corporate guarantees given by the Company.
The Group’s bank borrowings have the following maturity dates and interest at floating rates:
Interest rates per annum
Maturity
2014
2013
Term loans
2017
2.19%
2.19%
Bankers acceptance
–
–
4.77% – 4.80%
Trust receipts
2015
2.35% 2.26% – 3.01%
The loans include the following financial covenants:
–
the Group and Company to maintain a Tangible Net Worth not less than $110 million and
$80 million respectively
–
the Group and Company to maintain a current ratio not less than 1 time.
–
the Company to maintain a ratio of total liabilities to tangible net worth not exceeding 2 times.
–
the Company to maintain a ratio of total bank borrowings to total tangible net worth not
exceeding 1.5 times.
23.
DEFERRED INCOME
Deferred income represents the excess of sale price over the estimated fair value of the leasehold
property at 15 Jurong Port Road arising from the sale and leaseback of the property. The fair value
of the leasehold property was determined by an external valuation using a Direct Sale Comparison
Approach valuation method. The deferred income of $10 million is amortised to profit or loss over
the seven year lease period commencing February 2013. Deferred income is classified as follows:
Group and Company
2014
2013
$’000
$’000
Current
1,429
1,429
Non-current
5,833
7,262
7,262
8,691
