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A N N U A L R E P O R T 2 0 1 5
T H E S T R E N G T H O F O U R B R A N D S
20 . ot he r F i nanc i a l L i ab i l i t i e s ( Con t ’ d )
20b. Trust receipts and bills Payables
The credit facilities for trust receipts and bills payables provide among other matters for the following:
(a)
A fixed and floating charge over inventories and accounts receivables;
(b)
Joint and several guarantees by the Executive Directors of the Company; and
(c)
Corporate guarantee by the Company.
The period of financing under trust receipts is 120 days inclusive of suppliers’ credit. The interest is payable up to 2.25%
per annum over Singapore Inter Bank Offer Rate (SIBOR) prevailing from time to time.
20C. Finance Lease Payables
group
2015:
minimum
payments
Finance
charges
Present
value
$’000
$’000
$’000
Minimum lease payments payable:
Due within one year
1,653
(66)
1,587
Due within 2 to 5 years
498
(31)
467
Total
2,151
(97)
2,054
Net book value of plant and equipment and inventories under finance leases
4,368
group
2014:
minimum
payments
Finance
charges
Present
value
$’000
$’000
$’000
Minimum lease payments payable:
Due within one year
1,273
(50)
1,223
Due within 2 to 5 years
1,643
(86)
1,557
Total
2,916
(136)
2,780
Net book value of plant and equipment and inventories under finance leases
4,346
There are leases for certain of its plant and equipment and inventories under finance leases. The average lease term
is 2 to 8 years. The average effective interest rate is about 1.38% to 1.88% (2014: 1.38% to 1.88%) per year. All leases
are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The
obligations under finance leases are secured by the lessor’s charge over the leased assets and corporate guarantee by
the Company.
