TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
83
Notes to the financial statements
For the financial year ended 31 March 2016
25.
Bank loans
Group
2016
2015
$
$
Long-term bank loans
3,276,230 5,249,376
The borrowings are repayable as follows:
On demand or within one year
538,056 2,018,496
In the second year
562,524
544,377
In the third year
348,615
557,397
In the fourth year
194,640
338,516
In the fifth year
199,544
187,917
After five years
1,432,851 1,602,673
3,276,230 5,249,376
Less: Amount due for settlement within 12 months (shown under current liabilities)
(538,056)
(2,018,496)
Amount due for settlement after 12 months
2,738,174 3,230,880
The Group has the following principal bank loans:
(a)
a loan of $1,750,089 (2015: $$1,839,432). The loan was raised in August 2013. Repayment commenced in
September 2013 and will continue until August 2028. The loan carries effective interest rate at 2.63% (2015:
1.98%) per annum, which is swap offer rate plus 1.5%;
(b)
a loan of $900,572 (2015: $1,253,602). The loan was raised in July 2013. Repayment commenced in September
2013 and will continue until August 2018. The loan carries effective interest rate at 3.01% (2015: 2.47%) per
annum, which is swap offer rate plus 2.0%;
(c)
a loan of $476,322 (2015: $497,549). The loan was raised in December 2010. Repayment commenced in January
2011 and will continue until December 2030. The loan carries effective interest rate at 2.63% (2015: 1.95%) per
annum, which is swap offer rate plus 1.5%;
(d)
a loan of $149,247 (2015: $172,245). The loan was raised in July 2001. Repayment commenced in August 2001
and will continue until February 2021. The loan carries effective interest rate at 2.63% (2015: 1.97%) per annum,
which is swap offer rate plus 1.5%;
(e)
a loan of $Nil (2015: $917,500). The loan was raised in March 2012. Repayments commenced in March 2013 and
ended in March 2016. The loan carries effective interest at 2.61% (2015: 2.09%) per annum, which is cost of fund
plus 1.6%; and
(f)
several other smaller loans ranging from $58,000 to $160,000 in the previous financial year which have been fully
repaid during the current financial year. These loans carry effective interest rate ranging from 2.8% to 3.0%.
The bank loans are secured by way of:
(i)
a charge over the leasehold property of a subsidiary as disclosed in Note 20 to the financial statements; and
(ii)
a corporate guarantee issued by the Company.
Management estimates the fair value of the above loans to approximate their carrying amounts.
