SINGAPORE WINDSOR HOLDINGS LIMITED
| Annual Report 2015
74
Year ended 31 March 2015
NOTES TO THE
FINANCIAL STATEMENTS
24. Other Financial Liabilities (cont’d)
The weighted effective interest rates paid were as follows:
Bank overdrafts and trust receipts (secured)
2014
4.50% to 6.25%
2015
–
Bank loans (secured)
2014
2.20% to 7.14%
2015
2.20% to 6.58%
The group’s bank overdraft, trust receipts and bank loans are secured by:
(i)
a legal charge over the group’s leasehold building located in China which carrying value is HK$nil (2014:
HK$5,524,000) as at 31 March 2015 (Note 13);
(ii)
a legal charge over the group’s investment property located in China which carrying value is HK$nil (2014:
HK$5,880,000) as at 31 March 2015 (Note 14);
(iii)
pledge of the group’s fixed bank deposits of HK$7,239,000 (2014: HK$28,339,000) as at 31 March 2015 (Note
21);
(iv)
pledge of a subsidiary’s keyman life insurance contracts with a total cash surrender value of HK$nil as at 31
March 2015 (2014: HK$12,980,000) (Note 16); and
(v)
corporate guarantees from the company.
(vi)
floating change on a subsidiary’s trade receivables (Note 19)
24A. Outside parties loans
Outside parties are the business partners of the group. The principal and interest are due and payables upon
maturity of the loans. The total for the loans of HK$839,000 (2014: HK$42,900,000) is at fixed rate interest. The fair
value (Level 2) is a reasonable approximation of the carrying amount. The fair value of the loans were estimated by
discounting the future cash flows payable under the terms of the loans using the year-end market interest rate 5%
(2014: 5%) applicable to loans of similar credit risk, terms and conditions.
24B. Bank overdraft and trust receipts (secured)
The bank overdraft and trust receipts at floating rates of interest are repayable on demand.
24C. Bank loans (secured)
The total for bank loans (secured) is HK$10,753,000 (2014: HK$31,944,000) at floating rates of interest. The fair
value (Level 2) is a reasonable approximation of the carrying amount due to their short term nature or that they are
floating rate instruments that are frequently re-priced to market interest rates.
The agreements for callable term bank loans as at 31 March 2014 included an overriding payment on demand
clause which gives the lenders the right to demand repayment at any time, at their sole discretion irrespective of
whether a default event has occurred. The callable term bank loans are therefore classified as current liabilities in
their entirety, irrespective of the probability that the lender will exercise the demand clause. These loans have been
repaid duting the year ended 31 March 2015.
