FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201224. BORROWINGSCurrentGroup2012 2011US$’000US$’000Bank overdrafts (Note 17) - 164Bank borrowings- Export credit financing 10,204 23,968- Bankers’ acceptance 226,121 153,122- Revolving credit 9,261 11,823- Trust receipts and bills payable 13,267 142,088- Term loans 25,244 7,893Finance lease liabilities (Note 24(c)) 169 301Non-currentBank borrowings284,266 339,359- Term loans 99,222 46,513Finance lease liabilities (Note 24(c)) 184 25899,406 46,771Total borrowings 383,672 386,130(a) Securities grantedThe borrowings of the Group are secured by:- Specific fixed charge and legal charges against certain assets of several subsidiaries- Personal guarantee by a director of a subsidiary- Corporate guarantees by the Company and certain subsidiariesFinance lease liabilities are secured over the leased motor vehicles as at 31 December 2012 with carrying value of US$1,070,000 (2011:US$945,000) as the legal title is retained by the lessor and will be transferred to the Group upon full settlement of the finance leaseliabilities.(b) Fair value of non-current borrowingsThe fair value of borrowings approximated the carrying value of the borrowings at statement of financial position date as they bearinterest at rates which approximate the current incremental borrowing rate for similar types of lending and borrowing arrangements,which management expects to be available to the Group.82