88a z t e c h a n n u a l r e p o r t 2 0 0 9F i n a n c i a l S t a t e m e n t s18 BORROWINGS (cont’d)4) Vessel loansi) A loan of approximately $16,994,000 (2008 : $13,983,000) denominated as US$11,732,000 (2008 : US$9,723,000) wasextended to a subsidiary of the Company to purchase 2 tug boats and 6 barges. The loan bears interest at 1.85% per annumover USD SIBOR and is repayable over 5 years commencing in May 2009 (2009: US$1,391,000, 2010: US$2,831,000, 2011:US$1,923,000, 2012: US$1,923,000 and 2013: US$3,664,000). The vessel loan is secured by first priority mortgage over thevessels and a corporate guarantee from the Company. As at December 31, 2009, the outstanding balance of the vessel loan was$14,496,000 (2008 : $13,980,000) denominated as US$10,341,000 (2008: US$9,723,000).ii)During the year, an additional vessel loan of approximately $1,920,000 was extended to a subsidiary of the Company to purchasea tug boat. The loan bears a fixed inertest rate of 5.2% per annum and is repayable in 48 equal monthly instalments commencingin December 2009 (2009: $40,000, 2010: $480,000, 2011: $480,000, 2012: $480,000 and 2012: $440,000). The vessel loanis secured by first priority mortgage over the tug boat and a corporate guarantee from the Company. As at December 31, 2009, thevessel loan has an outstanding balance of $1,880,000 (2008 : Nil).19 TRADE PAYABLESGROUPCOMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Outside parties 23,330 24,512 175 130The average credit period on purchases of goods is 60 days (2008 : 60 days). No interest has been charged by suppliers on the trade payables.The <strong>Group</strong> has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.Trade payables principally comprise amounts outstanding for trade purchases and ongoing costs.The <strong>Group</strong>’s and Company’s trade payables that are not denominated in the functional currencies of the respective entities are as follows:GROUPCOMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Renminbi 121 124 - -United States dollars 15,875 14,622 11 19Euro 1 9 - -
F i n a n c i a l S t a t e m e n t sa z t e c h a n n u a l r e p o r t 2 0 0 98920 OTHER PAYABLES AND PROVISIONSGROUPCOMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Subsidiaries (Notes 5 and 12) - - 13,975 8,459Accrued expenses 5,428 6,225 1,183 2,293Customer deposits 1,970 951 33 496Provision for warranty 26 54 - -Other payables 1,149 1,460 619 638Total 8,573 8,690 15,810 11,886Provision for warrantyBalance at January 1 54 57 - -(Reversal) Charge from/to profit or loss (25) 31 - -Utilised (3) (34) - -Balance at December 31 26 54 - -The provision for warranty represents management’s best estimate of the <strong>Group</strong>’s liability under 12 months warranties granted on computerperipherals and multicommunication products based on past experience and industry averages for defective products.The <strong>Group</strong>’s and Company’s other payables that are not denominated in the functional currencies of the respective entities are as follows:GROUPCOMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Singapore dollars - 54 - -Renminbi 2,627 2,242 - -Hong Kong dollars - - - 1,124United States dollars 1,982 1,826 3,078 511