34 BORROWINGS Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Non-current liabilities: Islamic term loans - Secured 363,885 518,636 363,885 518,636 Current liabilities: Islamic term loans - Secured 50,236 33,914 50,236 33,914 Bankers’ acceptances - Unsecured 378,935 354,550 - - 429,171 388,464 50,236 33,914 793,056 907,100 414,121 552,550 All borrowings are denominated in Ringgit Malaysia. Bankers’ acceptances The average interest rates of the borrowings range approximately 2.30% to 3.30% (2020: 3.27% to 3.57%) per annum. Islamic term loans The average interest rates of the borrowings range approximately 4.36% to 4.37% (2020: 4.36% to 5.67%) per annum. The Islamic term loans which have a tenure of 12 years (2020: 12 years) are secured against a leasehold land, debenture and certain bank balances of the Group. The Group and the Company are required to comply with certain financial covenants i.e. consolidated net debt and financing to equity ratio, consolidated net debt and financing to earnings before interest, tax, depreciation and amortisation (“EBITDA”) ratio and consolidated finance payment cover ratio (collectively known as “financial covenants”). The financial covenants are to be complied with annually (2020: annually). As at 31 December 2021, the Group and the Company have complied with all of the financial covenants. In the financial year ended 31 December 2020, the Group and the Company obtained a consent letter from its lender to defer the imposition of all the financial covenants for financial year ending 31 December 2020. The imposition is conditional upon the Group and the Company obtaining an official valuation report addressed to its lender on a land leased by the Company and a prepayment of RM40,000,000. These conditions have been confirmed as fulfilled by the lender on 28 December 2020. In the financial year ended 31 December 2021, the Company has made an additional prepayment of RM114,256,000. As a result of the prepayments, the Company has recorded a loan modification cost of RM9,749,000. NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 359
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