Kimlun Corporation Berhad Annual Report 2018

22. Loans and borrowings (cont’d) Obligations under finance leases These obligations are secured by a pledge over the leased assets (Note 12). The discount rate implicit in the leases is between 1.68% to 3.77% (31.12.2017 : 2.37% to 3.56%; 1.1.2017: 2.37% to 3.36%) per annum. Bank overdrafts, bankers' acceptance, term loans and invoice financing. The interest rates (per annum) at the reporting date were as follows: Group 31.12.2018 31.12.2017 1.1.2017 % % % Bank overdrafts 5.35 to 8.37 5.35 to 8.29 5.35 to 8.15 Bankers' acceptances 3.68 to 5.10 4.15 to 6.42 4.35 to 6.40 Term loans 5.20 to 6.85 4.90 to 6.70 4.90 to 6.65 Invoice financing 4.61 to 7.95 - - Revolving credit 4.95 to 5.27 - - The bank overdrafts, bankers' acceptance and term loans together with bank guarantee facilities are secured by: (a) First party first legal charge over a parcel of leasehold land as disclosed in Note 12; (b) First party first legal charge over certain land held for development and development properties as disclosed in Note 18; (c) Short term deposits as disclosed in Note 21; and (d) Corporate guarantee by the Company. Movement in loans and borrowings were as follows: Group 2018 2017 RM RM At 1 January 129,602,722 115,035,316 Drawdown: - obligations under finance lease 42,755,954 59,278,206 - loans and borrowings 253,848,170 50,237,318 Repayments: - obligations under finance lease (24,637,129) (16,323,750) - loans and borrowings (146,667,937) (68,559,112) Net changes in bank overdrafts 18,251,991 (10,065,256) At 31 December 273,153,771 129,602,722 Kimlun Corporation Berhad 105 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2018 (cont’d)