Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 163 27 LOANS AND BORROWINGS Group Company 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Current Unsecured: Revolving credits 515,194 724,947 134,167 233,402 Term loan 111,426 366,580 - - Trade financing 118,217 106,836 - - Fixed rate notes 30,017 33,138 - - 774,854 1,231,501 134,167 233,402 Non-current Unsecured: Term loan 113,169 - - - Revolving credits 88,500 - - - 201,669 - - - 976,523 1,231,501 134,167 233,402 The remaining maturities of the loans and borrowings are as follows: Group Company 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Within 1 year 774,854 1,231,501 134,167 233,402 More than 1 year and less than 2 years 171,399 - - - More than 2 years and less than 5 years 30,270 - - - 976,523 1,231,501 134,167 233,402 As at 31 December 2017 and 31 December 2016, there were no secured loans and borrowings held by the Group. As at 31 December 2016, due to impairment losses incurred during the financial year, certain financial covenants pertaining to loans and borrowings were technically breached. This resulted in the non-current portion of loans and borrowings amounting to RM391,188,000 being classified as current liabilities as at the balance sheet date. The banks had subsequently after the balance sheet date granted the Group indulgence from complying with these financial covenants. Accordingly, these loans and borrowings have been reclassified back to non-current liabilities during the current financial year. The facilities remained available from the banks.