NOTES TO THE FINANCIAL STATEMENTS Cont’d 17. Loans and borrowings cont’d 17.2 Islamic Medium-Term Notes cont’d Significant covenants i) The consolidated financial statements of the Group shall maintain a maximum Finance to Equity Ratio of not more than 1.75 times; and ii) The Company shall maintain its existing shareholdings in Press Metal Sarawak Sdn. Bhd. and Press Metal Bintulu Sdn. Bhd. (collectively known as “material subsidiaries”). The Company and/or its material subsidiaries are, subject to certain thresholds, limitations, exceptions and qualifications, limited from: • issuing guarantees; • entering into transactions with shareholders or affiliates; • creating any liens; • selling assets; • reducing of share capital; • lending or advancing any money to any other parties; • entering into partnership; • changing of proceeds utilisation; • substantially changing the nature or scope of its business; and • effecting a consolidation, merger or reorganisation. 17.3 Bankers’ acceptances Group 2022 2021 RM’000 RM’000 Guaranteed by the Company 615,459 1,457,203 Guaranteed by a Director of the Company - 230 615,459 1,457,433 17.4 Revolving credits Group 2022 2021 RM’000 RM’000 Guaranteed by the Company 200,956 327,212 Guaranteed by a subsidiary - 19,507 200,956 346,719 17.5 Bank overdrafts Group 2022 2021 RM’000 RM’000 Guaranteed by the Company 5,444 - Guaranteed by a subsidiary - 4,988 Guaranteed by a director 2,001 - 7,445 4,988 PRESS METAL ALUMINIUM HOLDINGS BERHAD 263
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