FRONTLINE COVER FA 070606 CR2.indd
FRONTLINE COVER FA 070606 CR2.indd
FRONTLINE COVER FA 070606 CR2.indd
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frontline technologies corporation ltd<br />
annual report 2006 85<br />
> notes to the financial statement<br />
for the year ended 31 march 2006<br />
28. Hire purchase creditors<br />
Group<br />
Payments Interest Principal<br />
$ $ $<br />
2006<br />
Not later than 1 year 2,497,525 275,865 2,221,660<br />
Between 1 year to 5 years 2,443,916 178,536 2,265,380<br />
4,941,441 454,401 4,487,040<br />
2005<br />
Not later than 1 year 1,843,316 81,682 1,761,634<br />
Between 1 year to 5 years 3,101,563 48,771 3,052,792<br />
4,944,879 130,453 4,814,426<br />
Hire purchase agreements range from 2 to 7 years. Hire purchase agreements do not contain restrictions concerning<br />
dividends, additional debt or further leasing.<br />
Hire purchases are secured by finance lease receivable (Note 21) and mature in October 2009.<br />
29. Borrowings and loans<br />
Group<br />
2006 2005<br />
$ $<br />
Promissory notes issued to financial institutions (unsecured) 2,542,336 3,662,511<br />
Short term loans from financial institutions (unsecured) 499,546 5,301,371<br />
Bills payable to a bank (secured) 21,694,645 12,283,921<br />
24,736,527 21,247,803<br />
Borrowings and loans are in the operating subsidiaries of India, Malaysia and Philippines. These include working<br />
capital loans, notes and bills payable.<br />
The promissory notes and short term loans are unsecured and mature within 1 year (2005: within 1 year) and bear<br />
interest rates ranging from 12.25% to 15% (2005: 7.50% to 16.75%) per annum.<br />
Bills payable to a bank are secured by letters of credit from financial institutions, fixed deposits pledged (Note 26) and<br />
corporate guarantees and bear interest ranging from 4.5% to 13.25% (2005: 4.00% to 15.50%) per annum.
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