2012 wintec annual report

NOTES TO THE
FINANCIAL STATEMENTS
For the year ended 31 December 2012.
14 BORROWINGS
CONSOLIDATED
2012
$'000
2011
$'000
2012
$'000
PARENT
2011
$'000
Current
Bank overdraft - 4,996 72 5,000
Secured loans 80 804 80 804
Total current portion 80 5,800 152 5,804
Non-current
Secured loans 7,160 7,240 7,160 7,240
Finance leases - - - -
Total non-current portion 7,160 7,240 7,160 7,240
Total borrowings 7,240 13,040 7,312 13,044
Secured loans
Secured loans are issued using a customised average rate loan (CARL) facility which has portions of its principal drawn down at floating,
capped, range, and/or fixed rates of interest. Interest rates are weighted and reset monthly, based according to the principal outstanding for
each portion.
The Institute’s current borrowings including the bank overdraft are $152,000 as at 31 December 2012 (2011 $5,804,000).
Security
The overdraft and secured loans are secured by a negative pledge agreement between the Bank of New Zealand and the Institute.
The maximum amount that can be drawn down against the overdraft facility is $5,000,000.
Secured loan covenants
The Institute is required to ensure that the following financial covenant ratios for secured loans are achieved during the year:
• net surplus ratio of 3.0%.
• cash ratio of at least 111%.
• interest cover ratio of no less than 3 times.
• debt cover ratio of no more than 1.8 times.
• maintain access to $7.5m of liquidity for at least 275 days in any continuous 365 day period.
• maintain a liquidity ratio of 12%.
Secured loans become repayable on demand in the event these covenants are breached or if the Institute fails to make interest and principal
payments when they fall due. The Institute has complied with all covenants and loan repayment obligations during 2012.
The Institute and Group have no finance leases.