Notes to the Financial Statements 30 June 2008 - Abterra

Notes to the Financial Statements30 June 200824. BANK OVERDRAFTS (SECURED)Bank overdrafts of the Group which has been reclassified to disposal group in current year [Note11] are securedby a legal mortgage over a freehold land and building of the Group with a carrying amount of approximately$1,060,000 (2007: $1,141,000) [Note 17] and secured by the corporate guarantee of the Company.Bank overdrafts bear interest ranging from 1.15% to 1.25% (2007: 1.15% to 1.25%) per annum above the bank’sprime rates. As at 30 June 2008, the effective interest rate is 8 % (2007: 8%) per annum.25. OBLIGATION UNDER FINANCE LEASESMinimumpaymentGroup and Company2008 2007Present valueof paymentMinimumpaymentPresent valueof payment$’000 $’000 $’000 $’000Within one year 28 26 27 24After one year but not morethan five years 23 22 51 48Total future minimum lease payments 51 48 78 72Less: amounts representingfinance charges (3) - (6) -Present value of net minimumlease payments 48 48 72 72Finance lease agreement term ranges from 1 to 5 years with options to purchase at the end of the financelease agreement term. Finance lease agreement terms do not contain restrictions concerning dividends,additional debt or further financing. As at 30 June 2008, the effective interest rates are 5.312% (2007: 5.312%)per annum for the Group and the Company.86ABTERRAAnnual Report 2008