2011 Annual Report - Cargills (Ceylon)

58 Annual Report 2011Notes to the financial statements contd...Institution & facility Principal amount Repayment term & interest rateRs. ‘ 000- Bank of Ceylon 282,560 64 monthly installments of Rs. 4.42 Mn per month , commencing fromJuly 2011, at average interest rate of 7.67% for the year. Grace periodof 6 months available- Bank of Ceylon 7,482 72 monthly installments of Rs. 103,920 per month , commencing fromJanuary 2011, at average interest rate of 6.5% for the yearKotmale Dairy Products (Private) LimitedBank Overdraft- Bank of Ceylon 10,000 Average interest rate of 12.75%Import Loan- Bank of Ceylon 40,000 Repayable on maturity at average interest rate of 11.75%Bank Loans- Lankaputhra Development Bank 11,196 60 monthly installments of Rs. 186,599 per month , commencing fromMarch 2009, at average interest rate of 14% for the year-Peoples Leasing Co. 3,549 48 monthly installments of Rs. 73,940 per month , commencing fromSeptember 2009, at average interest rate of 6.5 % for the year- Peoples Leasing Co. 4,500 48 monthly installments of Rs. 93,750 per month , commencing fromAugust 2010, at average interest rate of 6.5 % for the yearKotmale Holdings PLCBank Overdraft- DFCC Vardana Bank 25,000 Average interest rate of 15%Kotmale Milk Products LimitedBank OverdraftPan Asia Bank 5,000 Average interest rate of 16%Bank LoanShort Term LoanPan Asia Bank 20,000 Average interest rate of 16.5%(c)The security offered to each loan are set out below:LoanSecurity offeredCargills (Ceylon) PLCBank of Ceylon- Overdraft facility of Rs. 94 Mn Trading stock of 15 locationsCommercial Bank- Overdraft facility of Rs. 200 Mn An agreement to mortgage land and building at Kandy for Rs. 100 Mn andCorporate guarantee from C T Holdings PLC for Rs. 50 MnMCB Bank- Overdraft facility of Rs. 200 Mn Demand promissory note for Rs. 200 Mn.Sampath Bank- Long term loan facility of Rs. 500 Mn Primary mortgage for Rs. 400 Mn over Machinery and equipments ofRs. 535 Mn, imported and locally purchased. Undertaking to executemortgage bond for Rs. 100 Mn over equipments to be imported during2009 to a total value of Rs. 135 Mn.