Ecowise Annual Report 2007 - ecoWise Holdings Limited

Notes to FinancialStatements31 October 200724. OTHER FINANCIAL LIABILITIESGroupCompany2007 2006 2007 2006$’000 $’000 $’000 $’000Bank loans 480 972 – –The borrowings are repayable as follows:Amounts due within a year:Bank loan 480 492 – –Total current portion 480 492 – –Non-current portion:The non-current portion is repayable as follows:Due within 2 to 5 years – 480 – –Total non-current portion – 480 – –The exposure of the borrowings to interest rate changes and the contractual repricing dates at the balance sheet datesare as follows:Group2007 2006$’000 $’000Below 6 months 240 246Within 6 to 12 months 240 246Within 1 to 5 years – 480Total borrowings 480 972All the borrowings are interest bearing. The borrowings are measured using the effective interest method. The carryingvalue of long-term debt approximates the fair value.The bank loan relates to a subsidiary’s bank loan and is covered by a corporate guarantee from ecoWise HoldingsLimited for $2.3 million, by a fixed charge on the Biomass Fired Cogeneration Plant of the subsidiary (Note 13) and anegative pledge over the assets of the subsidiary.The bank loan is repayable over 47 monthly instalments of $41,000 and a final instalment of $73,000 from 9 September2004.The floating interest rates paid were as follows:Group2007 2006Bank loans 5% 5%82 • ecoWise Holdings Limited • Annual Report 2007