Sunny Tew

NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2007 (Continued)12. Bank borrowings (Continued)Bank borrowings are repayable as follows:The GroupThe Company2007 2006 2007 2006$ $ $ $Current liabilitiesWithin one financial year- secured 1,710,595 4,150,000 1,000,000 3,650,000- unsecured 120,922,375 109,945,249 113,220,911 99,547,976122,632,970 114,095,249 114,220,911 103,197,976Non-current liabilitiesAfter one financial year but within five financial years- secured 3,178,291 2,012,182 1,650,000 -- unsecured - 24,479 - -3,178,291 2,036,661 1,650,000 -* At the previous financial year-end, 30 September 2006, the Company had not conformed to banks’ covenants for the banking and credit facilities granted. Accordingly,all non-current portion of the bank loans and convertible loan of $2,650,000 and $9,939,729 respectively of the Group and the Company had been reclassified as currentin the balance sheet.SecuredThe secured portions of the bank borrowings of the Group and the Company are secured by way of:(i) legal mortgage over the leasehold buildings of the Group and of the Company with net book value of $7,587,604 (2006: $7,850,718) and $3,277,447 (2006:$3,484,406) respectively as at 30 September 2007; and(ii) pledge over the fixed deposits of a subsidiary (Note 9).HG METAL MANUFACTURING LIMITED ANNUAL REPORT 200775