ANNUAL REPORT

Middle East Development Singapore ltdannual report 2007 61NOTES TO FINANCIALSTATEMENTS30 June 200710. PROPERTY, PLANT AND EQUIPMENT (Cont’d)Motor Plant andCompany vehicles equipment Total$ $ $Cost:At beginning of year 1 July 2005 365,888 910,777 1,276,665Additions – 721 721Disposals – (388,612) (388,612)At end of year 30 June 2006 365,888 522,886 888,774Accumulated depreciation:At beginning of year 1 July 2005 163,118 843,585 1,006,703Additions 68,328 46,240 114,568Disposals – (383,532) (383,532)At end of year 30 June 2006 231,446 506,293 737,739Net book value:At end of year 30 June 2006 134,442 16,593 151,035Certain plant and equipment are under finance lease agreement (see Note 13).11. SHORT-TERM BORROWINGSGroupCompany2007 2006 2007 2006$ $ $ $Advances against trade receivables factored (Note 5) 164,388 100,635 – –Bills discounted – 27,675 – –Bank overdrafts (secured) 292,522 775,287 – 678,430Total short-term borrowings 456,910 903,597 – 678,430The bank overdrafts of the Group and Company are covered by corporate guarantees by the Company to its subsidiary and fixeddeposits pledged with the banks respectively (Note 4). All the short-term borrowings are interest bearing. The range of floatinginterest rates paid was as follows:2007 2006Advances against trade receivables factored 6.0% to 7.0% 6.0% to 7.0%Bills discounted – 7.0%Bank overdrafts 6.5% to 7.75% 6.0% to 7.55%The above interest rates approximate the weighted effective interest rate.