O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX

OTTO MARINE LIMITED AND ITS SUBSIDIARIES
$43,530,000 is expected to be repaid within 12 months from December 31, 2007 and $33,373,000 is
expected to be repaid between January 2009 and August 2009.
The bank loan is secured by:
a deed of encumbrance for land and building located at the subsidiary’s premise;
fiduciary transfer of machineries and equipment located at the subsidiary’s premise;
fiduciary transfer of inventory located at the subsidiary’s premise;
a charge over one of the subsidiary’s receivables arising from contracts entered into or to be
entered into in relation to the vessels construction and/or repairs; and
corporate guarantee from the Company.
Note e:
In 2007, Bank loan 3 is drawn down to finance the acquisition of vessels by certain subsidiaries.
The loan arranged at floating interest rates which are subject to change at the bank’s discretion and
exposes the Group to fair value interest rate risk. The bank loan bears interest at floating rate at 1%
below the bank’s Prime Lending Rate. The average interest rate approximates 6.5%. Bank loan 3 is
repayable in 84 monthly instalments of US$180,000 commencing from November 2007. The bank loan
is secured by:
a charge over related parties’ interest in quoted shares;
personal guarantee from a director;
all monies legal mortgages over the vessels under finance (“mortgaged vessels”); and
assignment of all income, sales and purchase agreement, shipyard contracts and insurances taken
over the mortgaged vessels.
Note f:
In 2007 and 2006, Bank loan 4 is arranged at floating interest rates which are subject to change at
the bank’s discretion and exposes the Group to cash flow interest rate risk. The bank loans bear interest
at floating rate at 0.5% below the bank’s US$ prime lending rate and are expected to be repaid within
12 months from December 31, 2007. The average interest rate ranges from 6% to 11.8% (2006: 7.8%)
per annum. The security of Bank loan 4 is disclosed in Note e above.
17 Trade Payables
2007 2006 2005
$’000 $’000 $’000
Related parties (Note 5) . . . .................................. 4,646 — 4,579
Accruals — trade .......................................... 63,953 10,686 2,414
Outside parties ............................................ 100,166 28,908 13,626
168,765 39,594 20,619
The average credit period on purchases of goods from third parties is 90 to 180 days (2006: 90 to
180 days; 2005: 90 days).
Trade payables principally comprise amounts outstanding for trade purchases and ongoing costs.
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