Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKFRS 7.7 & 31
26
BANK LOANS AND OVERDRAFTS
A16(22)
(a)
The analysis of the repayment schedule of bank loans and overdrafts is as follows:
HKAS 16.74(a)
HKFRS 7.31
Within 1 year or on demand
After 1 year but within 2 years
After 2 years but within 5 years
After 5 years
(b)
Assets pledged as security and covenants for bank loans and overdrafts
At 31 December 2023, the bank loans and overdrafts were secured as follows:
226
2023
$'000
2022
$'000
33,218
40,314
5,260
3,375
40,423
40,098
5,000
6,604
50,683
50,077
83,901
90,391
2023
2022
$'000
$'000
Unsecured bank overdrafts (note 22)
1,266
2,789
Secured bank loans - supplier finance arrangement (note 26(c))
Other bank loans
9,818
8,768
secured
11,357
28,397
-
unsecured
61,460
50,437
83,901
90,391
At 31 December 2023, the banking facilities of the group were secured by mortgages over land and
buildings with an aggregate carrying value of $89,255,000 (2022: $75,087,000) and first floating
charges over property, plant and equipment with an aggregate value of $13,910,000 (2022:
$16,792,000). Such banking facilities amounted to $91,000,000 (2022: $75,000,000). The facilities
were utilised to the extent of $33,284,000 (2022: $52,065,000).
All of the group's banking facilities are subject to the fulfilment of covenants relating to certain of the
group's balance sheet ratios, as are commonly found in lending arrangements with financial
institutions. If the group were to breach the covenants the drawn down facilities would become
payable on demand. Among those banking facilities, in 2023 the group entered into a five-year
revolving loan facility amounted to $5,000,000. The facility was fully drawn down in May 2023 as a
one-year loan and will mature in April 2024. The group has the right to roll-over the loan for another
year subject to the fulfilment of a specified debt to equity ratio on each maturity date. The group
regularly monitors its compliance with these covenants. Further details of the group's management of
liquidity risk are set out in note 33(b). As at 31 December 2023, none of the covenants relating to
drawn down facilities had been breached (2022: $ nil). 225, 226
[Note that as per paragraphs 74 to 75 of HKAS 1, if a covenant is breached before the reporting date
with the effect that a liability becomes repayable on demand, the liability must be classified as a
current liability at the reporting date unless the lender has agreed to provide a grace period ending at
least twelve months after the reporting date, and that agreement was obtained before the reporting
date. Close attention should be paid to these requirements if the entity is at risk of breaching its
covenants, and disclosures should be updated to be consistent with the facts of the entity's
circumstances]
If there have been any breaches of loan agreements during the period further disclosure may be required by paragraphs 18 and 19
of HKFRS 7.
145
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