77
SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
19.
OTHER RESERVES
(CONTINUED)
19.3 Asset revaluation reserve
The asset revaluation reserve arises on the revaluation surpluses of leasehold properties and plant and
machinery and is non-distributable.
19.4 General reserve
The general reserve relates to those transferred from accumulated losses since 1997.
19.5 Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the
translation of the financial statements of foreign operations whose functional currencies are different from
that of the Group’s presentation currency and is non-distributable.
20.
BANK BORROWINGS
Group
2015
2014
$’000
$’000
Secured
Term loan I
–
1,278
Term loan II
632
1,380
632
2,658
Group
2015
2014
%
%
Effective interest rates per annum
Term loan I
5.9
7.2
Term loan II
3.5
4.5
Term loan I from a bank was fully repaid during the year. Term loan I was secured by legal mortgage on the Group’s
leasehold properties which are located in the People’s Republic of China and floating charge over the machineries
and inventories of a subsidiary. The interest was computed based on 20% above the prevailing prime lending rate
set by People’s Bank of China.
Term loan II from a bank is a short term revolving credit repayable in June 2016. Term loan II is secured by floating
charge over the assets of a subsidiary and corporate guarantee provided by the Company. The interest is computed
based on 0.75% above the prime rate published in the Wall Street Journal.
