KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
78
Notes to the financial statements
11 Reserves (Cont’d)
Merger deficit
The merger deficit arises from the difference between the nominal value of the shares issued by the Company
and the nominal value of shares of the subsidiaries acquired under the pooling-of-interest method of
consolidation as described in Note 3.1(iii).
Currency translation reserve
The currency translation reserve comprises the foreign exchange differences arising from the translation of
financial statements of operations whose functional currencies are different from the presentation currency of
the Group.
12 Loans and borrowings
Group
Company
Note
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Non-current liabilities
Term loans
12(a)
9,163
3,777
–
–
Finance lease liabilities
12(a), (b)
7,076
953
–
–
16,239
4,730
–
–
Current liabilities
Term loans
12(a)
4,461
2,490
–
–
Finance lease liabilities
12(a), (b)
3,154
907
–
–
7,615
3,397
–
–
(a)
The banking facilities for term loans and finance lease liabilities are secured as follows:
•
Corporate guarantees by the Company amounted to $35,147,000; and
•
Property, plant and equipment and fixed deposits as disclosed in notes 4 and 9 respectively.
(b)
At the reporting date, the Group had obligations under finance leases that are payable as follows:
Principal
Interest
Payments
$’000
$’000
$’000
2015
Payable within 1 year
3,154
242
3,396
Payable after 1 year but within 5 years
6,870
394
7,264
Payable after 5 years
206
24
230
10,230
660
10,890
2014
Payable within 1 year
907
56
963
Payable after 1 year but within 5 years
953
66
1,019
1,860
122
1,982
