Ntegrator International Ltd. - Annual Report 2020

83 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 17. Trade and other payables (continued) Company 2020 2019 S$’000 S$’000 Other payables - Non-related parties 159 208 Accruals for operating expenses 290 292 449 500 Other payables comprised of non-trade amounts due to shareholder of a subsidiary corporation which bear interest of 8% (2019: 8%) per annum, and are unsecured and repayable on demand. Bills payables These payables have an average maturity of 30-60 days (2019: 120-180) days. These payables are denominated in United States Dollar. 18. Borrowings Group 2020 2019 S$’000 S$’000 Current Bank overdraft (Note 11) 7,643 9,922 Bank borrowings 7,269 1,266 Lease liabilities 581 1,054 15,493 12,242 Non-current Lease liabilities 200 704 Total borrowings 15,693 12,946 The exposure of the borrowings of the Group to interest rate changes and the contractual repricing dates at the reporting dates are as follows: Group 2020 2019 S$’000 S$’000 6 months or less 14,912 11,188 (a) Securities granted Bank overdraft and bank borrowings drawn by the respective subsidiary corporations are guaranteed by the Company. (b) Breach of loan covenants Some of the Group’s loan arrangements are subject to covenant clauses, whereby the Group is required to meet certain key financial ratios. 31 December 2020 The Group did not fulfil its banks’ key financial ratio of maintaining a consolidated tangible net worth of not less than S$14,000,000. Due to this breach of covenant clause, the bank is contractually entitled to request for immediate repayment of the outstanding loan amount of S$7.3 million (2019: S$Nil) Accordingly, the outstanding balance was presented as a current liability as at 31 December 2020. As the Group is in a net asset position of S$9,001,000, hence in the event of the bank call back the loan facilities, the Group is able to repay the loan immediately.