TERM LOAN

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 8. TERM LOAN

On December 23, 2014, MYR2,300,000 (approximately $657,507) term loan was granted to the Company for the purchase of a four-story office with a repayment period of 240 months.

The term loan was secured by the title deed for the said property and guaranteed by directors of the Company. The term loan is subject to an interest charges at 2.10% per annum below the Bank’s Base Lending Rate (“BLR”) with daily rests. The BLR is currently at 6.85% for September 30, 2018.

On July 27, 2015, the Company made a drawdown of MYR2,300,000 (approx. $609,554) on the term loan. The repayment started effectively on September 1, 2015 with a fixed installment of MYR14,863.14 (approx. $3,726) for 240 installments.

The outstanding balance of the term loan is $502,912, of which $21,026 is due within one operating period and classified as short term, and $481,886 is due after one operating period, and has classified as long term for the period ended September 30, 2018.

Interest expenses were $18,804 and $17,398 for the nine months ended September 30, 2018 and 2017, respectively.

	September 30,		December 31,
	2018		2017
Repayable within 1 year.	$	21,026	$	20,709
Repayable within 2 year		22,027		21,695
Repayable within 3 year		23,075		22,728
Repayable within 4 year		24,168		23,808
Repayable within 5 year		25,285		24,932
Repayable after 5 year		387,331		413,408
Total Due from		502,912		527,280