Page 50 - Escher Annual Report 2011

Escher Group Holdings plc Annual report 2011 48
for the year ended 31 December 2011
Notes to the consolidated financial statements continued
17. Provisions and other liabilities and charges
Restoration
of leasehold
improvement
US$’000
At 1 January 2011 24
Charged to the income statement —
At 31 December 2011 24
2011
US$’000
2010
US$’000
Provisions have been analysed between current and non-current as follows:
Non-current 24 24
Current — —
24 24
The provision relates to restoration of lease improvements on the leased premises in Singapore.
18. Borrowings
Book value Fair value
2011
US$’000
2010
US$’000
2011
US$’000
2010
US$’000
Non-current liabilities
Debentures — 5,000 — 5,000
Accrued interest — 3,177 — 3,177
— 8,177 — 8,177
Current liabilities
Bank loans 8,424 19,936 8,424 19,936
Debentures 3,324 — 3,324 —
Accrued interest 68 — 68 —
11,816 19,936 11,816 19,936
Total borrowings 11,816 28,113 11,816 28,113
The debenture from Bacchantes Limited above attracts interest of 5.1% per annum which is rolled up. During the year, shares
to the value of US$0.6 million were issued in part payment of this debenture. The debenture was repaid in full on 5 January 2012
as part of a Group refinancing.
Interest on the debenture is rolled up and there is no cash impact while the interest is rolled up and due for payment on redemption
of the debenture.
Fair values
The fair values of borrowings are based on discounted cash flows where the discount rate reflects the risks inherent in each
type of borrowing. The carrying amounts of current liabilities are deemed to approximate their fair value. See note 19 for
the fair value of derivative instruments entered into in relation to these borrowings.