Megachem Limited Annual Report 2015 110 Notes to the Financial Statements 31 December 2015 22. Borrowings (cont’d) (c) Interest rate All borrowings are at floating interest rates. The weighted average effective interest rates of borrowings at the reporting date are as follows: Group 2015 2014 SGD USD Others SGD USD Others Bills payables 2.6% 2.2% 3.0% 1.9% 1.9% 5.1% Short term bank loans 2.8% 2.0% 5.6% 2.0% 1.9% 4.2% Long term bank loan 2.3% – 4.9% 1.7% – – Company 2015 2014 SGD USD Others SGD USD Others Bills payables 2.6% 1.9% 1.3% 1.9% 1.9% 1.6% Short term bank loans 3.0% 2.0% – 2.0% 1.9% 4.2% (d) Carrying amounts and fair values The fair value (Level 2) is a reasonable approximation of the carrying amount. The fair value of bank borrowings is a reasonable approximation of the carrying amount as they are floating rate instruments that are frequently re-priced to market interest rates.
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