25. BORROWINGS (CONTINUED) (a) Maturity of borrowings The bill payables and short term bank loans have an average maturity of 2 months and 1 month respectively (2024: 2 months and 1 month) from the end of the reporting year. The long term bank loans have an average maturity of 3 years from the end of the reporting year (2024: 1 years). (b) Interest rate All borrowings for the Group and Company are at floating interest rates. The weighted average effective interest rates of borrowings at the reporting date are as follows: 2025 2024 Singapore Dollar United States Dollar Others Singapore Dollar United States Dollar Others Group Bank overdraft – – – – 9.5% – Bill payables 2.5% 5.3% 5.0% 4.1% 5.9% 5.2% Short term bank loans 2.8% 5.4% 5.3% 4.5% 5.9% 6.2% Long term bank loans 2.4% – – 1.8% – – Company Bill payables 2.5% 5.2% 1.9% 4.1% 5.8% 2.5% Short term bank loans 2.8% 5.4% 5.3% 4.4% 5.9% 6.2% Long term bank loans 2.4% – – 1.8% – – (c) Carrying amounts and fair values The fair value (Level 2) of bank borrowings carried with floating interest rates is a reasonable approximation of the carrying amount as they are frequently re-priced to market interest rates. The fair value of bank borrowings carried with fixed interest rates is a reasonable approximation of the carrying amount based on the measurement using the current market interest rate. MEGACHEM LIMITED ANNUAL REPORT 2025 159 31 DECEMBER 2025 NOTES TO THE FINANCIAL STATEMENTS
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