235 F INANC IAL Statements Sect ion 05 Annual Report 2022 NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 31. LOANS AND BORROWINGS (Contd.) Bank overdrafts The bank overdrafts secured by right over bank current account held by Ranhill Water Services Sdn. Bhd., a subsidiary of the Company. The secured bank overdrafts are denominated in Ringgit Malaysia, bear interest at Base Financing Rate (“BFR”) minus 1.0% (2021: BFR minus 1.0%) per annum with total facility of RM5,000,000. The unsecured bank overdrafts held by Ranhill Capital Sdn. Bhd. for general working capital for tenure of 3 years subject to annual review. The Bank overdrafts are denominated in Ringgit Malaysia, bear interest at the bank’s 1 month cost of fund (“COF”) + 1.50% per annum under Tawarruq shariah concept with total facility of RM2,500,000. Islamic Bridging Facility (Murabahah) On 27 September 2021, RCSB, a subsidiary of the Group, entered into an agreement with MIDF Amanah Invesment Bank to obtain a bridging facility of RM40,000,000. The bridging facility is issued for the following purposes: (i) For working capital purposes of RCSB; (ii) To advance to the Company to further advance to Ranhill Solar I Sdn. Bhd. (“RSI”) to part finance the Project Cost of RSI Solar Plant; (iii) To advance to RPI to finance/reimburse up to 80% of the Project Cost of RPI combined cycle power plant (“CCGT”); and (iv) To fund/ reimburse the fees and expenses relating to the BF-i Facility and the bank guarantee facility of up to RM10.0 million to be granted to the RPI for the purposes of the RSI Solar Plant (“BG Facility”) and the Finance Service Reserve Account (“FSRA”) a sum equivalent to the profit due in the next three (3) months. The Bridging Facility has a tenure of up to 12 months from the date of first drawdown, carries interest at Islamic Cost of Fund (“ICF”) plus 2% and secured by irrevocable and unconditional corporate guarantee from the Company. Revolving credits The facility is under the Shariah principle of Tawarruq. The purpose is restricted for working capital, capital expenditure and any other expenses related to non-water revenue, water management and services contracts or projects. The facility is up to RM15 million and is subject to review and recallable on demand. The next annual review of the facilities shall be by 31 May 2023. It bears interest at 5.09% (2021: 4.10%) per annum. 32. ZAKAT LIABILITY Group 2022 RM’000 2021 RM’000 At beginning of the year - - Provision for the year (Note 13) 381 532 Zakat paid (381) (532) - -
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