GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 147 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 22. CASH AND BANK BALANCES (cont’d) (g) No expected credit losses were recognised arising from the cash and bank balances and deposits with financial institutions because the probability of default by these financial institutions were negligible. (h) For the purpose of statements of cash flows, cash and cash equivalents comprise the following as at the end of each reporting period: Group Company 2019 2018 2019 2018 RM RM RM RM Cash and bank balances 125,630,466 76,889,447 3,128,665 9,799,257 Deposits with licensed banks - not more than three (3) months 500,000 13,400,000 - - - more than three (3) months 12,496,594 12,019,637 - - 138,627,060 102,309,084 3,128,665 9,799,257 Add: Other investments (Note 21) 53,270,574 42,833,438 42,164,039 42,732,647 Less: Deposits pledged to licensed banks (12,332,919) (11,668,620) - - Deposits more than 3 months (163,675) (351,017) - - 179,401,040 133,122,885 45,292,704 52,531,904 23. SHARE CAPITAL Group and Company 2019 2018 Number of shares RM Number of shares RM Issued and fully paid Balance as at 1 January 737,984,933 314,343,560 659,444,992 208,109,527 Issuance of ordinary shares pursuant to: - private placement - - 65,000,000 84,500,000 - acquisition of subsidiaries 10,061,206 14,387,525 13,414,941 20,793,159 - ESS 1,163,000 1,468,840 125,000 152,500 Resale of treasury shares - - - 788,374 Balance as at 31 December 749,209,139 330,199,925 737,984,933 314,343,560 (a) The issued and fully paid-up ordinary share capital of the Company was increased by way of: (i) in the previous financial year, private placement of 65,000,000 new ordinary shares of RM1.30 each; (ii) special issue of 10,061,206 (2018:13,414,941) new ordinary shares at RM1.19 (2018 : RM1.19) (closing market price at date of issue: RM1.43) (2018:RM1.55) per ordinary share pertaining to the Share Subscription Agreement (“SSA”) with Paysys Group Holdings Sdn. Bhd. and Rica Holdings (M) Sdn. Bhd. as part of consideration paid for the acquisition of Paysys (M) Sdn. Bhd. and related acquisition expenses and general working capital purposes; and (iii) issuance of 1,163,000 (2018: 125,000) new ordinary shares for cash pursuant to the exercise of ESS.