Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 133 22. Cash and bank balances 2019 2018 2019 2018 RM RM RM RM Cash on hand and at banks 42,812,707 13,393,258 588,331 2,400,916 Short term deposits with licensed banks 22,127,558 22,176,169 - - Cash and bank balances (Note 21) 64,940,265 35,569,427 588,331 2,400,916 2019 2018 2019 2018 RM RM RM RM Cash and bank balances 64,940,265 35,569,427 588,331 2,400,916 Less: Bank overdrafts (Note 23) (24,078,130) (18,251,991) - - Less: Pledged deposits (22,127,558) (22,176,169) - - Cash and cash equivalents 18,734,577 (4,858,733) 588,331 2,400,916 Short-term deposits with licensed banks of the Group amounting to RM22,127,558 (2018: RM22,176,169) are pledged as security for borrowings (Note 23). Included in cash at banks of the Group are amounts of RM1,682 (2018: RM1,521) held pursuant to Section 7A of the Housing Developers (Control and Licensing) Act, 1966 and therefore restricted from use on other operations. Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one month to three months (2018: one month to three months) depending on the immediate cash requirements of the Group and earn interest at respective short-term deposit rates. The weighted average effective interest rates as at 31 December 2019 for the Group was 2.80% (2018: 2.93%). For the purpose of the statements of cash flows, cash and cash equivalents comprise the following at the reporting date: Group Company Company Group