Sasbadi Annual Report 2021

102 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 102 16. CASH AND CASH EQUIVALENTS Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Cash and bank balances 6,615 5,485 52 47 Deposits placed with licensed banks 1,569 745 - - As reported in the statements of financial position 8,184 6,230 52 47 Less: Deposits pledged (1,131) (631) - - Less: Bank overdraft (8,776) (18,094) - - Cash and cash equivalents included in the statements of cash flows (1,723) (12,495) 52 47 (a) Included in the deposits placed with a licensed bank of the Group is RM1,131,000 (2020: RM631,000) pledged for bank facilities granted to certain subsidiaries (Note19). (b) Cash and cash equivalents are denominated in Ringgit Malaysia. (c) As at the end of the reporting period, the maximum credit risk exposure is equivalent to the carrying amount of cash and cash equivalents of the Group. No expected credit losses were recognised arising from the deposits with these banks and financial institutions because the probability of default by these financial institutions were negligible. (d) Weighted average effective interest rate of deposits with licensed banks of the Group as at the end of each reporting period are as follows: Group 2021 2020 Fixed rates 1.61% 1.57% 17. ASSET CLASSIFIED AS HELD FOR SALE Group 2020 RM’000 Cost 7,769 Accumulated depreciation (426) Accumulated impairment loss (345) 6,998 On 17 August 2020, the Group entered into a Sale and Purchase Agreement for the sale of leasehold land and building for a total consideration of RM7,150,000. Accordingly, the asset is reclassified to asset held for sale. As at 31 August 2020, the asset was stated at cost less accumulated depreciation and impairment loss at the date of reclassification. The disposal had been completed during the financial year ended 31 August 2021. As at 31 August 2020, the asset was charged to banks as security for banking facilities granted to the Group (Note 19).