Wah Seong Corporation Berhad Annual Report 2019

158 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 21 DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) (CONTINUED) Gains or losses arising from fair value changes of its financial assets and financial liabilities During the financial year, the Group recognised a loss of RM896,000 (2018: gain of RM48,000) in the profit or loss arising from fair value changes of its derivative financial assets and liabilities. The method and assumptions applied in determining the fair value of derivatives are disclosed in Note 46. 22 TIME DEPOSITS Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Time deposits placed with: - licensed banks in Malaysia 29,472 30,172 4,700 8,500 - licensed overseas banks - 28,724 - - 29,472 58,896 4,700 8,500 Time deposits with maturity more than 3 months 22,670 16,868 - - Short term investments 623 609 623 609 52,765 76,373 5,323 9,109 Short term investments are liquid investments held for investment purposes. As at 31 December 2019 and 31 December 2018, the Group and the Company have no exposure to foreign currency risk for time deposits and short term investments. The effective interest rates of time deposits of the Group and the Company are as follows: Group Company 2019 2018 2019 2018 % % % % Time deposits 2.40 – 3.31 1.65 – 3.31 2.50 2.70 23 CASH AND BANK BALANCES Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Cash and bank balances 94,700 156,363 1,260 854