2020 UEM Edgenta Annual Report

23. CASH, BANK BALANCES AND DEPOSITS Group Company RM’000 2020 2019 2020 2019 Cash in hand and at banks 351,231 400,299 5,313 13,956 Deposits with licensed banks 326,771 158,232 9,500 33,542 678,002 558,531 14,813 47,498 a. Included in cash at bank of the Group are amounts of RM9.1 million (2019: RM34.2 million) held pursuant to Section 7A of the Housing Development (Control and Licensing) Act 1966 and Section 8A of the Housing Development Account (Control and Licensing) Sabah Act, 1978 and are restricted for use in other operations. b. D eposits with licensed banks of the Group amounting to RM3.7 million (2019: RM3.3 million) are on lien for bank guarantee facilities granted to certain subsidiaries. As at 31 December 2020, the subsidiaries have utilised guarantee facilities amounting to RM0.9 million (2019: RM1.4 million). c. Deposits with licensed banks amounting to RM2.1 million (2019: RM0.5 million) are pledged to secure certain facilities granted to the Group. d. Deposits with licensed banks of the Group amounting to RM15.0 million (2019: RM11.3 million) are pledged as securities for bank borrowing granted to a foreign subsidiary. e. Cash and fixed deposits of RM17.2 million (2019: RM4.5 million) from a foreign subsidiary are pledged as collateral for performance of service under integrated facility management contract, and are therefore restricted from use in other operation. f. Cash and bank balances amounting to RM1.2 million are held in trust to maintain and deposit all security deposits received by the Company as licensed Estate Agent held on behalf of its client. Other information on financial risks of cash, bank balances and deposits are disclosed in Note 39. 24. RETIREMENT BENEFIT OBLIGATIONS The Group operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its eligible employees. The Scheme is closed to new employees. Under the Scheme, eligible employees are entitled to retirement benefits on attainment of the retirement age of 60 (2019: 60), on medical incapacity or on death. The present value of defined benefit obligation was based on the actuarial valuation report by independent actuarist dated 20 January 2019. UEM EDGENTA BERHAD 260 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020