MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 210 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 19. AMOUNTS OWING BY/(TO) ASSOCIATES (CONT’D) The trade balance relates to the development work for the online tax monitoring project (“the Project”) and is repayable upon the commencement of the said project. On 3 December 2014, the Company received a revised letter of award under the service tax regime to develop the Project. Nevertheless, the Goods and Services Tax (“GST”) was implemented on 1 April 2015 and the service tax regime was replaced by the GST regime whereby the Project has been varied. Accordingly, the Project was being reviewed to cater for certain requirements and enhancements following the implementation of GST. A technical committee together with a steering committee have been established by the relevant authorities for this purpose. The amendments to the relevant Act for the purpose of the implementation of the Project have been completed and came into effect from 1 January 2017. An internal trial run was carried out to ensure any further technical issues in relation to the Project are resolved prior to commercialisation in the near future. Effective 1 June 2019, it was announced by the Ministry of Finance (“MOF”) that a zero-rated GST will be imposed. Subsequent to this announcement, the GST regime has been abolished and replaced by the Sales and Services Tax (“SST”). Hence, the Project has been temporarily suspended. Accordingly, full impairment on the amount owing by the associate has been provided in the financial period ended 2018. 20. AMOUNT OWING BY JOINT VENTURES The non-trade balances represent unsecured interest-free advances and payment made on behalf. The amount owing is to be settled in cash. 21. FIXED DEPOSITS WITH LICENSED BANKS (a) The fixed deposits with licensed banks of the Group and the Company at the end of the reporting period bore effective interest rates ranging from 1.40% to 3.10% (2020 - 1.35% to 3.35%) per annum and 1.75% (2020 - 3.10% to 3.35%) per annum respectively. The fixed deposits have maturity periods ranging from 1 to 12 (2020 - 1 to 12) months and 12 (2020 - 12) months for the Group and the Company respectively. (b) Included in the fixed deposits with licensed banks of the Group and the Company at the end of the reporting period were amounts of RM13,336,231 and RM8,030,339 (2020 - RM12,624,440 and RM7,688,096) respectively which have been pledged to licensed banks as security for banking facilities granted to the Group and the Company. (c) At the end of the reporting period, the fixed deposits of the Group and the Company amounting to RM314,586 and RM33,000 (2020 - RM227,460 and RM33,000) respectively were held in trust by a director of a subsidiary and a director of the Company. The fixed deposits held in trust have been pledged to licensed banks as security for banking facilities granted to the Group and the Company. 22. CASH AND BANK BALANCES Included in the cash and bank balances is the following:- The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Short-term cash investments 4,026 116,347 2,083 55,650 The short-term cash investments represent investment in highly liquid money market. These investments are readily convertible to known amount of cash and are subject to an insignificant risk of changes in value.
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