26. CASH AND BANK BALANCES (CONT’D.) The interest rates for the deposits with licensed banks range from 1.20% to 2.25% (2020: 1.20% to 3.90%) per annum and the maturities of deposits as at the end of the financial year range from 1 to 365 days (2020: 1 to 366 days). Included in cash at banks of the Group are amounts of RM214,804,000 (2020: RM220,537,000) held pursuant to Section 7A of the Housing Development (Control and Licensing) Act, 1966 and are therefore restricted from use in other operations. Cash and bank balances not available for use of the Group and of the Company are: (i) Deposits of the Group held in trust by a trustee of RM19,827,000 (2020: RM18,264,000) for golf course members’ subscription fees. (ii) Deposits of the Group and of the Company amounting to RM8,501,000 (2020: RM3,794,000) and RM874,000 (2020: RM860,000) respectively which are pledged as securities for bank guarantees granted to the Group and to the Company. (iii) Deposits of the Group and of the Company amounting to RM63,866,000 (2020: RM117,449,000) and RM15,536,000 (2020: RM45,534,000) respectively which are pledged as securities for banking facilities granted to the Group and the Company. (iv) Placements of debt service reserve and escrow accounts of the Group and of the Company amounting to RM92,496,000 (2020: RM58,681,000) and RM29,433,000 (2020: RM10,993,000) respectively which are pledged as securities for term loans granted to the Group and the Company. 27. ASSET CLASSIFIED AS HELD FOR SALE Group 2021 2020 RM’000 RM’000 At 1 January – 75,700 Transfer from investment properties (Note 17) 17,500 – Disposals – (75,700) At 31 December 17,500 – On 31 December 2021, Tropicana Metro Sdn Bhd, a wholly-owned subsidiary, entered into a sale and purchase agreement to dispose a freehold land with a 4-storey commercial building known as “Metro Klang” in Selangor and another piece of freehold land for a total cash consideration amounting to RM17,500,000. The said disposal will be completed in financial year ending 31 December 2022. The freehold land and building with aggregate carrying amounts of RM17,500,000 (2020: RM nil) are pledged as securities for bank borrowings as disclosed in Note 32. 28. SHARE CAPITAL AND TREASURY SHARES Number of ordinary Amount shares Share capital (Issued) Share capital Treasury shares 2021 2020 2021 2020 2021 2020 ’000 ’000 RM’000 RM’000 RM’000 RM’000 Group and Company At 1 January 1,470,425 1,470,425 2,044,322 2,044,322 (6,882) (13,648) Issuance of ordinary shares 2,000 – 1,846 – – – Purchase of treasury shares – – – – (19,221) (47,063) Distribution of treasury shares – – – – – 53,829 At 31 December 1,472,425 1,470,425 2,046,168 2,044,322 (26,103) (6,882) (a) Share capital On 7 October 2021, the Company increased its issued ordinary share capital from RM2,044,322,000 to RM2,046,168,000 through the issuance of 2,000,000 new ordinary shares via a private placement at an issue price of RM0.9231 per ordinary share for a total cash consideration of RM1,846,200 for working capital purposes. The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company. (b) Treasury shares During the financial year, the Company repurchased 20,966,500 of its issued ordinary shares from the open market at an average price of RM0.9167 per share. The shares repurchased are being held as treasury shares in accordance with Section 127 of the Companies Act 2016. As at 31 December 2021, the number of treasury shares held are 29,344,743 ordinary shares. Such treasury shares are held at carrying amount of RM26,103,000 (2020: RM6,882,000). 29. OTHER RESERVES (a) Foreign currency translation reserve The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of presentation currency of the Group. (b) Retained earnings The entire retained earnings of the Company are available for distribution as single-tier dividends. FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 308 309
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