Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 103 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 23. Cash and bank balances Group 2017 2016 RM RM Cash on hand and at banks 61,501,174 64,749,350 Short term deposits with licensed banks 25,070,728 14,276,004 Cash and bank balances 86,571,902 79,025,354 Company 2017 2016 RM RM Cash on hand and at banks 4,258,984 3,076,071 Included in cash at banks of the Group are amounts of RM67,899 (2016 : RM16,396) held pursuant to Section 7A of the Housing Developers (Control and Licensing) Act, 1966 and therefore restricted from use on other operations. Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one month to three months (2016 : one month to three months) depending on the immediate cash requirements of the Group and earn interests at respective short-term deposit rates. The weighted average effective interest rates as at 31 December 2017 for the Group was 2.88% (2016 : 2.74%). Short-term deposits with licensed banks of the Group amounting to RM25,070,728 (2016 : RM14,276,004) are pledged as securities for borrowings (Note 24). For the purpose of the statements of cash flows, cash and cash equivalents of the Group comprise the following at the reporting date: Group 2017 2016 RM RM Cash and bank balances 86,571,902 79,025,354 Less: Bank overdrafts (Note 24) - (10,065,256) Less: Deposit with licensed bank pledged for bank guarantee (25,070,728) (14,276,004) Cash and cash equivalents 61,501,174 54,684,094 24. Loans and borrowings Group Maturity 2017 2016 RM RM Current Secured: Bank overdrafts (Note 23) On demand - 10,065,256 Bankers’ acceptances 2018 15,911,951 17,741,001 Term loans 2018 11,432,996 12,160,042 Obligations under finance leases (Note 32 (c)) 2018 18,687,338 7,406,980 46,032,285 47,373,279