200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 20. Trade and other receivables (cont'd) (d) Contract cost assets Incremental costs of obtaining contracts 21. Cash and bank balances 2022 2021 2022 2021 RM RM RM RM Cash on hand and at banks 60,345,346 45,617,058 10,189,874 782,239 Short term deposits with licensed banks 11,884,038 23,919,075 - - Cash and bank balances (Note 20) 72,229,384 69,536,133 10,189,874 782,239 2022 2021 2022 2021 RM RM RM RM Cash and bank balances 72,229,384 69,536,133 10,189,874 782,239 Less: Pledged deposits (11,884,038) (23,919,075) - - Cash and cash equivalents 60,345,346 45,617,058 10,189,874 782,239 22. Assets held for sale Included in cash at banks of the Group are amounts of RM660,506 (2021: RM568,509) held pursuant to Section 7A of the Housing Developers (Control and Licensing) Act, 1966 and therefore restricted from use on other operations. These are properties that are expected to be recovered primarily through sale rather than through continuing use. The incremental costs of obtaining contracts primarily comprise commisions paid to sales agents and legal costs paid to lawyers as a result of obtaining property sales and purchase contracts with customers. The costs are to be amortised over the period when the related revenue is recognised. 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 twelve months (2021: one month to three months) depending on the immediate cash requirements of the Group and earn interest at respective short-term deposit rates. The weighted average effective interest rates as at 31 December 2022 for the Group was 2.17% (2021: 1.61%). Short-term deposits with licensed banks of the Group amounting to RM11,884,038 (2021: RM23,919,075) are pledged as security for borrowings as disclosed in Note 23. For the purpose of the statements of cash flows, cash and cash equivalents comprise the following at the reporting date: Group Company Group Company - 79 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 Annual Report 2022 144
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