200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 19. Trade and other receivables (cont'd) (d) Contract cost assets Incremental costs of obtaining contracts (e) Prepayment 20. Cash and bank balances 2023 2022 2023 2022 RM RM RM RM Cash on hand and at banks 58,714,694 60,345,346 757,334 10,189,874 Short term deposits with licensed banks 4,540,948 11,884,038 - - Cash and bank balances (Note 19) 63,255,642 72,229,384 757,334 10,189,874 2023 2022 2023 2022 RM RM RM RM Cash and bank balances 63,255,642 72,229,384 757,334 10,189,874 Less: Pledged deposits (4,540,948) (11,884,038) - - Cash and cash equivalents 58,714,694 60,345,346 757,334 10,189,874 Short-term deposits with licensed banks of the Group amounting to RM4,540,948 (2022: RM11,884,038) are pledged as security for borrowings as disclosed in Note 22. For the purpose of the statements of cash flows, cash and cash equivalents comprise the following at the reporting date: Group Company 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 (2022: one month to twelve 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 2023 for the Group was 2.15% (2022: 2.17%). Group Company Included in prepayment of the Group is the purchase consideration of RM11,707,000 (2022 - Nil) by a subsidiary of the Company in relation to the acquisition of the remaining share in a joint venture, resulting in the Group's equity interest in joint venture to increase from 51% to 100%. The acquisition was completed on 9 January 2024. Included in cash at banks of the Group are amounts of RM807,206 (2022: RM660,506) held pursuant to Section 7A of the Housing Developers (Control and Licensing) Act, 1966 and therefore restricted from use on other operations. - 60 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 Kimlun Corporation Berhad 130
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