PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 126 16. INVENTORIES (CONT’D) During the financial year, inventories of the Group recognised as cost of sales amounted to RM41,021,000 (2016: RM35,985,000). Inventories written down during the financial year amounted to RM191,000 (2016: RM587,000) and are included in cost of sales. The Group reversed RM111,000 (2016: RM63,000) in respect of inventories written down in previous financial years, which were subsequently not required as the Group was able to sell those inventories above their carrying amounts. 17. CASH AND BANK BALANCES Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Cash and bank balances 9,947 15,215 128 216 Deposits placed with financial institutions 26,478 5,209 - - Investments in short term funds 5,598 80 - 8 42,023 20,504 128 224 (a) Included in the Group’s cash and bank balances is an amount of RM651,000 (2016: RM1,159,000) held under the Housing Development Account pursuant to Section 7A of Housing Development (Control and Licensing) Act, 1966, as amended by the Housing Developers (Housing Development Account) (Amendment) Regulations, 2002. (b) Deposits placed with financial institutions of the Group have maturity periods ranging from 14 days to 180 days (2016: 7 days to 365 days) with interest rates ranging from 1.00% to 6.30% (2016: 0.70% to 5.50%) per annum. Included in deposits placed with financial institutions of the Group is restricted cash of RM2,785,000 (2016: RM2,715,000) which represents deposits which are maintained in a designated Debt Service Reserve Account with a licensed bank in connection with banking facilities granted to the Group as disclosed in Note 20 to the financial statements. (c) Investments in short term funds are placements made in management funds that invest in fixed deposits and short term money market instruments offered by banks or financial institutions licensed under Financial Services Act 2013 or the Islamic Financial Services Act 2013 which allow redemption with a notice period of one (1) to thirty (30) business days. (d) The currency exposure profile of cash and bank balances are as follows: Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Ringgit Malaysia 11,718 7,020 125 37 United States Dollar 6,549 11,461 3 187 Vietnamese Dong 3,941 1,575 * - Pound Sterling 2 31 - - Euro 178 403 - - Australian Dollar * 13 - - Hong Kong Dollar 19,635 - - - Chinese Renminbi - 1 - - 42,023 20,504 128 224 * Amount is less than RM1,000. N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( c o n t ’ d )