ENRA Group Berhad Annual Report 2019

108 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 15. DERIVATIVE ASSETS (cont’d) The Company uses forward foreign currency selling contracts to manage some of the foreign currency transaction exposure. These contracts are not designated as cash flow or fair value hedges and are entered into for period consistent with foreign currency transaction exposure and fair value changes exposure. The Company does not apply hedge accounting. Forward foreign currency selling contracts are used to hedge the Company’s advance to a subsidiary denominated in British Pound for which firm commitments existed at the reporting date. As disclosed in Note 31 to the financial statements, the Group and the Company recognised a gain of RM401,000 (2018: RM38,000) arising from the fair value changes in derivatives. The fair value changes are mark to market of the outstanding foreign exchange forward. The methods and assumptions applied in determining the fair values of derivatives are disclosed in Note 41(d)(v) to the financial statements. 16. CASH AND BANK BALANCES AND SHORT TERM FUNDS Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Fixed deposits with licensed banks 14,604 7,026 8,089 2,799 Cash and bank balances 9,125 19,075 766 7,294 23,729 26,101 8,855 10,093 Short term funds At fair value through profit or loss - Investment in fixed income trust funds in Malaysia 6,236 20,088 6,236 17 29,965 46,189 15,091 10,110 (a) Investment in fixed income trust funds inMalaysia represent investments inhighly liquidmoneymarket instruments, which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value and hence, meet the definition to be classified as cash and cash equivalents. (b) In the previous financial year, included in the Group’s cash and bank balances is an amount of RM4,391,000 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, 2015, which is not available for general use by the Group. (c) Certain deposits with licensed banks are pledged to licensed banks as security for credit facilities granted to the Group and the Company as set out in Notes 24, 26 and 27 to the financial statements. The fixed deposits of the Group and of the Company bear average interest of 2.99% (2018: 2.07%) and 3.07% (2018: 3.19%) per annum respectively. The fixed deposits of the Group and of the Company have maturity period of one (1) month to ten (10) months (2018: one (1) month to forty-eight (48) months). (d) Information on financial risks of cash and bank balances and short term funds is disclosed in Note 42 to the financial statements.