ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 108 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 16. CASH AND BANK BALANCES AND SHORT TERM FUNDS Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Fixed deposits with licensed banks 12,326 14,604 2,100 8,089 Cash and bank balances 17,340 9,125 5,044 766 29,666 23,729 7,144 8,855 Short term funds - Investment in fixed income trust funds in Malaysia 23,947 6,236 23,154 6,236 53,613 29,965 30,298 15,091 a. Cash and bank balances and short term funds are classified as financial assets. Cash and bank balances are measured at amortised cost, while short term funds are measured at fair value through profit or loss respectively. b. Investment in fixed income trust funds in Malaysia represent investments in highly liquid money market 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. 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, 25 and 26 to the financial statements. The fixed deposits of the Group and of the Company bear average interest of 2.33% (2019: 2.99%) and 3.07% (2019: 3.07%) per annum respectively. The fixed deposits of the Group and of the Company have maturity period between one (1) month to sixty five (65) months (2019: one (1) month to ten (10) months). d. Information on financial risks of cash and bank balances and short term funds is disclosed in Note 41 to the financial statements. e. The currency exposure profile of cash and bank balances and short term funds are as follows: Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Ringgit Malaysia 50,364 25,447 30,298 15,091 US Dollar 479 2,427 - - Australian Dollar 1,313 1,972 - - British Pound 1,435 96 - - Singapore Dollar 22 23 - - 53,613 29,965 30,298 15,091 f. No expected credit losses were recognised arising from the deposits with financial institutions because the probability of default by these institution were negligible.