MKH Annual Report 2017

22. CASH, BANK BALANCES, TERM DEPOSITS AND FIXED INCOME FUNDS The Group The Company 2017 2016 2017 2016 RM RM RM RM Deposits with licensed banks 8,830,105 16,239,439 - - Cash and bank balances 132,260,508 105,127,118 12,145,700 267,497 Cash held under housing development accounts 91,347,222 161,725,882 - - Fixed income funds: Redeemable at call 10,378,499 15,389,739 - - Redeemable upon 1 day notice 11,183,738 2,331,389 - - Redeemable upon 5 days notice 10,609,703 4,273,583 - - 264,609,775 305,087,150 12,145,700 267,497 The deposits bear effective interest at rates ranging from 1.65% to 3.67% (2016: 0.40% to 3.67%) per annum with maturity period ranging from 15 days to 365 days (2016: 15 days to 365 days). Fixed income funds represent investment in highly liquid money market, which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Cash held under housing development accounts represent amounts placed in Housing Development Accounts (“HDA”) in accordance with Section 7(A) of the Housing Development (Control and Licensing) Act, 1966 (Amended 2002). These HDA accounts, which consist of monies received from purchasers, are for the payment of property development costs incurred. The surplus monies in these accounts, if any, will be released to the Group in accordance with the provisions of the Act. The non-short term and highly liquid fixed deposits of RM4,312,380 (2016: RM5,175,335) included in deposit with licensed banks have maturity period of more than 3 months. Cash and cash equivalents held by the Group which are not freely available for general use are as follows: (i) deposits amounting to RM2,000,000 (2016: RM2,400,000) pledged for bank guarantee facilities granted to a subsidiary; (ii) bank balances of RM16,480,238 (2016: RM14,311,662) pledged as restricted fund held as security for the credit facilities as disclosed in Note 28; and (iii) deposit and bank balances of RM24,377 (2016: RM20,333) held under sinking fund account for the recreational club. Notes to the Financial Statements For the Financial Year ended 30 September 2017 159 MKH Berhad • Annual Report 2017