MKH BERHAD | ANNUAL REPORT 2023 223 26. CASH, BANK BALANCES, TERM DEPOSITS AND SHORT-TERM PLACEMENTS The Group The Company 2023 2022 2023 2022 Note RM RM RM RM Deposits with licensed banks (a) 12,852,000 13,097,987 - - Cash and bank balances 145,822,619 136,413,315 1,416,743 2,466,373 Cash held under housing development accounts (b) 143,440,670 155,374,926 - - Short-term placements (c) 63,670,729 86,365,216 - 4,541,682 365,786,018 391,251,444 1,416,743 7,008,055 (a) The deposits bear effective interest at rates ranging from 1.30% to 3.20% (2022: 0.6% to 5.85%) per annum with maturity period ranging from 30 days to 3 years (2022: 30 days to 83 days). (b) 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. 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 Housing Development (Control and Licensing) Act, 1966. (c) Short-term placements of the Group and of the Company represent: (i) investment in trust funds managed by licensed investment management companies, which are tax exempt, fixed-deposit-linked and allows prompt redemption at any time; and (ii) investment in highly liquid money market funds, which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. The non-short term and highly liquid fixed deposits of RM6,426,000 (2022: RMNil) 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) bank balances of RMNil (2022: RM1,250,000) pledged as restricted fund held as security for the credit facilities as disclosed in Note 33; and (ii) deposit and bank balances of RM43,074 (2022: RM41,179) held under sinking fund account for the recreational club. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
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