235 INTEGRATED ANNUAL REPORT 2025 ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 26. OTHER ASSETS (CONTINUED) Included in the Group’s current prepayments is an amount of RM80 million (2024: RM79 million) relating to prepayments to vendors for EPCIC business activities and RM16 million (2024: RM47 million) relating to purchase of capital spares. The Group’s non-current contract cost assets as at 31 January 2025 related to modification work on an FPSO vessel chartered to First Exploration and Petroleum Development Company Limited (“FEP”) which is expected to complete in the financial year ending 31 January 2027. Management has assessed the recoverability of the capitalised costs and considers it probable that the costs will be recovered, based on the commencement of the charter, the agreed scope of modifications, and the vessel’s operational readiness. 27. CASH AND BANK BALANCES Group Company 2025 RM million 2024 RM million 2025 RM million 2024 RM million Cash on hand and at banks 2,337 2,579 11 10 Deposits with licensed banks 342 484 - - Cash and bank balances 2,679 3,063 11 10 For the purpose of the statements of cash flows, cash and cash equivalents at the reporting dates comprised the following: Group Company 2025 RM million 2024 RM million 2025 RM million 2024 RM million Cash and bank balances 2,679 3,063 11 10 Less: Fixed deposits with maturity period over 3 months (89) (95) - - Cash and cash equivalents 2,590 2,968 11 10 Cash at banks earns interest at floating rates based on daily bank deposit rates. Deposits with licensed banks are made for varying periods of between one to ten months, depending on the immediate cash requirements of the Group, and earn interest at the respective deposit rates. Included in cash and bank balances are bank balances and deposits with licensed banks of the Group and the Company amounting to RM1,406 million and RM1 million respectively (2024: RM1,503 million and RM1 million respectively) that were restricted based on the respective requirements of the lenders. These restricted amounts can only be used for purposes specified in the respective loan agreements, such as: - Debt Service Reserve Accounts, where specified minimum amounts are required to be maintained to service loans; - Operation and maintenance restricted accounts, where the amounts can only be utilised for expenses related to the charter and operation and maintenance contracts relating to the specified FPSO; and - FPSO restricted accounts, where the amounts can only be utilised for construction of a FPSO, as disclosed in Note 33.
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