AL-SALAM REIT ANNUAL REPORT 2020

147 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 14. CASH AND CASH EQUIVALENTS Group Fund 2020 2019 2020 2019 RM RM RM RM Fixed deposits with licensed banks 27,970,000 36,069,000 22,500,000 33,739,000 Cash and bank balances 6,340,983 8,422,103 6,329,870 8,297,805 34,310,983 44,491,103 28,829,870 42,036,805 Less: Restricted cash (Note (a)) (11,113) (124,298) - - Pledged deposits with licensed banks (Note (b)) (5,470,000) (12,969,000) - (10,639,000) 28,829,870 31,397,805 28,829,870 31,397,805 Deposits with licensed banks earn profit at rates ranging from 1.30% to 3.40% (2019: 2.60% to 3.60%) per annum and have maturity periods ranging from 7 days to 3 months (2019: 13 days to 3 months). (a) The Group has restricted cash which serve as reserve for prepayment of finance cost on Sukuk Ijarah amounting to RM11,113 (2019: RM124,298), which are not available for general use. (b) The deposits with licensed banks of the Group and of the Fund amounting to RM5,470,000 and RMNil (2019: RM12,969,000 and RM10,639,000) respectively are placed as reserve for repayment of finance costs on long-term Islamic financing as mentioned in Note 17 and hence, are not available for general use. 15. DEFERRED TAX LIABILITY Group and Fund 2020 RM At 1 January - Recognised in profit or loss (Note 7) 1,245,581 At 31 December 1,245,581 The deferred tax liability relates to fair value gain on investment properties which is expected to be recovered through sale. The amount of deferred tax recognised is measured using the tax rates that would apply on the sale of those assets at their carrying values at the reporting date unless the property is held with the objective to consume substantially all the economic benefits embodied in the property over time, rather than through sale. Based on the Finance Act 2019 which was gazetted in December 2019, it was clarified that the RPGT rate of 10% is prescribed for disposal of investment properties held for more than 5 years for a trustee of a trust. 16. OTHER PAYABLES AND ACCRUED EXPENSES Group Fund 2020 2019 2020 2019 RM RM RM RM Non current Tenant deposit payables 8,946,318 7,182,569 8,946,318 7,182,569