Serba Dinamik Annual Report 2016

2016 Annual Report 137 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 11. DEPOSITS AND PREPAYMENT (CONT’D) On 25 August 2016, the Company has obtained approval for purchase of an industrial land for consideration of RM11,533,950. Subsequent to the approval, the Company has paid RM 1,753,160 as prepayment for the said purchase. The success of the purchase is subject to the execution of Sale and Purchase Agreement with the vendor. 12. CASH AND CASH EQUIVALENTS Group Company 2016 2016 RM RM Cash and bank balances 54,322,206 1 Deposits placed with licensed banks 133,030,762 – 187,352,968 1 12.1 Term deposits are pledged for banking facilities granted to the Group (see Note 14). 12.2 Cash and bank balances include the following balances denominated in foreign currency: 2016 RM USD 38,234,083 12.3 Included in the term deposits of the Group is an amount of RM107,374,612 which bears interest ranging from 3.03% to 3.06% per annum. The remaining term deposits pledged are placed in Islamic Structured deposits/investment with tenor at least 5 years maintained with a licensed bank. The principal and profit earned would not be released back to the Group but included in the Islamic Structured deposits/ investment.