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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 351

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

28 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise of the following:
Group Company
2021 2020 2021 2020
RM’000 RM’000 RM’000 RM’000

Fixed deposits with licensed investment bank in Malaysia 81,119 127,748 37,395 16,688
Cash and bank balances 113,656 68,173 16,387 3,672
Deposits, cash and bank balances 194,775 195,921 53,782 20,360
Less: Restricted cash (16,693) (15,997) (16,693) (15,997)
Cash and cash equivalents 178,082 179,924 37,089 4,363

The effective interest rates of the fixed deposits range from 1.60% - 2.13% (2020: 1.57% - 3.30%) per annum for the Group
and range from 1.60% - 2.13% (2020: 1.57% - 3.30%) per annum for the Company respectively. All fixed deposits have
original maturity terms of 3 months or less (2020: 3 months or less).
Bank balances are deposits held at call with banks and earn no interest.
Restricted cash relates to bank balance pledged in order to obtain certain bank facilities.
The fixed deposits, cash and bank balances are denominated as follows:

Group Company
2021 2020 2021 2020
RM’000 RM’000 RM’000 RM’000

Ringgit Malaysia 118,721 150,447 53,782 20,360
US Dollar 76,054 44,231 - -
AE Dirham - 1,243 - -
194,775 195,921 53,782 20,360
Credit rating profiles of banks in which the fixed deposits have been placed are as follows:
Group Company
2021 2020 2021 2020
RM’000 RM’000 RM’000 RM’000

AAA 81,119 127,748 37,395 16,688
AAA – A financial institution rated AAA has a superior capacity to meet its financial obligations. This is the highest
long-term financial institution rated assigned by RAM Ratings.
AA – A financial institution rated AA has a strong capacity to meet its financial obligations. The financial institution is
resilient against adverse changes in circumstances, economic conditions and/or operating environments.

A – A financial institution rated A has an adequate capacity to meet its financial obligations. The financial institution is
more susceptible to adverse changes in circumstances, economic conditions and/or operating environments than
those in higher-rated categories.
For long-term ratings, RAM Ratings applies subscripts 1, 2 or 3 in each rating category from AA to C. The subscripts
1 indicates that the financial institution ranks at the higher end of its generic rating category; the subscript 2 indicates a
mid-ranking; and the subscripts 3 indicates that the financial institution ranks at the lower end of its generic rating category.